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Embarking on the journey to establish your own Limited Liability Company (LLC) in New Hampshire unveils a landscape of costs that extend beyond the mere act of submitting initial paperwork.
While it might initially seem like a venture laden with expenses, there’s a silver lining: the realm of LLC formation doesn’t have to drain your financial resources as much as you might assume. In fact, equipped with the right insights and resources, you can navigate this process with prudence and efficiency.
In this article, we’ll delve into the various costs associated with forming an LLC in New Hampshire and reveal avenues through which astute financial choices can be made.
Furthermore, we’ll introduce you to invaluable LLC service providers like ZenBusiness that are poised to not only streamline the process but also pave the way for judicious cost savings.
What Is the Cost of Forming an LLC in New Hampshire?
The primary cost to form an LLC in New Hampshire is the $100 fee required for submitting your LLC’s Certificate of Formation through the online portal of the New Hampshire Department of State.
Here’s the LLC Cost Guide for all US States:
New Hampshire Foreign LLC Formation Costs
In case your existing LLC is already registered in a different state and you intend to extend your business operations to New Hampshire, the process involves registering your LLC as a foreign entity in the state. This procedure incurs a fee of $100 for the registration of a foreign LLC in New Hampshire. To achieve this, you must submit an Application for Foreign Limited Liability Company Registration (Form FLLC-1).
Annual Cost for LLCs in New Hampshire
When establishing an LLC in New Hampshire, it’s crucial to factor in the continuous expenses tied to maintaining the LLC. The key ongoing fees for a New Hampshire LLC comprise the annual report filing fee of $100, the potential Business Profits Tax and Business Enterprise Tax, which vary based on income and state activities, and the registered agent fee.
The latter is mandated by New Hampshire law and involves either acting as your own agent at no cost or enlisting a service for around $100–$300 annually. Recognizing these ongoing financial obligations is essential for effective budgeting and safeguarding the financial well-being of your LLC in New Hampshire.
How Much Does It Cost to Start an LLC in New Hampshire With the Best LLC Service?
ZenBusiness LLC Formation Cost
The initial expense for filing an LLC in New Hampshire starts at $100 and can vary depending on additional services. The standard processing period typically spans 2 to 3 weeks; however, there are options for expediting the process to 7 to 9 days at an added cost of $50 or further accelerating it to 4 to 5 days for a fee of $100.
ZenBusiness provides a range of three pricing options for their business formation services, namely Starter, Pro, and Premium plans.
- Starter plan: This is designed to cater to fundamental business formation requirements and is priced at $0, in addition to state fees.
- Pro plan: This encompasses supplementary features such as expedited filing and registered agent services, available at a cost of $199, alongside state fees.
- Premium plan: This stands as the most extensive package, encompassing all elements of the Pro plan and further incorporating unlimited Worry-Free Compliance. This facet aids businesses in maintaining adherence to both state and federal regulations. The Premium plan carries a price tag of $349, in addition to state fees.
ZenBusiness also extends the offer of a complimentary year of Worry-Free Compliance with the acquisition of any of the aforementioned plans.
Additional Costs When Starting an LLC in New Hampshire
New Hampshire LLC Name Costs
Choosing a name for your Limited Liability Company comes at no financial expense. Once the state approves your filing for the Certificate of Formation, your chosen name for the New Hampshire LLC is also sanctioned without any additional charges.
You might have come across information online suggesting the necessity of reserving LLC names. Nonetheless, this is largely inaccurate for the majority of states. In most cases, forming an LLC doesn’t mandate a Name Reservation.
If you wish to secure your chosen name for a period of up to 120 days before officially forming the LLC, you can accomplish this by submitting an LLC Name Reservation application (Form 1) and completing the associated $15 filing fee.
New Hampshire Registered Agent Costs
The New Hampshire registered agent Fee can either amount to $0 if you fulfill the role yourself or $125 per year. It’s a legal requirement in New Hampshire that your LLC designates a registered agent during its formation.
The registered agent in New Hampshire is an individual or a company responsible for receiving official documents and state notifications on behalf of your LLC. This agent must possess a physical address within the state and should generally be accessible during regular business hours.
If you choose to act as your own registered agent or have someone you’re familiar with take on the role, there are no extra charges involved.
Nonetheless, you do have the alternative of employing the services of a registered agent. This typically comes at a cost ranging from $100 to $300 annually. Apart from the registered agent duties, these service providers often offer other advantageous business services and can help safeguard your privacy.
Opting for a registered agent service is advisable in scenarios such as:
- If you lack an address within the state (New Hampshire law dictates that registered agents must have a physical address in the state)
- If you wish to prevent your address from becoming a public record (certain companies might allow you to utilize their address for privacy purposes)
New Hampshire Operating Agreement Costs
There’s no charge for the LLC Operating Agreement ($0).
In New Hampshire, an LLC Operating Agreement is a documented agreement among the members of the LLC. This agreement contains comprehensive particulars regarding ownership of the LLC, the methodology of its administration, and the protocol for distributing profits. Both Single-Member and Multi-Member LLCs are advised to create an Operating Agreement, retain it within their business documentation, and provide each member with a copy.
Numerous online platforms generally demand a fee ranging from $50 to $200 for the preparation of LLC Operating Agreements.
New Hampshire EIN Cost
There’s no cost associated with obtaining an LLC EIN Number ($0).
