How to Start an LLC in New Hampshire

If you're looking to open a new business in New Hampshire, a limited liability company (LLC) is a smart choice for your company's business structure. New Hampshire's flat individual tax rate and lack of sales tax makes it an attractive state in which to open a small business. LLCs can choose to file taxes as a corporation or as a sole proprietor/partnership, which gives them more tax options than a corporation despite having the same liability protection.

How to form a New Hampshire LLC in 6 steps

The first step to officially register your LLC in New Hampshire is to file a certificate of formation with the New Hampshire Secretary of State. However, there are a few steps you need to take before filing.

1. Choose your business name

You'll need to choose a name to include in your articles before you can register your LLC. New Hampshire has strict naming guidelines for registered businesses. These guidelines protect the public from misinterpreting the purpose of a business based on its name and help to avoid confusion between businesses with similar names.

There are a few key rules to follow when choosing a name for your business in New Hampshire.

• Names of limited liability companies must include the phrase “limited liability company” or an abbreviation of the term, such as L.L.C. or LLC.
• Business names must be distinguishable from any other existing business entity registered in the state. To check what counts as distinguishable, refer to this guide.
• Business names may not include vulgar or grossly offensive language.
• Business names may not include words that imply affiliation with a government agency or licensed profession without authorization from the appropriate agency.

New Hampshire Secretary of State (SOS) business entity search tool makes it easy to confirm whether or not a registered business in the state is already using your desired business name. LegalZoom also offers a business entity search service where we do the work for you.

If you aren't ready to register your LLC, but are concerned your name might be taken by someone else, you can reserve it for a $15 filing fee. In New Hampshire, names may be reserved for up to 120 days by paying the fee and submitting the proper form to the state authority.

You can file your name reservation by mail by sending in your completed form with a check made out to the State of New Hampshire to the following address:

Corporation Division
NH Dept. of State
107 N. Main St., Room 204
Concord, NH 03301-4989

Or, you can apply online for an additional $2 online filing fee.

2. Appoint a registered agent

A registered agent is the person or entity who’ll receive legal documents, government correspondence, tax forms, as well as notice of lawsuits on your LLC's behalf.

According to state law, a New Hampshire registered agent must meet the following criteria:

• A registered agent can be either a person or a business entity registered to do business in the state of New Hampshire.
• The person or entity must have a physical address in New Hampshire.

While you can appoint yourself, another member, manager, or an employee of the LLC as your registered agent, many businesses prefer to hire an outside entity to save themselves the time and legal responsibility. Registered agent service fees range anywhere from $100 to $500 per year. LegalZoom offers these services for $249 per year.

3. File your certificate of formation

Now that you have a name and registered agent, you're ready to officially file your certificate of formation (called “articles of organization” in other states) and officially register your new business. Whether your decide to file Form LLC-1 by mail or online, you'll need to provide the following information:

• Name, address, phone number, and email address of your LLC
• Nature and purpose of your business (for example, "software consulting and development")
• Name and address of your registered agent
• Whether or not members or managers will run your LLC
• Member’s/manager’s names, addresses, and titles

The filing fee for the certificate of formation is $100 by mail or $102 online. If you decide to file by mail, follow the same guidelines listed in Step 1. You'll receive a stamped copy within 30 days if the SOS accepts your registration.

If you're registering in a professional limited liability company, make sure to file Form PLLC-1 instead. The filing fee and required information are the same as a regular LLC.

4. Create an operating agreement

An operating agreement is a document that outlines the way your LLC will conduct business, including management structure, roles, and operational procedures. Because operating agreements govern the internal affairs of your business, NH doesn't require you to file one with the SOS.

That said, having a readily accessible, written operating agreement is helpful for a variety of reasons including settling disputes that may arise over financial agreements and other potential litigation. Without an agreement in place, courts typically make settlement decisions based on state law, which might not be in the best interest of your LLC and its members.

The cost of drafting an LLC operating agreement varies. You can write it yourself for free, but since courts use this document as a basis to make legal judgments, companies often choose to draft one with the help of a business attorney. LegalZoom’s operating agreement drafting service is $99.

