How to Start a Business and Form Your LLC in New Hampshire

New Hampshire Business Facts and Environment

NH Business Facts

New Hampshire is a state with a small market and slow economic development. Nevertheless, The Granite State remains attractive to various businesses because it has no sales or personal income taxes. Moreover, the location of New Hampshire, which is close to greater New England, gives solid opportunities to budding entrepreneurs. in 2018, the SBA reported that 99% of all businesses in New Hampshire were small businesses.

Major Companies Headquartered in New Hampshire

C&S Wholesale Grocers, Keene State College, Timberland, Standex International, Mt, Albany International and C&S Careers are just some of the top businesses headquartered in New Hampshire.

Startup Environment

New Hampshire is a business-friendly location to many startups because of factors such as low tax burden, per capita personal income that is above average, and the state’s close proximity to big markets.

Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation or an LLC. Click here to learn more about business entities.

• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

Step 2: Pick a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in New Hampshire, but we highly recommend you do the following before searching New Hampshire state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
• Do a trademark search with the US Patent and Trademark Office (USPTO). This will be a very good indicator if your name will have any conflicts. There’s an art to trademark searches (trademark specialists will charge you handsomely to do a thorough search) but in our experience if you can use Google at a fairly advanced level you can reasonably clear a name yourself.
  
  TIP: search misspellings, plurals, variations of spelling, sound-alikes and other versions of your chosen name to be sure it’s not already registered.
  
• Make sure your company name choice is available by searching the New Hampshire Business Entity Database and doing a name search on the State of New Hampshire website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

NOTE: Familiarize yourself with the New Hampshire naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on New Hampshire Business Name & Business Purpose

• Business names should be unique.
• New Hampshire corporate names may have the following approved designations:
  • Corp.
  • Corporation
  • Inc.
  • Incorporated
  • Limited
  • Ltd.
• The use of the following words and phrases in corporate names is considered “restricted” in New Hampshire:
  • Bank
  • Banker
  • Bankers
  • Banking
  • Banks
  • Engineer
  • Engineered
  • Engineering
  • Engineers
  • Land Surveyor

Step 3: Register the Business

Each state has its own requirements for registering a business. Now that you’ve chosen a business structure and selected your business name, here are the requirements to register your business in New Hampshire.

How to form an LLC in New Hampshire

• File the “Articles of Organization” with the New Hampshire Secretary of State LLC Division.
• Once the articles are filed and approved you will then need to properly organize the LLC (this also applies to “1-person LLC’s”) by holding an “Organizational Meeting” which takes contributions from the members, issues Member Certificates, adopts the company Operating Agreement and more.

How to Incorporate in New Hampshire

• File the “Articles of Incorporation” with the New Hampshire Secretary of State Corporate Division.
• Hold an “Organizational Meeting” to determine the percentage of ownership for each shareholder as well as resolve to do tasks like open a company bank account, pay back pre-incorporation expenses, elect S-Corporation status and more.
• Corporations can elect S-Corporation status with the IRS by filing IRS Form 2553. Click here to learn more about S-Corporations.

NOTE: When registering a new company the Secretary of State can take several weeks to file the paperwork. You can expedite the process by hand delivering the documents directly to them or one of their field offices and paying an additional fee.

TIP: Check our order form to see how long New Hampshire is currently taking to process regular and expedited orders.

How to File a DBA (Trade Name Registration) in New Hampshire

• Check the state database of business names.
• Complete the Trade Name registration form.
• Pay $50 for the filing fee.

Optional Considerations when registering a New Hampshire business

• Hire a professional Registered Agent. Many people list their home or business address on the Articles of Organization or Incorporation. This can cause issues because it becomes public record (you’ll get lots of junk mail). A professional Registered Agent will provide their address and forward any important documents to you, this is also convenient if you have to move (you don’t have to file forms or pay fees, just update your address with your agent).

Ready to register a business in New Hampshire?

• We specialize in registering businesses in New Hampshire.

Ready to Start Now? Let Us Do The Work

Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.

• Learn more about our business formation service
• Read our verified reviews and 100% Satisfaction Guarantee
• Contact our friendly support team if you have any questions

Step 4: Obtain Your Federal Employer Identification Number

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLC’s and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.

To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.

TIP: We will obtain your EIN for you if you we form your company.

Step 5: Open Company Bank and Credit Accounts

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank and inquire on the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in New Hampshire

• Citizens Bank
• TD Bank
• People’s United Bank
• Bank of New Hampshire
• Bank of America

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Set-up An Accounting System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including: a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Step 7: Obtain Licenses and Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.

Step 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection. Click here to view our preferred provider of business insurance online.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. This means have a method to process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set-up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Your Trade Name registration should be valid for 5 years (unless you change company name or other information listed on the FBN) at which point you’ll need to renew it with the county.

LLC: New Hampshire corporations are required to file a Periodic Report with the New Hampshire Secretary of State on or before April 1 of each year, in addition to general taxation. Information on your business’s taxes can be found here.

Corporation: Business in New Hampshire should file a report annually, due on or before April 1, with the Secretary of State of New Hampshire. LLCs and Corporations will pay a filing cost of $102.

Important New Hampshire Contacts

New Hampshire Secretary of State

Corporation Division (for Corporation and LLC filings)
107 North Main Street
Concord, NH 03301-4989
Metro Area Phone: 603-271-3246

New Hampshire Taxation Departments

• New Hampshire Department of Revenue Administration

New Hampshire Labor and Employment Departments

• Department of Labor

New Hampshire Startup Resources

1. Small Business Administration (SBA) New Hampshire District Offices

• New Hampshire District Office

2. SCORE New Hampshire

• On November 1, 1967, the Merrimack Valley Chapter of SCORE received its official charter, being among the first chapters in the then three-year-old Service Corps of Retired Executives, as the organization was then known. Today, SCORE boasts more than 370 chapters nationwide and over 13,000 volunteer mentors.
• Seacoast SCORE offers FREE business mentoring, low-cost or no-cost business training, and numerous templates and tools to help you start or grow a business.

3. New Hampshire Legal Statutes

• New Hampshire Business Corporation Act – this defines a Corporation or Domestic Corporation as a corporation incorporated for profit under the rules of the state of New Hampshire.
• New Hampshire Limited Liability Companies – the specific act that applies to New Hampshire LLC’s.

4. New Hampshire Chambers of Commerce

• Henniker Chamber of Commerce, NH
• Greater Manchester Chamber of Commerce
• New Hampshire Chamber of Commerce
• Central NH Chamber of Commerce
• Greater Concord Chamber of Commerce

5. New Hampshire Business One Stop

• The Business One Stop now makes it even easier for businesses to navigate New Hampshire state government.

6. Angel.co New Hampshire Startups

• A list of all 370+ New Hampshire Startups and 4,800+ New Hampshire angel investors registered with Angel.co. Good research resource.

7. New Hampshire Business News

• New Hampshire Business Review
• Business NH Magazine

8. NHEconomy.com

• The New Hampshire Division of Economic Development is part of the New Hampshire Department of Business and Economic Affairs, along with the Division of Travel and Tourism Development.  

9. New Hampshire Small Business Development Center

• NH SBDC has offered confidential business management advising and educational programs to more than 94,000 New Hampshire entrepreneurs, helping them to start over 2,000 businesses and create more than 7,000 jobs since 1984.

10. NHDES

• The mission of the New Hampshire Department of Environmental Services is to help sustain a high quality of life for all citizens by protecting and restoring the environment and public health in New Hampshire.