Having an NH LLC is a better and cheaper option than having other business structures. A limited liability company (LLC) reduces the owners’ personal liability and protects their personal assets. One can start an LLC in two ways, domestic LLCs or foreign LLCs (LLCs in more than one state). By following some basic steps, you can easily form an LLC in New Hampshire.
On this page, you’ll learn about the following:
- How to Start an LLC in New Hampshire
- After Starting your New Hampshire LLC
- New Hampshire Foreign LLC
- Why an LLC in New Hampshire
- Top 3 Businesses in New Hampshire
- New Hampshire LLC Formation Review
How to Start an LLC in New Hampshire
An LLC or a Limited Liability Company is a hybrid business entity combining a corporation’s characteristics with a partnership or sole proprietorship. It separates your personal assets from your business assets, thus giving you personal asset protection. This section gives you a step-by-step guide on how to start an LLC in New Hampshire.
Step 1: Decide a Name for Your LLC
Deciding on a business name is the first step to start an LLC. In New Hampshire, before you name your LLC, it is important to note a few things. Firstly, make sure the name is available to use. If the name is available, then check if the name complies with all the NH business naming requirements. Once you pass through them, you can successfully name your business.
Why do you need a proper business name?
If you want your LLC to have special identification, your company name is essential. However, many people face lots of issues by avoiding focus on choosing a business name for their LLC business formation filings.
Because of this, here are some of the major benefits of choosing the best LLC corporate names.
- To help establish a company’s presence in the market, a proper business entity type will help you. This also creates a new identity that will resemble your LLC.
- After you’ve properly chosen the name for your LLC, you will have no problems finishing the registration process.
- You can only get the EIN number when you have your name registration certificate with you.
Requirements when deciding a name for your LLC
LLC Name Search: A business name search is required to check if the desired name is available or not. If the name is available then the business owner has to fill up a name reservation form and send it to the Secretary of State, New Hampshire. To do the name search, one has to visit the Business Entity Search page on the official Secretary of State website. Send the name reservation form to the below address by mail to reserve your LLC name in New Hampshire. The cost of a name reservation is $15.
Important Quick Links:
NH Department of State
107 N. Main Street, Rm 204
Concord, NH 03301
State House Annex
3rd Floor, Rm 317
25 Capitol Street
Concord, NH 03301
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Step 2: Assign a Registered Agent in New Hampshire
A registered agent, or business entity, is a person that will act or work on your behalf. This person or business will receive significant tax forms, legal forms, formation documents, any internal document, a notice of lawsuits, and other official government correspondence in New Hampshire. Choosing a New Hampshire registered agent for service of process for your LLC is required.
Make sure your registered agents are residents of New Hampshire having a physical street address. It could also be a business with an office address. If the LLCs do not require to provide a physical business address while filing the company, a virtual business address can also work. Here are the recommended agents and employees for you:
Note that availing of the services of professional registered agents would be your best option since you are guaranteed that whoever is handling your legal affairs knows their stuff well. You will enjoy peace of mind and focus only on running your business, as the ‘professionals’ take care of all legal matters.
These LLC formation services are recommended registered agent services as they are authorized to conduct business in New Hampshire. Compare them to check the best yet cheapest option for you. Besides, they can guarantee you professional service because they have been in the business for years.
Step 3: File Certificate of Formation in New Hampshire
A Certificate of Name Reservation is needed to file a Certificate of Formation, as other states call it. You need to make reports of this certificate with the New Hampshire Secretary of State, which costs $100. LLC Cost in New Hampshire includes other fees and taxes. You may file them online or by mail.
This NH Certificate of Formation is a legal document needed to form your business officially. It will indicate details about your LLC in New Hampshire, like if it is a member-managed or managers-managed. LLCs with employees need to check the guidelines from the New Hampshire government portal on how to hire employees.
Before you start filings, you must already have your LLC name and registered agents or employees. You will attach a copy of your Name Reservation Certificate along with a list of the services that your New Hampshire LLC will offer.
How to File Online
Go to the Secretary of State Online Service. Select “non-subscriber.” Fill out the online form. The website will alert you if your county does not support online filings after selecting your principal county. To know more about online filing, visit the New Hampshire Certificate of Formation.
How to File by Mail
If you prefer filing real-life forms for your New Hampshire LLC registration, then you can download the New Hampshire Limited Company Certificate of Formation. Read the form thoroughly and fill it out. It will have to fill, among others, your name, city, state, zip code, and signature. You may also file in person by visiting the office on business days.
Mail To: Corporation Division, NH Dept. of State
107 N Main St, Rm 204
Concord, NH 03301
Step 4: Create Your New Hampshire LLC Operating Agreement
A comprehensive operating agreement is a document that legally outlines the proprietorship and operating procedures of your LLC This document is vital as it ensures that all business owners are on the same page regarding how they operate, thus reducing future conflicts.