5. Obtain an EIN and open a business bank account

The employer identification number (EIN) is a nine-digit number that the Internal Revenue Service (IRS) uses to identify your LLC for tax purposes. You can obtain an EIN by mail or online by applying through the IRS website. Having this unique identifier allows you to file and manage state and federal taxes, open a business bank account, and hire employees.

LegalZoom also offers an EIN application service for $79 that saves you time and effort by letting us guide you through the application and file with the IRS for you. We'll help ensure your application is filled out correctly and send you your EIN and official documentation once it’s approved.

As an LLC, having a business bank account is important to separate your business spending from your personal spending. This protects your limited liability status, providing personal liability protection, reducing the risk of audits, and simplifying bookkeeping.

6. Register for state taxes and business licenses

New Hampshire has a few unique tax laws that are important to know before opening a business in the state. First, New Hampshire law requires single-member LLCs to file a separate entity tax return with the state if gross receipts exceed $100,000 or they have certain types of income, even if they don't file a separate federal tax return.

Second, if you have a single-member LLC and you do not have a federal EIN then you need to register with the New Hampshire Department of Revenue Administration for a New Hampshire Department Identification Number (DIN). It's easy to apply online through the Granite Tax Connect.

The last thing you need to keep in mind as a New Hampshire business is the Business Enterprise Tax and Business Profits Tax. These are taxes that your business will need to file on its annual tax return if it reaches a certain income threshold, which varies every year.

Depending on the purpose of your LLC, you may also need to obtain specific local licenses and permits to legally conduct business in New Hampshire.

If you have (or plan to have) employees, there are a few extra considerations. For instance, businesses with employees need to file an annual Employer Status Report with New Hampshire Employment Security and submit a quarterly tax and wage report. Be sure to file your first Employer Status Report within 30 days of providing employment.

What to do after forming your New Hampshire LLC

We've covered the basic legal requirements to form your LLC in New Hampshire, but there are a few other considerations that will help ensure your business remains in good standing and thrives in the New Hampshire market—and beyond.

Register a domain name

Even if you don't think you'll need a webpage, you probably will. Before finalizing your LLC name, conduct a domain name search to check if the name is available as a URL. Having a domain that matches your business name will make it easier for prospective clients to find you online and helps to build credibility.

Maintain compliance

To keep business information current, NH law requires LLCs to file an annual report with the SOS. Even if nothing about your business has changed, you still need to file a new annual report every year by April 1, starting from the first April after registration. The filing fee for an annual report is $100. There's an additional $50 fee if you file late, so make sure to file on time! LegalZoom also offers an annual report service that can help you stay compliant and avoid late fees.

Obtain a certificate of good standing

Once you've officially registered your New Hampshire limited liability company, you may want to order a certificate of good standing. You're not required to have this document, but it proves to potential partners, investors, lenders, employers, and customers that your business legally exists and has authorization to operate in New Hampshire.

You can order this certificate from the SOS by mail, in person, or online. The processing fee is $5 for normal processing and $25 for expedited processing.

You can also use LegalZoom's certificate of good standing service. For $45, we'll file the paperwork for you and deliver the certificate once we've received it from the state.

Consider a foreign LLC

Registering a domestic LLC in NH only authorizes you to legally operate within the state. The term “foreign LLC” refers to an entity that registers in another jurisdiction to conduct business in a state other than the one where it was originally registered.

If you formed your LLC in another state, you can register as a foreign LLC in NH by submitting an application for registration as a foreign limited liability company foreign LLC in another jurisdiction. The cost of registering a foreign LLC will vary state to state, but may be worth the effort to widen your customer base.

To create a foreign LLC in NH, submit an application for registration as a foreign limited liability company (Form FLLC-1) online for $102 or by mail for $100.

The cost of forming an LLC in New Hampshire

There isn't a one-size-fits-all cost for forming an LLC in New Hampshire, as tax fees, licenses, and operating costs will all vary based on the industry and scope of your business.

There are some costs that every New Hampshire LLC will encounter, while others are optional or situation-dependent.