The EIN, also referred to as an Employer Identification Number (EIN) or Federal Employer Identification Number (FEIN), serves various purposes, such as income tax filing, establishing an LLC bank account, and facilitating employee recruitment if relevant.
While several online platforms impose service charges for acquiring an EIN for your LLC, it’s important to note that obtaining an EIN can be accomplished without any expense. You can acquire an EIN for your LLC from the Internal Revenue Service (IRS) free of charge. The online application process can be completed within a matter of minutes.
New Hampshire LLC Taxes
The range of annual expenses for New Hampshire LLC owners varies due to the assortment of LLC taxes they must cover.
A selection of the taxes paid by LLC owners encompasses:
Federal Income Taxes for LLCs
The IRS provides different tax treatment options for LLCs. Single-member LLCs are considered Disregarded Entities, where the owner handles federal income tax filing. The taxation method depends on the owner. an individual owner is taxed as a Sole Proprietorship, while ownership by a company results in branch/division taxation.
Multi-Member LLC Taxes
For LLCs with multiple owners, the IRS treats them as Partnerships. The LLC files a 1065 Partnership Return and issues Schedule K-1 to owners, detailing their share of profits. Owners then report this income on their personal tax return (Form 1040).
Husband and Wife LLC Taxes
In states like Texas, a husband and wife LLC can opt for Single-Member LLC taxation (Qualified Joint Venture) instead of Multi-Member status. However, this option isn’t available in New Hampshire, a non-community property state.
Electing Corporate Taxation for LLCs
LLCs can choose to be taxed as Corporations rather than default options. Corporate election types include S-Corporation and C-Corporation.
Filing Form 2553 makes an LLC an S-Corp, which can benefit established businesses with reduced self-employment taxes. Form 8832 filing turns an LLC into a C-Corp, often less common due to its specific advantages.
New Hampshire State Income Tax for LLCs
For Single-Member LLCs, the owner reports the LLC’s profits or losses on their personal state return. Multi-member LLCs may need to file a state-level Partnership return, with owners also reporting profits/losses on their personal state return.
Business Enterprise Tax and Business Profits Tax
New Hampshire levies taxes on businesses at the entity level: Business Enterprise Tax (BET) and Business Profits Tax (BPT), also known as a Gross Receipts Tax. The BET threshold applies to any earnings, not just within the state. BPT is paid by all New Hampshire businesses for operating within the state.
Local Income Tax for New Hampshire LLCs
LLCs and individuals might need to file local income taxes based on their municipality. Seeking an accountant’s help is recommended.
New Hampshire Sales Tax
Unlike most states, New Hampshire lacks a state sales tax. LLCs selling in-state are exempt, but out-of-state sales might require collecting sales tax where customers reside.
New Hampshire LLC Payroll Taxes
LLCs with employees must manage various payroll taxes, including federal and state income tax, Social Security, Medicare, and unemployment taxes. The intricate calculations often lead to hiring payroll services or accountants to ensure accuracy and avoid penalties.
New Hampshire LLC Cost FAQs
How Much Does It Cost to Open an LLC in New Hampshire?
Initiating a New Hampshire LLC necessitates a $100 fee for the online submission of the LLC Certificate of Formation, while filing through mail incurs a $100 charge. Additional business licenses might be obligatory based on the LLC’s industry and location, with varying costs for local business permits.
How Much Does an LLC in New Hampshire Cost Per Year?
To maintain an active status, every New Hampshire LLC must annually remit a $100 fee for Annual Reports to the Secretary of State, representing the sole obligatory state-based annual payment. Additionally, if you’ve enlisted a registered agent service, an approximate yearly subscription fee of $125 applies.
In specific cases, the requirement for a New Hampshire LLC to obtain a business license hinges on its industry and location to ascertain whether annual renewal fees pertain to the business permit, consultation with the respective municipality is advised.
Should I Hire an LLC Formation Service?
Although it’s not a requirement, you can choose to personally handle the creation of your New Hampshire LLC without professional assistance. For those aiming for a streamlined and accurate filing process, considering the utilization of a service like ZenBusiness is recommended.
Renowned for their excellent customer assistance, they also offer a free initial year of registered agent services, along with extras such as crafting an Operating Agreement and managing the submission of Annual Reports.
To conclude, the process of establishing an LLC in New Hampshire involves more than just the upfront filing fee. Beyond this initial cost, navigating the journey requires careful consideration of various financial aspects, including obtaining necessary documentation, engaging registered agents, and addressing key factors such as operating agreements and obtaining an EIN.
Armed with insights into these diverse financial commitments and empowered by the support of ZenBusiness, prospective business proprietors can confidently embark on their New Hampshire LLC endeavor.
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About the author
Dr. Alexander Sterling, Esq, a distinguished legal scholar with a business law degree and a Doctor of Juridical Science, is a leading expert in business registration and diverse business departments. Renowned for his academic excellence and practical insights, Dr. Sterling guides businesses through legal complexities, offering invaluable expertise in compliance, corporate governance, and registration processes.
As an accomplished author, his forthcoming book is anticipated to be a comprehensive guide for navigating the dynamic intersection of law and business, providing clarity and practical wisdom for entrepreneurs and legal professionals alike. With a commitment to legal excellence, Dr. Alexander Sterling, Esq, is a trusted authority dedicated to empowering businesses within the ever-evolving legal landscape.