A New Hampshire limited liability company (LLC) is preferred by small business owners since it is relatively easier to form. An LLC is considered to be its own entity that separates the personal and business assets of its owners.
After gaining considerable experience as a business consultant specializing in LLCs, I’ll provide a complete guide on how to form a New Hampshire LLC.
Quick Summary:
- To start an LLC in New Hampshire, you are required to comply with statutory requirements and file the necessary legal documents.
- To remain compliant with business laws and maintain good standing with the state, file annual reports and pay corresponding taxes.
- A New Hampshire LLC provides personal asset protection, single taxation and flexible management structure.
How To Start an LLC in New Hampshire
To start an LLC in New Hampshire, there is a state business protocol that has to be followed.
1. Name Your New Hampshire LLC
When you are choosing an LLC name, a New Hampshire Limited Liability Company needs to have a name that distinguishes it from all the other businesses in its field.
Here are a few points you must consider when choosing a name:
- They also must end with one of the following designations: "limited liability company," "limited company," or "ltd."
- The business 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.
Read More: Look Up An LLC in New Hampshire
2. 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 in New Hampshire; 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.
3. 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 $100 for filing the Articles of Organization. Check our article for more information on the cost to start an LLC in New Hampshire [1].
Make sure you have a Certificate of Formation when you form an LLC because the business won't be officially formed until you fill it out with New Hampshire's Secretary of State.
4. Receive a Certificate From the Statutory Agent
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 New 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.
5. Create an Operating Agreement
The New 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 New Hampshire 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
6. Obtain Business Licenses and Permits
In Hampshire, businesses that make a certain amount of money must obtain a New Hampshire state business license.
The New Hampshire Department of Revenue Administration requires you to pay a 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.
7. Get an Employer Identification Number (EIN)
You'll need to get a New Hampshire federal employer identification number (EIN) if you plan on hiring employees and need to withhold Hampshire state income taxes.
This is the LLC equivalent of a personal tax identification number (PTIN).
You can apply for your EIN online or by mail through the IRS (Internal revenue service).
Make sure to complete the LLC's federal tax identification information on your EIN application.
The three main purposes of requiring an EIN are to:
- Open a business bank account
- File and manage all your Federal and State Taxes
- Hire employees to conduct business
Other Steps
To maintain good standing with the state, file annual reports and pay New Hampshire LLC taxes.
New Hampshire also requires LLCs doing business in the state to file a DBA statement, as well as pay Hampshire unemployment taxes and a business enterprise tax.
A limited liability company (LLC) requires you to do the following:
- 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.
Why Start an LLC in New Hampshire?
Starting 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 owning an LLC offers:
- LLCs are not taxed as separate entities, but instead, the profits and losses of the LLC "pass through" to your personal income taxes.
- Starting an LLC means that owners have limited liability for business debts or claims against the business.
- An LLC is easy to set up and you can accomplish it without legal assistance.
FAQs
Should I form an LLC in New Hampshire?
You should form an LLC in New Hampshire if you want a company that is easy to set up and maintain. It is important that you consider all of your Hampshire business needs.
Can a Foreign LLC Do Business in New Hampshire?
A Foreign LLC can do business in New Hampshire by filing the required legal papers and obtaining the necessary licenses and permits.
Can I Form a New Hampshire Single-Member LLC?
You can form a single-member LLC as long as you conform to state requirements.
What Is the Difference between a New Hampshire Domestic LLC and a Foreign Limited Liability Company?
The difference between a New Hampshire Domestic LLC and a foreign limited liability company is that a domestic LLC is locally formed, while a foreign company originates from another state.
How Much Does It Cost to File a New Hampshire LLC Annual Report?
It costs $100 to file a New Hampshire LLC annual report.
Starting An LLC In New Hampshire
Starting an LLC offers many benefits and protections to New Hampshire business owners.
A New Hampshire LLC offers limited liability protection, tax savings, and less requirements to comply with. 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 ZenBusiness, a leader in the industry.
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References:
- https://sos.nh.gov/corporation-ucc-securities/corporation/forms-and-fees/domestic-and-foreign-limited-liability-company/domestic-forms/
