In New Hampshire, a limited liability company, or LLC, is called an "unlimited" liability company because the personal assets of its owners aren't at risk for business debts like they are in a traditional corporation.

An LLC is considered to be its own entity that separates the personal and business assets of its owners.

If a New Hampshire business owner decides to start a New Hampshire LLC, they will need to complete the following steps.

Benefits of Forming an LLC in New Hampshire

Setting up an LLC in New Hampshire provides the owners with the liability protection that a corporation makes, making this type of business structure very attractive to many people. Here are other benefits that are owning an LLC offers:

Name Your New Hampshire LLC

Using a stamp on a document

As with any other business, a New Hampshire Limited Liability Company needs to have a name that distinguishes it from all the other businesses in its field.

They also must end with one of the following designations: "limited liability company," "limited company," or "ltd."

The name must be able to differentiate it from its members; therefore, an LLC can't share its name with any of its members.

When you are choosing an LLC name, make sure it isn't too similar to other registered businesses because there are probably legal consequences if there's confusion among the people who use your business' products or services.

 Here are a few points you must consider when choosing a name:

  • Your name can't include words that might confuse your LLC with a government agency (FBI, Treasury, State Department, etc.).
  • In addition, some restricted words (e.g., Bank, Attorney, University) necessitate further legal documentation and a certified individual such as a doctor or lawyer to be a member of your LLC.
  • The availability of the name in New Hampshire.

Choose Your Registered Agent

An LLC's registered agent is the person who receives mail and official Hampshire state documents on behalf of the business.

The only requirement for a registered agent is that it be someone living or working in New Hampshire, and they must be available during normal business hours.

There is no filing fee to choose a registered agent; however, you should make sure they are available seven (7) days a week, 24 hours per day for legal documents. If you are having problems finding one, you can use a registered agent service to help.

Prepare and File a Certificate of Formation

The LLC's Articles of Organization are filed with the Hampshire Secretary of State.

They include the LLC's name, registered agent, business purpose, and where it will be located in Hampshire.

This is the time to settle if your LLC will be member-managed or manager-managed in your operating agreement.

There is a filing fee of $200 for filing the Articles of Organization. Make sure you have an operating agreement when you form an LLC because the business won't be officially formed until you file it with Hampshire's Secretary of State.

Receive a Certificate From the Statutory Agent

Happy working man receiving document

After you submit a New Hampshire Certificate of Formation to New Hampshire's Secretary of State, they will review it and give you a Certificate of Status.

The Certificate of Status is the LLC's proof-of-formation document that needs to be filed in Hampshire before the LLC can do business or have any legal standing.

The New Hampshire Secretary of State will send the LLC's Certificate of Status once they're satisfied that everything is in order, but it can take them up to 4 months to review your LLC's formation documents.

You'll typically need the following information to prepare your certification:

  • The business name of your LLC
  • Your registered agent's name and address
  • Nature of your business
  • The purpose of your LLC in a short statement
  • Duration of your LLC
  • Your LLC management structure
  • Signature of the business owner (person forming LLC)

The New Hampshire secretary of state will examine your Certificate of Formation when you submit it. If the filing is accepted, the LLC becomes a lawful business entity.

Create an Operating Agreement

The Hampshire LLC operating agreement sets the members' rights and responsibilities as well as the business' ongoing duties.

Members may agree on different LLC rules such as choosing managers for day-to-day operations, drafting member buyout terms, and deciding how much a member must pay to withdraw from the LLC after they've given notice.

Having a detailed Hamshire LLC operating agreement ensures that all business owners are in alignment and minimizes the chance of future conflict.

The following are examples of some of the provisions that may be found in an operating agreement:

  • Your business name and business address
  • Duration of the LLC
  • The registered agent's name and address
  • Forms and documents on the Certificate of Formation
  • Purpose of the business
  • Members and their contribution
  • How profits and losses will be shared
  • The steps for accepting new members and outgoing ones are outlined.
  • The management structure of the LLC
  • Indemnity and liability provisions

Obtain Business Licenses and Permits

Pointing at a document

In Hampshire, businesses that make a certain amount of money must obtain a Hampshire state business license.

The Hampshire Department of Revenue Administration requires you to pay a Hampshire business license fee before they issue the LLC a business identification number.

