How to Form an LLC in New Hampshire: A Comprehensive Guide for New Business Owners

When you decide to start a new LLC in New Hampshire there will be a list of requirements to make sure you are following and meeting to keep your business in good standing. It usually is a useful tip to create a checklist for your new LLC to ensure you are not missing anything that is required of you for forming your LLC the correct way. This checklist for a New Hampshire LLC will typically include:

1. Choosing a business name - Your business name will need to be unique and distinguishable from other active businesses in the state as well as including a designator such as "LLC" or "Limited Liability Company".

2. Appoint a Registered Agent - A registered agent will be required by all LLCs in New Hampshire and this person will be responsible for receiving any service of process or important notices sent to your business by a court or by the Secretary of State.

3. Submit your Articles of Organization - This will be the document that officially forms your New Hampshire LLC and will detail the business information, registered agent information, and ownership information.

4. Draft an operating agreement - Your operating agreement will outline the roles and responsibilities of the members of the LLC, as well as detailing how certain processes are handled internally within the business.

5. Obtain an EIN - An EIN will be issued to your business by the IRS and will act as a social security number for your business. This will be used when filing taxes, hiring employees, or opening a business bank account.

6. Open a business bank account - A dedicated business bank account will be needed for having a clear separation of your personal and business finances, and will strengthen the liability protection that is offered to owners of an LLC in New Hampshire.

7. Maintain ongoing good standing - The good standing of your LLC will include keeping your business information up to date, filing annual reports on time, and registering for any specific business licenses that are required by the industry you are operating in.

This guide will cover the steps to take and tips for new business owners to set their business up correctly. You can choose to complete this process on your own or you can hire a service like Firstep to do this for you. Either way you choose, you can use this guide to understand the steps to take and tips for how to complete the process of forming a new LLC.

Step 1: Choosing a Business Name

The first step of forming a New Hampshire LLC will be to choose a business name. In New Hampshire, they require your business to include a designator such as "LLC" or "Limited Liability Company". When it comes to deciding on a name that is available, it can be helpful to use the New Hampshire business entity search as you are brainstorming to help determine what business names are in use currently and what is able to be used by you. In New Hampshire, if an LLC has been dissolved then the state will hold the name for up to 120 days. This will be the case whether you personally dissolve or if your business has been administratively dissolved the the state of New Hampshire.

The name you choose for your LLC will be important as this will be the first thing potential customers see when interacting with your business. It is helpful to have a name that relates to the products and services you offer as this makes it easier to remember your business which makes people more likely to be repeat customers.

In New Hampshire you are able to file a name reservation for $15, which will hold the name for up to 120 days. This can be useful if you find an available name but aren't ready to form your LLC right away. These reservations can not be renewed, so after the 120 days have expired the name is at risk of being taken.

Step 2: Appoint a Registered Agent

All LLCs that are formed in New Hampshire will be required to have an active registered agent. Your registered agent will be responsible for receiving any service of process or important notices sent to your business by the Secretary of State. This will be things like notice of a lawsuit against your business, or updated guidelines for LLCs that the Secretary of State is informing you of. You can appoint anyone for this role as long as they meet the registered agent requirements that are in place. These requirements include:

• 18 years or older

• Have an active physical address in New Hampshire (PO boxes do not count)

• Be available during regular business hours (Monday-Friday 9am-5pm)

If someone meets these requirements listed above then you will be able to appoint them as your registered agent. You can either choose to act as your own registered agent, choose a friend or family member, or you can hire a registered agent service like Firstep to act in this role. Hiring a service can be helpful especially if you are a mobile business owner or you have multiple locations to be at each day, as being at your listed address during regular business hours can be difficult. To keep your business in good standing, you will need to keep your registered agent information active and updated, and if there are any changes to your registered agent you will need to file a registered agent change so your business information listed on the state website reflects the correct information.

Step 3: Submit Your Articles of Organization

With your business name chosen and a registered agent in place, you are now ready to submit your Articles of Organization to officially form your LLC in New Hampshire. To do this you will need to go to the New Hampshire business website and choose to create a new business under the business services tab, then select to form a Limited Liability Company. This will take you to the Articles of Organization form to fill out with your business information. This form will ask:

• The name of your LLC you have chosen including the designator

• Select your NAICS code, which is your business's main purpose

• Enter your registered agent's information and address information

• Choose if your business is member managed or manager managed

• Choose the duration of the business, typically will be perpetual unless you have a certain date you would like the business to be terminated

• Enter the business email address and phone number

• Enter member/manager information including the first name, last name, and address

• Submit the principal office address information

• Certify the document by providing a signature

• You will then be taken to a review page to check that all information you have entered is correct and there are no mistakes

• Proceed to the payment section, and pay the online filing fee of $100

• After entering the payment information, you will now have to wait for the New Hampshire Secretary of State to review your submission which typically will take around 10-15 business days

You will need to wait for your Articles of Organization to be approved to officially start business operations. As mentioned above, this process will usually take around 10-15 business days for the state to review and approve. Once this has been approved, you will receive an email to the address provided on your formation documents with notice of approval and a copy of your certified documents. You are able to complete this process on your own or you can hire a service like Firstep to handle this whole process on your behalf.

Step 4: Draft an Operating Agreement

Now that your Articles of Organization is approved a highly suggested next step will be to draft an operating agreement for your LLC. This document will outline the roles and responsibilities of the owners of the business, as well as help strengthen the liability protection that is offered to business owners. Also, this will clarify the roles of the owners and how the business will deal with certain processes within the business like members joining and leaving the business, and the internal guidelines for making major decisions.

