If you have just started a small business in New Hampshire, forming an LLC is a great way to enjoy tax benefits and protect your personal assets. Suppose you’ve never registered an LLC. In that case, you’re probably wondering where to start.
We’ll provide you with all the information you need on how to start an LLC in New Hampshire in this comprehensive guide.
|State||New Hampshire||Massachusetts||Maine||Vermont||US Average|
|LLC Filing Fee||$100||$500||$175||$125||$130.38|
|LLC Annual/Biennial Fee||$100 (every year)||$500 (every year)||$85 (every year)||$35 (every year)||$89.34 (every year)|
|Corporate Tax Rate||7.60%||8.00%||3.50-8.93%||6.0-8.5%||5.60%|
|Nominal GDP per capita||$70,729||$91,129||$55,425||$56,028||$64, 773.08|
Before You Set Up An LLC In New Hampshire
Setting up a business is easy, but that doesn’t mean you should do it without a plan. Create a business plan before you register your business so that you have some sense of direction.
Starting an LLC in New Hampshire without setting goals and having an idea of the steps you will take to reach those goals is a recipe for disaster.
What Does It Cost To Start An LLC In New Hampshire?
The most pressing questions aspiring business owners have is “how much to start an LLC in New Hampshire?” and “how to start an LLC in New Hampshire for free.” Unfortunately, you cannot set up an LLC for free.
You will need to pay a minimum amount of $100. This is given to the Department of State when filing the Certificate of Formation.
Furthermore, if you wish to reserve a business name, a $15 fee will apply. You may also need to pay an additional fee to a registered agent, and should you choose to use a name other than the business name your company is registered with, a further $50 fee is payable.
Moreover, you can also request a letter of good standing from the Department of State after paying $7 for an online application or $5 for an application via mail.
Steps To Start An LLC In New Hampshire
Follow this step-by-step guide to set up your LLC in New Hampshire:
Pick A Name For Your LLC
According to New Hampshire law, all LLCs must have a name that includes the term “Limited Liability Company” or the acronym “L.L.C.,” or a comparable abbreviation.
It must be different from the names of any commercial enterprises already on record with the Corporation Division of the Secretary of State in New Hampshire. To determine whether the name you’ve chosen is still available, you can check the business name registry on the Secretary of State’s website.
When you file an Application for the Reservation of a Name with the Secretary of State, you can secure a name for a maximum of 120 days. The petition must be sent through the mail, and the cost of filing is $15.
At this stage, it’s a good idea to think about your domain. Even if you don’t need one right away, you’ll likely need one soon. Before you finalize the name of your LLC, you should always check to see whether the domain is available.
You can do this by typing out your name and adding “.com” (or the domain of your choosing) in the address bar. If you see the URL name in the search results, it’s probably a good idea to choose another name.
Find A Registered Agent In New Hampshire
Next, you’ll need to find an agent. Every limited liability company in New Hampshire must have a registered agent. This person or company agrees to take official documents on behalf of the company if it is sued, but who can be a registered agent in New Hampshire?
The following people or entities may be listed as agents for LLCs in the state:
- A New Hampshire resident
- LLCs, corporations, or limited liability partnerships that are allowed to operate in the state
- A registered agent on the Security of State’s website
You will need to include the name and address of your agent when filing the Certificate of Formation.
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Certificate Of Formation
This certificate is the official document that establishes your LLC in New Hampshire. Once you have filed this document successfully, you will be the owner of a newly formed limited liability company.
Here’s some of the information you’ll need to include in the Certificate of Formation:
- The name you’ve chosen for the LLC
- Information about how the company will be managed (list of members and/or managers)
- What the nature of the business will be
- The name of the registered agent
- Information about the company (physical address, email address, and contact number)
Create An Operating Agreement
In New Hampshire, implementing an LLC operating agreement is not mandatory, although it is strongly recommended. An operating agreement is a document implemented within a company that details the rules that govern how the LLC will operate.
It outlines the roles, rights, and obligations that all members and managers have, as well as how it will be governed.
Putting an operating agreement in place can also help you keep your limited liability status by indicating that your company is a separate legal organization. If you choose not to implement an operating agreement, your LLC will be governed by state law.
Get An EIN
Suppose your company employs staff. In that case, it will need to have an IRS Employer Identification Number (EIN).
