Starting a Business in Augusta, Georgia

Morrison Marketing

Starting a business in Augusta, Georgia

     In order to start and operate your business, one must comply with a wide range of local, state and federal rules. The first and most simple is to get a business license from the city. The License and Inspections Department can be reached at (706) 312-5050 for further questions. The process is very fast and simple. 

Tax Amount Table, for estimated gross receipts

Bracket	Gross Receipts	Tax Class 1	Tax Class 2	Tax Class 3	Tax Class 4	Tax Class 5	Tax Class 6
1	$1 - $30,000	$89	$89	$91	$91	$92	$92
2	$30,001 - $100,000	$96	$98	$101	$105	$107	$109
3	$100,001 - $200,000	$107	$113	$120	$128	$133	$141
4	$200,001 - $300,000	$120	$131	$143	$154	$164	$176
5	$300,001 - $500,000	$141	$157	$176	$194	$210	$229
6	$500,001 - $750,000	$171	$197	$226	$253	$281	$309
7	$750,001 - $1,000,000	$204	$242	$281	$319	$359	$397
8	$1,000,001 - $2,000,000	$287	$353	$420	$486	$553	$619
9	$2,000,001 - $4,000,000	$486	$619	$752	$886	$1,019	$1,152
10	$4,000,001 - $6,000,000	$752	$975	$1,196	$1,418	$1,640	$1,861
11	$6,000,001 - $8,000,000	$1,032	$1,329	$1,640	$1,950	$2,261	$2,572
12	$8,000,001 - $10,000,000	$1,285	$1,684	2,083	$2,483	$2,882	$3,281
13	$10,000,001 - $12,000,000	$1,551	$2,038	$2,527	$3,015	$3,504	$3,991
14	$12,000,001 - $15,000,000	$1,884	$2,483	$3,082	$3,681	$4,280	$4,879
15	$15,000,001 - $20,000,000	$2,417	$3,192	$3,969	$4,745	$5,521	$6,299
16	$20,000,001 - $30,000,000	$3,414	$4,523	$5,633	$6,742	$7,851	$8,961
17	$30,000,001 and over	$4,745	$6,299	$7,851	$9,404	$10,957	$12,372

     Professionals may pay a $400 flat fee, or their respective bracket, it is their choice.

     If you plan on running your business form your home, you may get another permit to allow that, if it will not bring traffic, does not require signage, does not require a commercial vehicle and will not leave business materials in the yard. You may request an exception from the Board of Zoning appeals, the application can be found here, on the City of Augusta's website (http://www.augustaga.gov/index.aspx?nid=309).

     You may apply for a home based business license at the Zoning and Planning Department, located at 525 Telfair Street, Augusta, GA 30901 (706-821-1796), fill out the appropriate applications, and pay a $100 fee.

     Businesses involving the following may need further approval.

• Family Day Cares
• Family Personal Care Homes
• Businesses that sell alcohol
• Caterers
• Hotels and Motels
• Businesses that involve adult entertainment
• Massage Therapists
• Businesses that involve vehicles

Federal Permits and Licenses

Employer Identification Number (EIN)- Employers with employees, business partnerships, and corporations, must obtain an Employer Identification Number (EIN) from the U.S. Internal Revenue Service. The EIN is also known as an Employer Tax ID and Form SS-4. U.S. Internal Revenue ServicePhone: 1-800-829-4933

State Licenses and Permits

Georgia Tax Registration- Businesses that operate within GA are required to register for one or more tax-specific identification numbers, licenses or permits, including income tax withholding, sales and use tax (sellers permit), and unemployment insurance tax. 

     If your business is a corporation, a non-profit, a limited liability company or a partnership (limited, or limited liability) you must register with the following state agency.

     If your business is a sole proprietorship, you do not need to register your business with the state. However, many states require a sole proprietor to use their own name for the business name unless they formally file another name as a trade name, or fictitious name.

Workers Compensation Insurance 

     Businesses with employees are required to carry Workers Compensation Insurance coverage through a commercial carrier, on a self-insured basis, or through the state Workers Compensation Insurance program. Businesses with employees are required to pay unemployment insurance taxes under certain conditions. If your business is required to pay these taxes, you must register your business with your states workforce agency.

Local Permits

     You may be required to apply for permits and licenses from your local government (e.g., city or county). Every place has different requirements. The following are common types of local permits and licenses.

