A limited liability company , or “LLC” is a type of business structure known for protecting the assets of its owners known as members. It does this by ensuring that only the company can be sued without the members also being held liable for debts or losses. New Hampshire has very specific requirements regarding LLC formation, so be careful that you follow all the rules when you are trying to set up your business as an LLC.
- What are the Requirements to Form an LLC in New Hampshire?
- What Paperwork Do I Need to Form an LLC in New Hampshire?
- What Benefits Does New Hampshire Give to an LLC?
- What are the Disadvantages of Forming an LLC in New Hampshire?
- Where Can I Find the Right Business Lawyer to Help Me Form an LLC in New Hampshire?
There are several different kinds of LLCs, which include domestic, foreign, and professional LLCs. No matter what kind of LLC you want to form, there will be some basic requirements that all LLCs must meet.
For instance, one requirement that you must meet is that you need to have a registered agent, who is a human living in New Hampshire or a business based in New Hampshire, who can be served on your behalf. Additionally, you have to file the necessary paperwork. You must also to decide whether you want your company run by its own members or a manager.
There are different sets of requisite forms for domestic and foreign LLCs. With that said, both sets of forms may only be filed by mailing them into the New Hampshire Secretary of State. The two sets of forms have similar requirements, the name and purpose of the company, the name and address of the registered agent, and the name and address of the members or managers.
Foreign companies will also be required to state when and where they originally formed. If the company is a professional LLC, you will be required to state which kind of profession in which the LLC is engaged. The filing process may be somewhat complex and may also involve several different documents. Legal assistance or guidance may be needed to ensure that all items are complete and filed in a timely fashion.
Generally speaking, LLCs are associated with a number of benefits and advantages when compared with other corporate business structures. For instance, members cannot have their personal assets or finances taken if the company goes into debt.
Creditors can only access the business’ resources, not those of the individual LLC members. They are also shielded to some extent from liability connected with company violations. However, the members may still be liable for violations and debts that are the result of their own individual negligence or conduct.
Also, LLCs can often benefit from different tax treatments that apply to them. This can make it easier to manage the organization’s taxes and financial matters in the long run. For example, one of the major benefits of the LLC is that it uses “pass through” taxation.
This means that the LLC’s taxes can be paid through the owner’s individual tax return. This is different from corporations, which require that owners pay both corporate and personal income taxes on profits from the company. LLCs avoid this form of double taxation.
New Hampshire does require LLCs to file an annual report and pay an annual fee. If an LLC fails to file the report or pay the required taxes by April 1st, the LLC will be placed in a status of “Not In Good Standing.” A domestic LLC will be administratively dissolved if they do it two years in a row, whereas a foreign LLC will be labeled “Administratively Suspended.”
Lastly, LLC members may be limited with regards to the amount of control that they can exercise over the company’s decisions. This is different from other business forms like partnerships or sole proprietorships, where the members may have more decision-making capabilities. Also, LLC members may encounter restrictions that are specific to LLC structures.
For instance, they may be restricted in terms of the way that they can contribute financially to the company. This also means that their contributions may be processed differently compared to other business structure types. These types of legal issues may require the assistance of a legal professional in order to avoid violations and to ensure that the company is following proper procedures.
Forming an LLC is a complicated process involving many steps and requirements. Thus, it is highly important that you talk to a New Hampshire business lawyer when forming an LLC, so that you are not making any mistakes when creating your LLC. Your attorney can provide you with legal guidance during the filing process, and can represent you in court in the event that a legal dispute or lawsuit arises.