• Formation cost: Filing the certificate of formation costs $100 by mail or $102 online
• Name reservation: $15
• Annual report cost: $100, due by April 1 every year
• Certificate of good standing: $5
• Business enterprise tax: .55% for businesses with $281,000 or more of gross receipts
• Business profits tax: 7.5% for businesses with $103,000 or more of gross income
• Workers’ compensation insurance: About $179 to $1000 per year, depending on your industry (required for all businesses with employees)
• Registered agent service: $100 to $500 per year on average
• Operating agreement: $100 to $750 on average
• Website domain: $10 to $45 per year on average

(Keep in mind that all online filings incur an additional $2 online handling charge.)

If you calculate these fundamental start-up fees, the minimum cost of forming an LLC in New Hampshire is $229. If you include additional services to make your LLC formation easier, the cost could be a little closer to $517.

Special considerations for New Hampshire LLCs

Your business may be subject to industry-specific regulations or oversight from certain regulatory authorities. For instance, the New Hampshire Department of Environmental Services (NHDES) administers certifications, licenses, and specific permits for professionals who work in industries that impact public health and the environment. If your business involves hazardous waste, septic systems, groundwater, another industry that impacts the environment, you may need to apply for a special permit. To find out if you are subject to regulation, ask for guidance from relevant professional organizations, reach out to the NH Division of Economic Development, or let LegalZoom help you identify the licenses and permits you need.

Additionally, the New Hampshire Small Business Development Center (NH SBDC) is a great resource for entrepreneurs of any age who want professional business advice. They have a number of services, programs, and courses designed to help individuals looking to start their own business in the Granite State.

How to start your New Hampshire LLC with LegalZoom

There are a lot of online resources to support new business in New Hampshire, but there are also a lot of state-specific filing requirements and details that, if missed, can lead to delays or possible legal action. For this reason, LegalZoom has created streamlined LLC formation packages to further simplify the process while helping to ensure compliance with state laws.

The LegalZoom process takes only three steps.

1. You complete our LLC questionnaire

Take a few minutes to fill out a simple questionnaire. Tell us whether you want to form a new LLC or convert an existing partnership or sole proprietorship into an LLC, and which personal liability protection provisions you want to include.

2. We apply for your LLC

After you’ve given us all of the important information about your new business, we compile your documents and file them with the New Hampshire Secretary of State and Department of Revenue. Then, we’ll file the required licenses or permits and create an LLC operating agreement tailored to your specifications.

3. You receive confirmation and official documents

Once the SOS processes and confirms your documentation, we’ll send you your finished articles of organization, business registration certificate, other relevant documents, plus actionable advice on the next steps to ensure your LLC’s success.

FAQs

How long does it take to form an LLC?

It depends on where you register your business and how you file. New Hampshire's standard processing time is within ten business days for online filings and within 2-3 weeks by mail.

What are the benefits of filing an LLC in New Hampshire?

There are a lot of benefits of forming an LLC in New Hampshire. First of all, there is no general business license requirement, no sales tax, individual income tax is low, and smaller businesses don't have to file business enterprise tax or business profits tax.

What are the annual filing requirements for New Hampshire? 

New Hampshire has a number of annual filing requirements, including the following:

1. An annual report due to the Secretary of State
2. Income tax
3. Business enterprise tax
4. Business profits tax
5. Employer Status Report

How do I correct filing errors in NH?

LLCs can correct filing errors in New Hampshire by filing a certificate of amendment (Form LLC-3) with the NH SOS for a $35 filing fee. Either file online through the Quick Start portal or by mail to the NH Dept. of State Corporation Division.

How do I dissolve a New Hampshire LLC?

To dissolve your LLC in New Hampshire, file a certificate of cancellation (Form LLC-7) online or by mail for a $35 filing fee. LegalZoom also offers a business dissolution service that can help ensure that your articles are filed accurately. This process avoids future fees or taxes that could arise from mistakes made during the filing process. Once filed, we’ll send your certificate of dissolution in the mail.

Rudri Bhatt Patel contributed to this article.