• Business Licenses / Tax Permits - from your city or county clerk or revenue department. Many jurisdictions require a trader's license or tax certificate in order to operate.
• Building Permit - from your city or county building and planning department. This permit is generally required if you are constructing or modifying your place of business.
• Health Permit - from your city or county health department.
• Occupational Permit - from your city or county building and planning development department. This permit is required for home-based business in some jurisdictions.
• Signage Permit - from your city or county building and planning department. Some jurisdictions require a permit before you can erect a sign for your business.
• Alarm Permit - from you city or county police or fire department. If you have installed a burglar or fire alarm, you will likely need an alarm permit.
• Zoning Permit - from your city or county building and planning department. This permit is generally required if you are developing land for specific commercial use.
• Depending on the nature of your business, you may need other types of licenses specific to your business. 

     For assistance in this process, or for other needs of starting a business, contact Morrison Marketing. We will guide you through this fog and help you get your business running as fast and easily as possible. Take the next step start that business. It is closer than you think. 

Choosing a Location

     A location is not as important to some businesses as thought. For example, merchants and large volume service businesses may need a high amount of traffic, but a car detailing shop does not need any foot traffic and only the smallest slice of road signage to attract customers and build a spot in the Augusta's customers mind.

     Augusta has several districts where business has formed and created a synergy with others. Not formal districts made out of voting boundaries, but boundaries built on the use of the building and the economic purpose of the building. The market picks locations for businesses, not the marketeer  real estate developer, business owner or the government, the consumer ultimately votes with their money where they think the best retail location is, the dollar being the ultimate testament to the success of a location, but still hard to single out as the single cause of success or failure. 

     Depending on your business, you may need the large retail space of Downtown, or Central Augusta. You may need the industry setting, with the large power outfitting, the large roads for trucks to turn and such and an adequate blue collar population around to work.

     Lets for example, say that I am trying to start a warehouse business and want to store cold freight on its way through the supply chain for the South-East division of Wal Mart. I need an existing warehouse, there are many in Augusta to choose from, especially on Tobacco Road, and then I will need to fit it for modern cooling technology, which since Augusta has plenty of warehouses and Georgia being a warehousing state, there should be plenty of companies that restore warehouses. Being on Tobacco Road, there is room to expand later on all sides of the warehouse and no complaints from residents, as there are none in the immediate vicinity.

(This building would serve well for storing freight. There seems to be 2 main places for warehouses in Augusta, Georgia. On the East side of the old city, where all the small industrial players, shops and machinists are located, and in South Augusta, where the larger, more modern ones are present. Both serve different purposes and both would need to be evaluated before making a decision. The ones Downtown may be utilized if they have inventory that is used Downtown and in the region itself. The warehouses in South Augusta may be better equipped for large freight movers to use the warehouse as a stepping stone in their larger logistic operations)

     Lets for example, say that I am starting a grilling van that moves around to events and such for Augusta. To pick a main spot to stay and attract a common and consistent group of customers is needed and to pick a spot is hard to come to the conclusion. There is the River walk, with its pristine beauty, but low traffic, there is the Augusta Mall, where plenty of traffic, consuming power and other exists, but maybe the Mall only will let you come for a couple hours on the busiest of times, or maybe on Wrightsboro road itself, next to Daniel Field in the parking lot with permission from Bilo. These locations will all yield different revenues and it is important to find the best one. Personally, I think the best choice in this circumstance is to have a place on the River walk, next to the Marriot and stay there just for the increased business during events, while only going to the mall for a couple hours with pre-cooked food to sell. A second stand at Bilo would be feasible, maybe a smaller one that would serve a lot of the Cops getting on and off duty.

(This is a good example of a rolling burger joint. The lack of bills from a brick and mortar store help the margins in this business and help ensure there is plenty of money for expansion. Small operations like this can double very fast, as their revenue and operations is so small in the beginning and they achieve break even so fast. I think Augusta could use a stand like this, maybe several competing Downtown)

     For another example, lets look at an Accountant who may need an office, moving here from Columbia, SC, our beautiful sister city and the second market for many expansions of Augustinian businesses. An accountant does not necessarily need to be close to their clients, as they will only see them so many times a year, but they do need a "Professional" scene, with the synergy provided by other professionals being in a small proximity. The Accountant has the many options, 3 of them are a historic homea in Downtown and in Summerville, The Lamar Building for a good skyscraper, or a professional suite on the West-side in one of the many professional parks, designed for about 2-3 white collar workers per building and among many other professionals. The Greene Street location seems the best here, with the grand and amazing homes for low rent and the ease of finding the location, I think it is much better than the more expensive Lamar Building and is much more attractive than the cookie cutter houses of suburban office development, seen around I-520.

