2024: Doing Business In Georgia, USA
Part 1: Doing Business in Georgia, USA
What is the current business climate in your jurisdiction, including major political, economic, and/or legal activities on the horizon in your country that could have a big impact on businesses?
For the tenth year in a row, Site Selection magazine has recognized Georgia as the best state in the United States to do business. Georgia has a very pro-business government, and the Metro Atlanta area is adding 100,000 new residents each year. The new residents of Atlanta enjoy a low-tax environment, great weather, the advantage of the Blue Ridge Mountains, which are two hours north of Atlanta, and a vibrant seacoast stretching from Savannah to Kingsland, which is approximately four to five hours by car from Atlanta. Atlanta is home to the most efficient and busiest airport in the world, which in 2023 had more than 104,000,000 passengers fly in and out of the airport, which is also the headquarters for Delta Air Lines. Atlanta is fortunate to be the headquarters city for more Fortune 500 companies other than New York City and Los Angeles, and 440 of the Fortune 500 companies have facilities in the Metropolitan Atlanta area.
From what countries do you see the most inbound investment? What about outbound?
From Europe: Germany, France, Switzerland, United Kingdom, Netherlands, and Italy. And from Asia: Korea, Japan, Singapore, Taiwan, and China.
In what industries/sectors are you seeing the most opportunity for foreign investment?
Opportunities: Georgia's fast-growing economy presents tremendous opportunities for new companies, particularly in fintech, data processing, AI, research, and development, with a very diverse workforce.
The automotive, electric vehicle, and supplier industry, including batteries, tires, and other automotive parts, represents a number of projects underway or planned for the future. Kia, Hyundai, Q-Cells, Mercedes, Rivian, and Porsche have made recent major investments in Georgia.
Other significant industries in Georgia are Aerospace, agribusiness, defense, energy (solar farms), life sciences (medical equipment and supplies, pharmaceuticals, and medicines), logistics and supply chain, manufacturing, and software/technology. Georgia is home to several headquarters, including Coca-Cola, UPS, Home Depot, Delta Air Lines, Norfolk Southern Railroad, and the Southern Company.
Georgia has a robust environment for entrepreneurs and small businesses. Research and development initiatives and investment are actively pursued at Georgia colleges and universities, and startups have increased venture capital investments by nearly $2 billion in 2021.
Metro Atlanta, with more than 6,600,000 residents, is now the sixth largest Metropolitan city in the United States.
What advantages and pitfalls should others know about doing business in Georgia?
Advantages:
-Second largest workforce in the Southeast – 5.3 million labor force
-Number one workforce training program in the country – Quick Start
-More than 80 accredited public and private colleges and universities across the state.
Georgia Tech is a powerhouse in engineering (graduate programs):
#1 Industrial
# 2 Civil and Biomedical
#4 Aerospace and Chemical
#5 Computer, Electrical and Mechanical
The University of Georgia - #2 in the USA for new products to market (e.g., poultry vaccines, healthcare software, various AgTech) and outstanding Law School
Georgia has a vibrant international community:
-representation from 72 foreign governments (consulates, trade commissions and bi-national chambers of commerce),
-A diverse population is served by international schools, markets, restaurants, festivals, and cultural events.
Top countries by investment: South Korea, Japan, Germany, Canada, Switzerland, France, United Kingdom, Netherlands, Taiwan, China, and Singapore
Top 10 Countries with Facilities in Georgia: United Kingdom, Germany, Canada, Japan, Netherlands, Switzerland, France, Italy, Taiwan, and Korea.
International businesses located in Georgia: Boehringer Ingelheim, Hapag Lloyd, Hyundai, Kainos, Kerry Group, KIA, Kubota, Lidl, Luxottica, Mercedes, Mitsubishi, Porsche, Q-Cells, SK, Sony, Taurus, ThyssenKrupp, UCB, and YKK.
(Information gathered from The Georgia Advantage booklet from the Georgia Department of Economic Development.)
Although this is not a "pitfall" unique to Georgia or the southeastern USA, the emergence of the new USA federal Corporate Transparency Act is a relatively new development in the USA that foreign clients need to consider. The Corporate Transparency Act (the "CTA”) is a federal law enacted in 2021 to combat money laundering, terrorism, tax fraud, and other illegal activities. Starting January 1, 2024, the CTA requires a substantial number of business entities to report information regarding their "beneficial owners” to the Treasury Department’s Financial Crimes Enforcement Network ("FinCEN”). The CTA will primarily impact smaller entities not otherwise subject to federal oversight but also larger organizations made up of multiple subsidiaries or single-purpose entities.
What is one cultural fact or custom about your country that others should know when doing business there?
Since the USA is so diverse, there is a general practice of always respecting other cultures and people’s differences, especially when communicating and expressing your ideas.
Part 2: About Your Firm
What distinguishes your firm from others in your market?
Miller & Martin has the most robust and successful economic development/incentives practice in the Southeastern U.S., providing international companies with tax incentives in connection with new economic development projects. Our clients take advantage of the financial benefits from these negotiations, which provide a magnificent return on investment in legal fees. Our incentives practice is most active in Georgia and Tennessee but covers all states in the Southeast.
Miller & Martin provides a competitive advantage with experienced partners specializing in cross-border transactions, and we have a well-earned reputation for providing efficient and effective legal services, contributing to the success of our clients. Many of our partners began their practice with multi-national law firms before transitioning to Miller & Martin. Our partners have experience and expertise in cross-border business transactions and are responsive, versatile, and professional. They enjoy establishing strong personal relationships with their clients.
What are three words that describe the culture of your firm?
Collaborative, Collegial, Inclusive
How does your firm participate in Corporate Social Responsibility (CSR) and/or Environmental, Social, and Governance (ESG) initiatives?
Miller & Martin serves and supports our community, and by doing so, we enrich the quality of life for everyone. Our attorneys and staff lead many civic and charitable institutions.
We recognize, encourage, and support our colleagues’ contributions to our communities, enriching the lives of others. We impact real world concerns, including children's issues, education, housing and health issues, the arts and more. The Atlanta office annually participates in the Georgia Legal Food Frenzy, providing meals for the Atlanta Community Food Bank.
Beyond our involvement in bar associations and civic organizations, we encourage our attorneys to participate in pro bono matters for individuals who cannot afford legal services. We believe that we have a duty to contribute to the welfare of the communities where we live and work, assist in the development of the legal profession, and broaden the overall commitment to access to justice for all people.
Are there any new and exciting initiatives, practice areas, or industry focuses in your firm?
In addition to our internationally recognized incentives practice, we recently established a Resort & Hospitality practice. We were actively involved with the Georgia General Assembly in its approval of a production tax credit for the motion picture and television production industry, which established Georgia as the "Hollywood of the South.” Over the life of this tax credit, more than $4.4 billion has been spent in Georgia in the TV and film industry. In certain years, there have been more movies and TV productions in Georgia than anywhere else in the United States, including New York and Los Angeles. Miller & Martin also has very strong Corporate, IP, and Litigation practices and recently established a robust Trusts, Estates, and Wealth Management practice with a special focus on international investors.