When it comes to an LLC operating agreement New Hampshire does not require you to have a comprehensive operating agreement, but it is ideal to have one that contains all your details of business operation. This document would be useful if you decide to dissolve NH LLC later.
Step 5: Filing a New Hampshire LLC EIN
The Employer Identification Number or, simply, the E.I.N. is a nine-digit number given by the Internal Revenue Service (IRS) to make it easier to identify types of business for tax purposes and taxes in general. It is like a Social Security number dedicated to a business’ taxes. The EIN is necessary for any active business or any form of business for that matter.
EIN is needed when the LLC hires employees. Hiring employees in New Hampshire LLC requires specific rules and regulations. One should know about them before hiring employees. EIN for New Hampshire foreign LLC should be obtained if your LLC is based in other states.
To obtain EIN (aka FEIN) one has to fill up a form (Online or by mail) and submit it to the IRS. Before sending the form, ask for EIN Assistant. Enter details of your LLC, and finally complete the form and send it to the address given.
Mail to: Internal Revenue Service, Attn: EIN Operation, Cincinnati, OH 45999
Fax: (855) 641-6935 | Fee: Free
Note: You don’t need a Social Security number when getting an EIN. You can proceed to fill out I.R.S. Form SS-4 and leave section 7b blank. You must then call the IRS at (267) 941-1099 to complete your application. Agents or employees will help you with that.
And that’s all! Congratulation, you are now done with all the necessary steps to form your New Hampshire LLC. If you still haven’t used a professional service from here, I strongly recommend having one to handle the remaining tasks.
After Starting your New Hampshire LLC
After forming your LLC, there are still some things that you will need. Take note of the following:
- Get a company business bank account
- File New Hampshire business permits & licenses
- Get liability for business and professional liability insurance with coverage for employees
- File a New Hampshire LLC annual report or biennial report
- Already existing LLCs that wish to operate in New Hampshire must register as New Hampshire foreign LLC.
This page has provided you with steps to LLC formation and filing processes. You now have to remember upcoming filing deadlines and filing fees or filing costs, including fees for late filings to make sure your LLC is up-to-date.
New Hampshire Foreign LLC
To register a NH foreign LLC, one has to file the foreign LLC formation certificate with the Secretary of State, New Hampshire. Forming a foreign LLC allows you to operate your business in more than one state in the USA as a single business entity. Check NH Foreign LLC to know more about having a foreign LLC.
Why an LLC in New Hampshire
With more than 7,000 new and 40,000 active LLCs, New Hampshire is ranked as one of the top states for providing a good business environment for start-ups. Along with that, the business funding options that a business can enjoy here are enormous, making New Hampshire for LLC far better than other states. On the other hand, having an LLC in NH involves much lesser legal paperwork and processing time than in others. Also, there are fewer tax liabilities. Read more on New Hampshire’s classification of LLC tax.
One can opt for a business credit card in New Hampshire if he has a business license or professional license. This will help them to balance personal and professional expenses. Some of the advantages that a business will enjoy in New Hampshire are discussed below.
No Residency Requirements
It benefits the people who want to start an LLC in New Hampshire but belongs to other states. In New Hampshire, to start an LLC, a person doesn’t have to have a house in the state. It is legally not required for any owner and member to own a house in Hampshire, and without that, only one can start an LLC with all the required licensing and paperwork as asked by the state government.
Section 304-C allows flexibility
According to section 304-C in the bylaws, every member who is a part of New Hampshire LLC will have a fixed share in both profits and losses. This share will be decided based on the contribution that they make during the starting of the LLC.
Brownfield’s Revolving Loan Funds
All the new LLCs that have just started their journey in New Hampshire can participate in this program of the government of Hampshire. Under this program, the selected companies will be pushed by the government, they will help them achieve their goals. For this, they are ready to provide financial help, which is required by most businesses. The CDC manages this program, and the fund is provided by the US Environment Protection Agency, under which every new and eligible LLC can get a loan of up to $600,00.
New Hampshire Opportunity Zone
All the LLC start-ups should know that there are 27 zones in the states that are selected to be a part of the opportunity zone. Government motivates the LLCs to start their business in those areas so that they can also establish well and grow. For that, tax incentives are offered on the investment that is made in those opportunity zones by LLCs in New Hampshire.
Capital Regional Development Council Fund
There are many loans managed by CRDC, which are provided to start-up companies. A maximum amount of $200,000 is provided as a loan to the LLCs who have a unique idea and are looking for funds around.
