There are different options to set up a business entity in the US, including sole proprietorship, partnership, corporation, and LLC. The most popular and convenient form for this purpose is probably the latter, which stands for limited liability company. It has several distinctive features that entrepreneurs find advantageous compared to other forms of business organizations. For more details read our comprehensive guide.
Generally speaking, a limited liability company allows all the owners to keep their personal financial assets safe from any challenges that sole proprietorships or partnerships may face. For example, if a business entity fails or files for bankruptcy, the LLC members will not be liable for the company’s shared debts. Neither will they have to cover them independently. If the company runs into a lawsuit, the owners can also avoid participating in it directly and protect themselves and their families from potential legal penalties.
The legal document that helps the members overcome such problems is the operating agreement. It establishes their rights and obligations, as well as proves the company’s legitimacy. The covenant also includes terms of its management and outlines its standard operating procedures that the members decided to agree upon. They are more concrete and specific to the company business to avoid conflicts due to ambiguous wording in the future.
Different states have their own rules and peculiarities regarding whether to fill out the Operating Agreement. The state of New Hampshire does not require the local business owner to do so, but we suggest having the form completed and adequately signed for your peace of mind. Moreover, we offer you our smart form-building software to construct the paper quickly and effortlessly using your personal data.
In New Hampshire, all LLCs’ activities are governed by New Hampshire Revised Statutes Annotated (Chapter 304-C). In its numerous sections, you can find all related state definitions, peculiarities, and guidelines for acting in different situations. The Chapter also contains information about the records needed to implement a particular procedure and the fee charged for its realization. However, it can be difficult and might take too long to read the document thoroughly. Therefore, we have put together a comprehensive guide on LLCs, outlined the key points, and added their fundamental characteristics.
According to the mentioned law, a limited liability company can be considered as such if it is formed under this legal act. It should be separate and distinct from its members, meaning that it should have legal single-entity status.
The number of members engaged in the company is not limited, starting at one. Besides, not just individuals can own it; multiple business entities can also do. Furthermore, one of the members doesn’t need to manage the company alone because hiring a particular person for a managerial position is possible. Regardless of the form, membership type, or even the management method, you should indicate everything in the operating agreement.
Several features characterize any LLC. Below, we emphasize them for you to understand why this type of company is sometimes more preferable than others.
Creating an LLC in New Hampshire is not a complicated process, especially if you follow our step-by-step guide prepared for you to make it more convenient and effortless. Please check it out below.
Make Up a Proper Company’s Name
The first step is to find the name for your company from the options that nobody used before. It should be unique and distinguishable for the general public to recognize you among other companies. Besides, note that it should not repeat the names of any government agencies to avoid confusing people.
The given Chapter of New Hampshire Statutes includes some naming rules to follow. For example, you should name your company with the words “LLC” or “limited liability company” to indicate your type of business. Besides, do not use the words “University,” “Bank,” or others implying professional organizations if you do not provide respective services and do not have licensed personnel.
Assign a Registered Agent
Apart from the proper name, you need a person who will connect you to the Secretary of State, also known as a Registered Agent. They can either be an individual or business entity but should have a residence or operate in New Hampshire. You can look through the exceptional services to find the one you prefer, choose one from your company, or be an agent yourself.
This position is necessary to inform company administration about official notices, receive important correspondence, and send reports and other forms required by the State.
File the Certificate of Formation
This is the next document to complete if you want to register your company. It essentially allows you to legally form the entity by filling it out and sending it to state authorities.
The paper should contain necessary information about the company’s name, its members, contact, and address details. Also, indicate the services you will provide, your registered agent, and their contact data in particular sections.
Filing the Certificate will cost around $100, and it is possible to do it by mail or email. However, the latter takes less time to approve.
Fill Out the New Hampshire LLC Operating Agreement
Later on, you need to fill out and sign your operating agreement. As we have already explained, it is crucial to have this form at hand to avoid financial and other challenges in the future, although the State of New Hampshire does not obligate the residents to do it.
Apply For the Federal Tax ID Number
When the process of forming your business entity is close to an end, remember to get your Employer Identification Number (EIN) that will allow you to perform standard financial operations in your company. You will need it for tax payment, creating a bank account, and hiring employees.
The authority assigning EINs to companies is the Internal Revenue Service (IRS), so you should contact them to get your number.
Make Annual Reports
To comply with the state norms properly, you should also report your business performance indicators every year.