You must also apply for the following Hampshire businesses licenses or permits:

  • A Hampshire sales tax permit if you're planning on selling goods in Hampshire.
  • A Hampshire withholding tax permit for employees who will be paying Hampshire state withholding tax.
  • A Hampshire unemployment insurance permit if you are planning on having employees in Hampshire.
  • Hampshire buyer's permit for purchasing goods in Hampshire.
  • If your LLC is doing business out of state, then you'll have to apply for a Hampshire non-resident seller's permit. Other examples would be the Hampshire non-resident buyer's permit and Hampshire non-resident use tax permit.
  • The business name of your LLC
  • Your registered agent's name and address
  • Nature of your business
  • The purpose of your LLC in a short statement
  • Duration of your LLC
  • Your LLC management structure
  • Signature of the business owner (person forming LLC)

The New Hampshire secretary of state will examine your Certificate of Formation when you submit it. If the filing is accepted, the LLC becomes a lawful business entity.

Get an Employer Identification Number (EIN)

A small white card with EIN written

You'll need to get a Hampshire federal employer identification number (Hampshire EIN ) if you plan on hiring employees and need to withhold Hampshire state income taxes.

This is the LLC equivalent of a Hampshire personal tax identification number (Hampshire PTIN ).

You can apply for your Hampshire EIN online or by mail through the IRS (Internal revenue service).

Make sure to complete the LLC's federal tax identification information on your Hampshire EIN application, as Hampshire requires this information.

The three main purposes of requiring an EIN is to:

  • Open a business bank account
  • File and manage all your Federal and State Taxes
  • Hire employees to conduct business

Other Steps

While the LLC is not required to file an annual report or pay LLC taxes, other Hampshire jurisdictions may require it.

Hampshire also requires LLCs doing business in Hampshire to file a Hampshire DBA statement as well as pay Hampshire unemployment taxes and a business enterprise tax.

A limited liability company (LLC) allows you to do the following:

  • Obtain the necessary permits or licenses to operate your business, such as health department approvals, zoning permissions, home occupation certificates, and professional licenses. Some states require a seller's permit in order to conduct sales.
  • Fill out an application with your state's tax agency to become a licensed vendor.
  • Establish a business bank account.
  • Apply for a business credit card.
  • Buy insurance for your business.
  • Use a trademark to protect your brand and logo.

FAQs

Should I form an LLC in New Hampshire?

If you are looking to start an LLC, then it is important that you consider all of your Hampshire business needs.

The New Hampshire Department of State offers the New Hampshire LLC kit, which includes guidance on starting an LLC or other types of Hampshire business. It also contains forms and applications for doing business in Hampshire.

How Do I Know if My LLC Name Is Available?

You can find out if your LLC name is available by searching the Hampshire business name database.

How Much Does It Cost to Form an LLC in New Hampshire?

It costs $200 to form an LLC.

Are There New Hampshire Business Taxes I Need to Pay?

Yes, there are New Hampshire LLC taxes you need to pay. New Hampshire LLCs must file a Hampshire state tax every year as well as an annual report.

Can a Foreign LLC Do Business in New Hampshire?

Yes, a Foreign LLC can do business in New Hampshire, and you only need to file and obtain the required permits and licenses.

Can I Form a New Hampshire Single-Member LLC?

No, you cannot form a single-member LLC.

A single-member LLC is not recognized by the New Hampshire state law.

How Do I Dissolve My New Hampshire LLC When I’m Done?

LLCs are required to file a New Hampshire dissolution form with the Hampshire Secretary of State. This will remove your LLC from Hampshire records.

After filling out this form, you'll need to send a Hampshire termination notice to all of your Hampshire members and creditors that hold claims against your LLC.

What Is the Difference between a Domestic LLC and a Foreign Limited Liability Company?

LLC is considered domestic when formed in Hampshire. It is regarded as a Foreign Limited Liability Company when initiated outside of Hampshire.

How Much Does It Cost to File a Hampshire LLC Annual Report?

The cost to file a Hampshire report is $50.

Starting An LLC In NH: Conclusion

In conclusion, an LLC offers many benefits and protections to Hampshire business owners.

A New Hampshire LLC can enjoy limited liability protection, asset protection, Hampshire tax savings, Hampshire reduced compliance requirements, and more. Make sure you get all your business licenses and permits to avoid any liabilities.

If you need help forming your New Hampshire LLC or have questions, contact a Hampshire LLC lawyer today.

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