(1899 Central Ave. previously served as the Alzheimer's Association office until they outgrew the building in 2012. The building has 4 offices, a conference room, a full kitchen, breakfast room/butler's pantry, and a large bonus room/storage closet. The property has been well maintained. A new roof was installed in 2004. New energy efficient windows were installed in 2011, new wiring (2011), and new HVAC system. The building has hardwood floors and security system in place. The grounds have been well maintained. There are 2 covered porches as well. This is being sold as-is.

1899 Central Ave. is located at the corner of Central Ave. and Baker St. with easy access to all of the Augusta market. It is less than 1 mile from GRU's Summerville campus and less than 2 miles from downtown Augusta and the Medical District;Description  from Loopnet.com)

     For another example, lets look at a bakery. Being a restaurant, they can jump into the jungle of restaurants in the Artists Row part of Broad Street and make a name instantly for themselves, but to compete so close with well established restaurants requires an immense fusion of capital in the beginning. To find a less competitive spot, maybe on a side street would be advisable for restaurants who do not have appropriate financing to venture on more grand projects. A restaurant could function very well and profitably if it could come to South Augusta, particularly where Peach Orchard/Gordon Highway/Deans Bridge converge, the area is called Southgate, and brand itself as affordable, but also as a sit down restaurant. The most upscale dining in South Augusta right now is Applebees, a shameful crown holder. The key to the restaurant would be cheap food and easy to cook food. An ethnic food should do well if there is a good mix between good entrepreneurship, good cooking and hard work.

(This Fully-Equipped Restaurant includes a drive-through window, 2 steam tables, 2 deep fryers, rice cooker, oven, full hood, walk-in cooler and freezer, built-in drink cooler and much more. The sturdy brick building is large enough to accommodate 100+ patrons. There are 43 parking spaces and two driveway cuts. There is great signage along the main road. This building was originally a Burger King Restaurant and was converted to an Asian restaurant.

The property is situated along Gordon Highway, in close proximity to the intersection of Deans Bridge. Nearby businesses include K-Mart, McDonald's, Burger King, Waffle House among many more national businesses within 1/2 mile)

Obtaining Financing

     Others People Money is a great strategy for operating a business. If you can get a loan and are 100% sure of heading forward with your business, then you will have a much better shot at succeeding. To have the backing of a bank and the desire of them for you to make profits breathing down your neck is inspiring to work hard, long and effectively. The looming debt of the business loan is forever in your mind and is forever adjusting your schedule.

     To be trusted with several thousands of dollars is no small task and the banks in the Augusta area are not equipped to take many losses on their loans. With the shifting nature of large banks in America, most credit is formed, in Augusta, from small and locally owned lenders, such as Georgia Bank and Trust, who loans over $600,000,000 in a year usually.

     A business owner can try and obtain a SBA loan and a plethora of other loans, but my experience with them is that you generally do not want to rely on these loans. You may get them, and may not, it is important to not base your business and its success solely on whether you get a couple 100 basis points (interest payments) on a business loan. I think the SBA loan program is a good thing to work towards, but many have put to much hope into it and not enough hard work into the core of their business.

     Credit Unions are very strong lenders in the community, considering Augusta has a very fragmented credit unions market. The nuclear, medical, military and super secret military employees here all have different credit unions targeting them. Credit Unions can take on specific loans that others may deem to small, outside their jurisdiction, not enough spread (profit on money borrowed short term and then lent out long term) or not in their area of supervision. That Credit Union may have a banker who was once a truck driver and is loaning a truck driver $1,000,000 to start his own freight hauling business. The banker at the credit Union can ensure that the owner is doing everything, at least partially, to industry standards, which is usually enough for the bank to be happy, they are not expecting a company to triple in a couple years, they just want their interest payments.