However, if you create a one-member limited liability company, you will only need to get an EIN if it will have workers or if you choose to have it taxed as a corporation rather than a sole proprietorship.
An EIN can be obtained by filling out an online EIN registration on the IRS website. There is no charge for filing.
|Did You Know?|
If your company sells goods in New Hampshire, you won’t have to pay sales tax.
The Forms You Need To Register An LLC In New Hampshire
Here’s a list of the forms you may need when creating an LLC in New Hampshire:
- Certificate of Formation
- Foreign LLC Certificate of Formation
- Form 1065 Partnership Return
- Schedule C Form 1040
LLC Taxes In New Hampshire
LLCs are subject to federal and state tax in New Hampshire.
State taxes include unemployment insurance tax, which provides temporary relief to those who have lost their job, and business tax.
LLCs are classified as pass-through organizations in most states, meaning they are not subjected to business income tax. Members of an LLC are given their portion of the firm’s revenues straight from the company and subsequently pay state income taxes on their earnings.
New Hampshire, on the other hand, does not compel LLC members to pay income tax on their earnings from their business. Instead, limited liability companies with gross revenue of more than $50,000 are subject to a flat 8.2 percent tax.
Federal law requires the managers or members of an LLC to pay a self-employment tax. The Federal Insurance Contributions Act (FICA) is in charge of administering this tax, which finances Medicare, Social Security, and other benefits. This tax rate is now 15.3 percent.
How Long Does It Take To Form An LLC In New Hampshire?
The time it takes to form a limited liability company in the state depends on the method you choose when filing a Certificate of Formation. It will take between three to seven business days if you choose to do it via the online portal.
However, if you file via mail, you can expect to wait longer. You will have to wait three to five weeks.
What Does It Cost To Run An LLC In New Hampshire?
All New Hampshire limited liability companies and foreign LLCs allowed to do business in the state must submit an annual report. The Secretary of State must acquire the report before April 1st each year, and the cost of filing is $100.
What To Do After Formation?
Setting up your LLC is the first step in building a successful business and brand. We’ve devised a list of tips to help you take your company to the next level.
- Create an eye-catching logo. This will help set your brand apart from the competition, build trust and communicate professionalism to your target audience. It might be a good idea to hire a professional graphic designer to do this for you.
- Build an online store or website. All businesses today must have a strong online presence to thrive in competitive markets. This is why you should pay special attention to creating your website or eCommerce store.
- Bank account. It is crucial to separate business and personal transactions, so setting up a business account should be one of the first things you do.
- Business insurance. Ensuring that your business is covered if something were to go wrong is another important first step.
- Annual reports. You will need to file an annual report to the state every year. This must be done by April 1st each year and costs $100, so it is a good idea to prepare for this in advance.
It is important to take the time to complete all the necessary steps listed above to ensure your business is a success.
Resources To Start A Successful LLC In New Hampshire
In a hurry? You can find the resources you’ll need to set up your LLC in New Hampshire right here.
- Find a registered agent
- Business name database
- Web portal to file Certificate of Formation
- Certificate of Formation for a Foreign LLC
- Obtain an EIN
- Register for business tax
- File your annual report
Start Marketing Your LLC In New Hampshire
Once you have successfully created your LLC, it’s time to start marketing it and growing your leads, sales, and revenue.
The first step you should take is to build a search-engine-optimized website or online store. This will help you rank highly on search results and help you reach your intended audience.
Next, concentrate on attracting organic traffic to your website by posting useful content, building links, and more. It is a good idea to enlist the help of a professional marketer to help you devise a strong marketing strategy to help you grow your new business.
How To Dissolve An LLC In New Hampshire
If you decide that it is time to dissolve an LLC, you will need to complete and submit a Certificate of Cancellation to the Department of State (DOS) either in person or by mail.
In just a few steps, you can become the new owner of a limited liability company in New Hampshire. There are many benefits to creating an LLC, but some of the most prominent include protecting your personal assets and enjoying tax benefits that you simply would not get with a sole proprietorship.
Keep in mind that setting up the company is just the first step on your journey to owning a successful business in New Hampshire. You can follow the tips we have offered to ensure that your business grows.
If you’re hoping to set up an LLC in another state, please browse our website’s list of how-to guides!