Top 3 Businesses in New Hampshire
If you look at New Hampshire, then many businesses are established in the state and earning well. But Knowing that New Hampshire is a desirable place for startups, many businesses are established in this state. However, not all of them are making money as others. Covering filing fee, federal taxes, and other additional taxes, LLCs can still make profits and run a successful business in NH. To do so one has to choose the correct industry. Here are the top industries in NH to look for while setting up any type of business.
The advanced manufacturing sector of New Hampshire is known for developing high technology devices and machinery. The industry is enormous enough to pay around 10 % of the whole state’s wages to its employees and has more than 19% of the workforce under them. Toward the New Hampshire economy, the manufacturing sector’s contribution is $9.51 billion, accounting for 11% of the state’s GDP.
Healthcare Sector Businesses
New Hampshire is known for the high-end research institutions and facilities available for the biomedical field. That is why the people are willing to get treated in New Hampshire industry due to the reliable treatments and high-quality services. Also, according to the state’s age statistics, the number of aged people in the state is moré than working-class adults.
All these factors are leading to a boom in the healthcare business. They are now able to contribute around 9% or $9.14 billion to the New Hampshire industry.
The tourism sector of New Hampshire is diverse from ancient times, and the reason behind it is its golden history and scenic views. There are different lake regions and snow-covered mountains with sea coast attracting many people from around the world.
The contribution of this sector is around 3.87 billion dollars which include the accommodation of people, restaurant business, recreational activities, and entertainment. Also, tourism supports the leasing and real estate sector as many properties are owned or leased by people who want to spend their holidays in New Hampshire.
Some best small scale business ideas best for New Hampshire state are:-
- Rubber and plastic production
- Tourist guides
- Daycare and learning classes
New Hampshire LLC Formation Review
Time needed: 5 minutes.
Just to recap, here are the easy guides again when forming an LLC in New Hampshire. Click on the steps in this list to read the full detail.
- Name your New Hampshire LLC
The first thing you must do is to choose a company name, which should be unique, easy to find, and available in the state.
- Choose a registered agent
In New Hampshire, it is mandatory to select a registered agent for your LLC. You can check out our list of our 5 Best LLC Services in the United States.
- File a formation certificate
Filing a formation certificate is necessary when forming an LLC. Depending on the state, it could be called any of the following: Certificate of Formation, Articles of Organization, or Certificate of Organization.
- Create operating agreement
An operating agreement is not a strict requirement but something encouraged when you start an LLC.
- Get an EIN
The Employer Identification Number (EIN), also called Federal Tax Identification Number, serves to identify a business entity like a social security number but for a company.
How Fast Can I Form an LLC in New Hampshire
If you’re wondering “How fast can I form an LLC in New Hampshire?”, you’re in luck! Filing your LLC online is easy thanks to the state’s NHQuick Start website. Processing time typically varies from one to three weeks, but it can take up to six weeks during peak filing seasons. If you’d prefer to file on paper, you can also deliver a completed paper form to the State House Annex in Concord, NH. Forms are processed while you wait.
While you’re incorporating your business, you must still provide a business address. This can be your home address or an address where you store your business records. An LLC must have a physical address in New Hampshire, which cannot be a PO Box. Filing your paperwork in person at a Secretary of State office will give you the quickest turnaround time. Online filing typically takes three to seven business days, while filing by mail can take up to three weeks. The fastest way to form an LLC in New Hampshire is to visit the local office.
Filing your Certificate of Formation with the State of New Hampshire Secretary of State is straightforward. You can file it online or in person at the State House Annex in Concord. Filing online takes just a couple of days, and it can be approved within a week. However, it’s important to remember that delays can happen, so be patient! You don’t want to wait until the last minute to incorporate.
If you are a resident of NH, then you can file your LLC by yourself. However, it is always worth having a professional than doing it yourself to handle legal complexities, paperwork, and other documentation.
Apart from the formation fee of $100 (domestic LLC) and $100 (foreign LLC), LLC costs in New Hampshire include $100 for Annual Reports every year. LLCs are liable to pay sales tax of 0% every year
It takes 7 to 10 business days to get an NH LLC if you file via mail.
Every year all the LLC have to submit an Annual Report and pay $100 to the New Hampshire Secretary of State and renew the LLC. It is mandatory to renew your LLC every year.
Generally, for the LLCs, it is a default tax structure. Once you will obtain the EIN, you will get the various tax structure options to select. Sometimes LLCs choose S Corp to reduce federal tax burdens.
LLCs are easier to establish than other business structures. Small businesses, especially start-ups can easily start their LLC in New Hampshire at a bare minimum cost. LLCs have a ‘pass-through taxation’ advantage for which they are excluded from certain taxes. The formation of limited liability companies requires much lesser documents and legal processes. Share your queries with us, leave a comment below.