Customer profiles of Augusta, Georgia

     The consumer in Augusta, Georgia can almost be broken down into the 5 pillars I have outlined in other areas about the Economy of Augusta. Essentially businesses in the CSRA survive off of the 5 pillars of Augusta's Economy, Military, Medical, Manufacturing, Nuclear and other. SRS, Voglte, the Medical District, large manufacturers and the slice of everything else is the source of all the customers in the CSRA. It is important to think what kind of people they are, what they like, where they are at, how many times will they visit your business and many other aspects. These customer profiles are examples of customers in the CSRA and their particular circumstances.

Jonathan Sapper- Jonathan is a 62 year old Vietnam Veteran. He flown a helicopter for the war and since started a helicopter school in Atlanta and lives in Augusta for the peace, quiet and the lack of traffic. He has an income of around $100,000, from owning the business, a year and Social Security payments of around $15,000 a year and plans on retiring full time and moving to an even more rural part of the CSRA. He has a wife, 3 grandchildren, which he helps support due to tough economic conditions on recent college graduates and 2 dogs. His buying patterns reflect his caregiver status, a recent purchase of a Toyota Prius for his granddaughter, a new laptop for his wife, who has cataracts and needs high quality resolution, and dog food for his 2 German Sheppard's. Jonathan is interested in buying a lot of things, but reads the newspaper, does not watch TV, does not get on the internet and does not participate in social circles. He is a hard person to reach and really would rather stay home than be out spending money.

Mary Beth Vine- Mary Beth is a 29 year old widowed mother of 2 9 year old twins in the city of Augusta. She may be a school teacher at a local high school and her husband died in a tour in Iraq. She was set straight with paying for his funeral, the grief and the bills he left behind. She took the money, bought a modest house, a modest car and has the rest invested. Mary-Beth is the ultimate caregiver, spending all of her income on items for her 2 boys. She ensures that they not only have their nutrition, shelter, food and other basics, but also ensure hedonistic pleasures, like Video Games, Vacations and trips to places like Chuck E. Cheeses.

Barry Maple- Barry Maple is a young diesel engineer in South Augusta. Born, raised, trained and bred for diesel work, he plans on starting a business one day fixing large engines. Barry spends much of his money on his new land, home and car. He has just taken on a lot of debt for his expected income in the future. The bank feels good lending to him, as Diesel mechanic work is consistent and well paying and enduring. Barry Maple spends the little money left over from his new bills on drinking alcohol and meeting woman in the clubs of South Augusta. He also spends some of his money on fixing his truck, a 1985 F-150 on a suspension kit.

Jeffery Lee- Jeffery Lee is an electrician at SRS. He is part of the local union and has been for 3 years. He is a young, 25 year old electrician and is finally making some serious money in his life. He lives with his mother and father and helps them with the bills and with food, being they both lost their jobs permanently in the 2008 recession. Jeffery has a girlfriend, who he is thinking of marrying and they spend a lot of time making pottery and glass ornaments in their side time. Jeffery Lee is very simple and does not participate in many events downtown or even going to restaurants. He values his land that he is to inherit, working in the yard and most of all, being an electrician. He makes about $50,000 a year and spends most of it taking care of his dying parents and living a normal life.

Nareem Baker- Nareem is a barber in South Augusta at 58 years of age. He runs a small one booth barber shop on Peach Orchard and makes about $35,000 a year. He does not cut much hair and is looking to bring on some family members to take over the business. Nareem spends a lot of his free time and money on reading, researching and preaching from the Bible. He travels to churches all over the CSRA and gives sermons on particular parts of the Bible and he wants to one day start a church with some of the customer he cuts hair for. Nareem has barley any consuming power after paying his bills and lives in an apartment on Lumpkin road in South Augusta.

Sandra Pennington- Sandra is a secretary for a large contractor who build hundred million dollar subdivision. She is in charge of making sure the office is running well and works about 60 hours a week easily. She is a graduate of Augusta State University (now Georgia Regents University) and plans on going back to get her MBA one day. She makes well over $100,000 and can pretty much get anything that she wants. she has 4 kids and a husband that teaches physics in the Medical College. Sandra represents an interesting consumer. She has preference for her time and not money, so her buying pattern reflects that. She is pulled by businesses that seem "Fast" and simple. She is always in a busy mindset and is the ultimate type A achiever. Sandra is a caregiver, but her income covers much more than that and goes into the most subtle hedonic pleasures, such as a warmed toilet seat, or a rose stained window. Sandra and her husband live in Martinez and are 100% happy with its location/schools and taxes.