You will not need to file the operating agreement with any federal or local level government as this document will be used mainly for internal purposes. Be sure to save this document in a safe place as you may need to present this when you are planning to open a bank account or are dealing with outside vendors. This operating agreement can be updated as needed, but its important to save the most recently updated version of this document.

Step 5: Obtain an EIN (Employer Identification Number)

Along with getting an operating agreement you will also need to get an EIN for your LLC. An EIN will be issued to your business by the IRS and will act as your business's social security number. This will be used when you are filing taxes, hiring employees, and opening a business bank account. An easy thing about an EIN is that you do not have to renew this, ever. EINs do not expire and will only be issued to each business one time. However, if you do forget this number or lose the documentation for it you will need to retrieve your number from the IRS which can be a lengthy process.

Whether you choose to obtain your EIN on your own or hire a service like Firstep to handle this process for you, it will need to be done after you have formed your LLC. The information you enter into the IRS submission will need to be exactly what is shown on your Articles of Organization to ensure this number is given out to the correct business.

As mentioned before, you can retrieve an old EIN from the IRS if you have gotten this before but have forgotten the number or lost the documentation for it. This process can take awhile, as the IRS does not give any specific processing times. Because of this it's important to take care of this, if needed, before tax season or trying to open a business bank account as this will only delay these tasks. Firstep can both obtain a new EIN and retrieve an old one on your behalf, so whatever step you are at we are able to easily get the EIN for you.

Step 6: Opening a Business Bank Account

After you have obtained an EIN, operating agreement, and have received the approval of the formation of your New Hampshire LLC it will be beneficial to open a dedicated business bank account. This will ensure the separation of personal and business finances and strengthen the liability protection that is offered to LLC owners. The liability protection, also referred to as the corporate veil, will protect your personal assets like your savings or home from any lawsuits or significant debts that your business might incur. If these were to happen, debt collectors and courts are only able to go after your LLCs assets and not your personal assets. This protection is a huge advantage and will be needed not only for peace of mind but for the actual protection of your assets.

Keeping your personal and business finances separated is one factor that goes into these protections, but it is commonly the easiest to get mixed up. Having a single bank account that is only used for business transactions allows you to easily track the funds of your LLC and be able to know how much money you have available, where it came from, and where your business's money is going. It can be difficult to go through and decipher which transaction is personal or business related if you are using a personal bank account to handle all your finances, and this can lead to the piercing of the corporate veil. If this does happen, or if your business is found to be engaging in illegal activities, the corporate veil will be "pierced" and your personal assets will be at risk.

Another added benefit of having a dedicated business bank account will be the added credibility that these will give your LLC when dealing with outside vendors, partners, or investors. Instead of making payments out to yourself and your personal account, these partners can make payments out to your actual business and this will typically be more encouraging when dealing with a new partner.

Whether it is for the clear separation of finances, ease of preparing taxes, increased protection of your personal assets, or added credibility for your LLC, opening a business bank account is something that every new LLC should make sure they do. These accounts will be very commonly used, beneficial to business owners, and offer many advantages throughout the lifespan of the business.

Step 7: Maintain Ongoing Good Standing

All LLCs that are formed in New Hampshire will be expected to submit annual reports each year to renew their business registration, as well as update any information related to their business that might have changed since their last report. Along with your annual report submissions, you may also need to register for any business licenses that are required by the industry you are operating in.

Annual Reports

LLCs in New Hampshire will need to make sure to submit an annual report each year in order to update their business information, registered agent information, and ownership information. Even if there are no changes to this information, you will still need to submit these to confirm there are no changes and stay in good standing with the Secretary of State. These reports can be filed online by going to the New Hampshire Secretary of State website, choosing the option to file an annual report and searching your LLC by the name or the business ID number. If you currently are due or owe for any reports you will be prompted to file these here. Firstep can also file these for you each year and ensure your business does not miss any deadlines.

Annual reports for LLCs in New Hampshire will need to submit these filings by March 31st each year and the fee to file online will be $102 if filed on time before this due date. If you do forget to file your annual report you risk your business not being in good standing, which can lead to administrative dissolution and you will need a reinstatement. These incur additional fees and fines onto your business and can be costly, so be sure to submit your report by your due date to avoid these.

Business Licenses

Along with submitting your annual reports each year, you may also need to register for certain business licenses that are required by the industry your LLC is operating in. New Hampshire does not require a general business license, however specific industries might require a certain license to operate legally. Industries like accountants, healthcare, law, and construction are all industries that will typically require some type of licensing to legally offer their services to customers. These are done at the local government level and will vary based on your situation so be sure to make sure if these are expected for your business to do or not.

FAQs on New Hampshire LLCs

Where can I go to submit Articles of Organization and file annual reports for my New Hampshire LLC

You can go to the New Hampshire Secretary of State website to complete both these tasks if you choose to do this on your own.

Can I form an LLC in New Hampshire if I don't live in the state

Yes, you can still form an LLC in New Hampshire even if you don't live in the state. However, you will still need to be able to provide a registered agent that meets all the requirements for this role to get your application approved. If you aren't able to be your own registered agent, you can choose to have a trusted friend or family member act in this role for you or you can hire a registered agent service like Firstep to handle this for you.

When are annual reports due for LLCs in New Hampshire

New Hampshire LLCs have a set due date of March 31st for their annual reports.

Are operating agreements legally required to be in good standing in New Hampshire

No, operating agreements are not required by law to be in good standing for LLCs in New Hampshire. However these are highly recommended as they make it easier to stay in good standing and make the operations of the LLC run more smoothly and have clearly defined roles for the members or managers.