Buying Georgia Rentals in an LLC: Vesting, Due-on-Sale, and the Series Problem
Program and regulatory figures verified July 24, 2026. Details change; confirm your scenario with us.
Georgia investors hold rentals in LLCs for liability separation, and the state's attorney-run closings make entity purchases routine. Here's how the financing actually works: at closing, after closing, and at fee time.
Closing in the LLC, at the table
On a DSCR loan, the LLC takes title at closing. No workarounds, no deed shuffling afterward: the purchase contract, the loan, and the deed all run to the entity, and you sign a personal guaranty as the member. Georgia adds one wrinkle that turns out to be a feature: closings here are conducted by a licensed Georgia attorney, not a title-company escrow officer, and those attorneys prepare entity deeds and security deeds all day. Bring the articles of organization, the operating agreement, and a certificate of existence, and the closing attorney does the rest. This is the standard structure for serious Georgia landlords, and it's a core reason investors reach for DSCR over conventional once the portfolio matters: how DSCR qualifying works.
The due-on-sale question, answered with the actual rule
Conventional loans are the mirror image: Fannie Mae and Freddie Mac loans must close in your personal name. So what happens when you later deed the property to your LLC? The internet's answer is "the bank will call your loan." The actual rule is friendlier: Fannie Mae's Servicing Guide (D1-4.1-02) treats a transfer to a limited liability company as an exempt transaction (not grounds for due-on-sale enforcement) when the loan was acquired by Fannie on or after June 1, 2016 and the borrower controls or majority-owns the LLC. Freddie Mac maintains a similar provision. Two practical caveats: confirm which agency owns your loan before deeding, and know that you'll generally need to deed back to your personal name to refinance conventionally later. That's lender-guideline information, not legal advice; a Georgia attorney papers the transfer.
Can I set up a series LLC in Georgia? (No, and it matters)
You cannot form a domestic series LLC in Georgia: the state has never adopted a series-LLC statute. This catches investors arriving from Texas, where a single filing shelters unlimited protected series; Georgia offers no equivalent. A series LLC formed elsewhere (Texas or Delaware, typically) can register as a foreign entity and operate in Georgia, but the liability shields between its series are untested in Georgia courts, which is precisely the protection you formed the series to get. Our lending-side note: programs vary on series vesting even where it's valid, and in Georgia the clean, boring answer usually wins: one standard Georgia LLC, or one per property if your attorney advises it, with the math below making that affordable. Structure the entity with a Georgia attorney first, then bring us the org chart and we'll match programs to it.
What does a Georgia LLC cost, and does it owe franchise tax?
Formation runs $100 filed online. The annual registration is $60 total for 2026: the $50 statutory fee plus a $10 online service charge under the Secretary of State's fee schedule effective September 6, 2025, due April 1 each year. Older guides still say $50 or $55; budget $60. On the "franchise tax" question, Georgia's version is called the net worth tax, and it has not been repealed, but the net worth tax only reaches corporation-taxed entities: C corporations, S corporations, and LLCs that elect corporate taxation. A single-member or partnership-taxed LLC holding rentals owes $0 net worth tax, and even corp-taxed entities are exempt below $100,000 of net worth (the tax maxes at $5,000 for the largest balance sheets). Your CPA confirms the election and the filings; the practical answer for nearly every rental LLC is the $60 registration and nothing more. The rest of Georgia's investor tax picture: rental property taxes.
No pressure, no obligation, and no salesy follow-up: a 20-minute call with our team, real numbers, and a straight answer on whether the deal pencils.
Frequently asked questions
Can I set up a series LLC in Georgia?
No: Georgia has no series-LLC statute, so you cannot form a domestic series LLC here. A Texas or Delaware series LLC can register as a foreign entity and operate in Georgia, but the liability separation between its series is untested in Georgia courts. Most Georgia investors use standard LLCs instead; have a Georgia attorney structure it.
Can I buy a rental property in an LLC in Georgia?
Yes: DSCR loans close with title vested in the LLC at the table, personal guaranty behind it, and Georgia's closing attorneys treat entity closings as routine. Conventional loans can't close in an entity, so investors who want LLC title from day one use DSCR or other business-purpose financing.
Will transferring my rental into an LLC trigger the due-on-sale clause?
For Fannie Mae loans acquired on or after June 1, 2016, a transfer to an LLC the borrower controls or majority-owns is an exempt transaction under Servicing Guide D1-4.1-02, not a due-on-sale event. Freddie Mac has a similar rule. Confirm which agency owns your loan first, and use a Georgia attorney for the deed work.
Does my Georgia rental LLC owe franchise tax?
Almost certainly not. Georgia's net worth tax still exists but only reaches corporation-taxed entities; a single-member or partnership-taxed LLC owes $0, and even corp-taxed entities are exempt below $100,000 of net worth. What every Georgia LLC does owe is the annual registration: $60 total for 2026, due April 1. Your CPA should confirm your entity's election.
Mike Certo · NMLS #260555 · Cornerstone First Mortgage NMLS #173855 · Equal Housing Lender. Educational content, not a loan commitment and not legal or tax advice. City STR rules, tax figures, and filing fees change; verify current requirements with the city or county, your CPA, or a Georgia real estate attorney before you buy. Loans are subject to buyer and property qualification.