George Summers- George Summers is a 21 year old pesticide applicator for farms in East Georgia, around the CSRA. George works with a new particular non-toxic pesticide that seems to be gaining traction with the agriculture sector. George is the news companies Southeast man and is responsible for operating jobs in this part of the country. the hours are long, the pay is horrible and George is sticking his neck out for this new business. If it does well, he may be rewarded with a senior position. If not, then he will have wasted a lot of time with no result. He makes about $40,000 a year, lives in a South Augusta neighborhood and spends most of his time on the road. He barley spends any money in Augusta, as it usually goes for food and traveling expenses. George has no wife and will probably be a bachelor for the next 10 years.

Ashley Townsend- Ashley Townsend is a 41 year old principal at a local Catholic school. She is paid very low, even for education standards and is more concerned with her work in charity than in compensation. Ashley works a lot, lives in the school and is wholly concerned with its well being. she makes a meager $24,000 after room & board and spends that all on the school itself, whether ensuring that a parent has gas money to drop off, or pick up their child, ensuring that a boy has a new pair of shoes or numerous other calls for charity and kindness. Ashley Townsend is married to a author, who is working on a series of mystery novels that may take off in the future, as they are having renowned success right now.

Matt Tammerhill- Matt is a local solider, at 22 he is young and full of life. He has no bills and 1005 discretionary income. He is not experienced in life, being that he ran way from home and found his way to Augusta in the Signal Corps and has found his career path. He spends a lot of his money on cab rides, alcohol, dining with woman, taking friends to the movies and paying for gas for trips to other cities to do the same thing. Matt is high energy and is looking for a fun business with other young people that share his interest of being wild and young. Matt only makes about $300 a week in disposable income, but it is all put into the circulation of the Economy of Augusta, usually with high margins on the items sold. Matt will get married and move his consumption to the more traditional roles as he gets a family.

Paul Saab- Paul is a 37 year old nuclear engineer at SRS, he builds the pre-fabricated pieces that make up the nuclear reactors in the CSRA. The job is intense and take a lot of stress, the government ensures that the workers do not work more than 40 hours a week to combat fatigue mistakes and Paul spend about another 15 hours a week in meetings and discussing blueprints for new construction. Paul has 5 kids, all girls and a wife, who is a ICU nurse. Paul and his wife make a lot of money, but cannot find time to spend together with their kids, being they work on different time schedules. This rarity makes the trips they do manage to make together as family more consumptive, in dollar terms, than your average similar nuclear engineer and his wife. Paul and his wife are looking for clean places to eat, shops with rare merchandise in them and very cultured and international entertainment, not many kind of local talent meets their very picky standards.

Debra Appletree- Debra is a 27 year old manager at Chick-Fil-a with 2 kids and a husband who works as a policeman in the RCSD. Debra works a lot and is on the way for promotion, she arrives at work early and leaves late. She owns a small house in Central Augusta that is fitting to both her and her husbands needs. He 2 kids are 9 and 7 and attend CT walker, one of the best elementary schools in America and are both very bright from constant good parenting, nutrition and a good school environment . Debra and her husband like to do outdoor activities and enjoy Augusta for that more than anything. It is not important what happens Downtown to them, they do not eat out or go to events. They spend their money on hiking, rafting, biking and other outdoor ventures, usually to blow steam off from their stressful jobs.

Morgan Bessemer- Morgan is a nurse at a pediatric clinic in South Augusta, she is 21 and has just received her certification. She has graduated from Georgia State University in Atlanta with an early program completed and now wants to work in Augusta, Georgia and live close to family. She currently stays with her mom, out of preference, not out of economic need and has a close tie with even the remote parts of her family. She has a boyfriend, who is attending college and graduates next year in computer software design and wants to attend Georgia tech. Morgan makes about $45,000 a year with the advancement and opportunities to make much more being constantly bestowed upon the young nurse. She spends of her money on shopping and making sure she has the best clothes and saves the rest through several bank accounts to try and teach her some fiscal discipline and self restraint. Morgan will move out and buy a huge house one day on "The Hill" and start a large family.

Morrison Marketing
Augusta, Georgia
706-504-5754
MichaelMorrisonAugusta@gmail.com