If you’ve always wanted to be your own boss, you aren’t alone. Surveys show that almost two-thirds of Americans dream of opening their own business. Starting a New Hampshire limited liability company (LLC) is a great way to achieve this goal.

New Hampshire offers some benefits for small business owners. For instance, there’s only a limited personal income tax in the state. To get these benefits, you need to create your LLC to meet local, state, and federal requirements.

Luckily, the process is straightforward. It’s all about breaking it down into digestible tasks and following a particular order. This guide gives you the tools you need to do just that. Follow the steps below to start your New Hampshire LLC.

Step 1: Name your New Hampshire LLC

Your business is like a baby — you want to give it the perfect name. Strive for something that isn’t too complex so that people can recall it easily. A great business name should also provide some idea of what products or services you offer. Finally, there are a few legal elements to consider when naming your LLC in New Hampshire.

According to state law, your LLC’s name must: 

• Include the words “limited liability company.” An abbreviation of “LLC” or “L.L.C.” is acceptable. 

• Steer clear of words, like “corporation.” They might cause confusion related to the type of business you own. You also can’t use restricted words, such as phrases associated with a government agency.  

• Be distinguishable. This means the name is one of a kind in the state so that it can be easily identified in records. To ensure no other business is already using your desired name, check the New Hampshire Department of State Quickstart’s database of business names. We show you how on our New Hampshire business name search page.

Find a Matching Domain Name

When selecting a name, also do your research regarding domain names. Your business website is a great marketing tool. Securing a domain that mirrors your business name makes it easy for customers to find you online. We have a tool to help you do a preliminary domain name search, and our domain name registration service can help you secure the online name that will best serve your company.

Reserve a Business Name for Free

Once you have the perfect name, you have the option to reserve it to make sure it doesn’t get taken by someone else. If you find a name you like but aren’t yet ready to file your Articles of Organization, New Hampshire allows you to reserve a business name for 120 days for a fee. If you’d rather not deal with this process yourself, we have a business name reservation service that can handle it for you. As part of the service, we also check to see if your desired name is available.

Get a DBA Name for Your NH LLC

If you think you want to operate under a name other than the LLC’s legal name, you can get a New Hampshire DBA or “Doing Business As” name. A DBA name can be used to launch future products and brands associated with your LLC under a different name and spares you the hassle of establishing a new company.

To make sure you’re entirely in the clear with your business name, visit the United States Patent and Trademark Office website to see whether your business name or logo is federally trademarked. Trademarks can also happen at the state level. To find out if your desired business name is already trademarked and/or apply for a trademark of your own, go to the New Hampshire Secretary of State website page for trademarks.

Step 2: Appoint a registered agent in New Hampshire

A New Hampshire registered agent accepts legal notices and correspondence from the Secretary of State on your LLC’s behalf. This must be a person or business with a physical address in the Granite State, not just a P.O. box. New Hampshire requires you to appoint a registered agent for your LLC.

Use a Registered Agent Service

While you are allowed to appoint yourself as the registered agent, this can present drawbacks. Using a registered agent service has its advantages. For one thing, you have the ability to move your office location without having to update your registered agent address with the state. For another thing, hiring a third-party agent gives you flexibility and freedom to leave the office, as the registered agent must be present at the office during all normal business hours.

Some additional benefits of using a registered agent service include:

• Discretion: If you provide your business address as your registered address, you risk being served with legal paperwork in front of customers or employees. Being served with a lawsuit so publicly could be embarrassing.

• Avoid the risk of noncompliance: With someone designated to receive all of your legal paperwork, you can rest easy knowing you’re in compliance with the registered agent requirements for the state.

New Hampshire does allow you to hire an external registered agent, provided they are a legal resident or business with an in-state address. We offer registered agent services in New Hampshire that help keep you covered and ensure no important paperwork slips through the cracks.

Step 3: File New Hampshire Certificate of Formation

With your LLC name and registered agent finalized, you can go ahead and file your New Hampshire Certificate of Formation. Commonly referred to as “Articles of Organization” in other states, this paperwork is submitted to the New Hampshire Department of State Corporation Division (also referred to as the Secretary of State office in other states). If approved, it formally establishes your LLC in New Hampshire as a legal business entity.

You can file the paperwork and pay the fee by mail, online, or in person. Filing by mail usually takes one to three weeks for everything to get processed. If you file online, processing usually takes three to seven business days. For a walk-in filing, your paperwork can be approved in just a couple of hours.

To complete the Certificate of Formation paperwork, you need to provide the following details:

• The LLC’s name
• The LLC’s physical business address and (if different) mailing address 
• The registered agent’s name and address
• A description of the nature of the business and/or the six-digit North American Industry Classification System (NAICS) code. You can look up the code applicable to your business by going to the NAICS website.
• The names of the LLC’s members (owners) and/or managers

You must also specify whether the management of the LLC is “vested in a manager(s).” This means choosing between a “member-managed” and “manager-managed” model of business. If you’re a smaller operation, and all members are involved in day-to-day business decisions, member-managed is suitable. Larger LLCs with multiple members may do better with a manager-managed structure, in which the members appoint or hire a manager to run the business.

That being said, filing official government documents like this can be intimidating and/or complicated for many people, which is why we’re here to help. With our business formation plans, our professionals handle the filing for you to make sure it’s done quickly and correctly the first time. 

Keep Your NH LLC’s Paperwork Digitally Organized

If you have us handle filing your Articles of Organization, once the state approves your LLC in New Hampshire, your paperwork will be available from your ZenBusiness dashboard, where you can keep it and other important paperwork digitally organized. 

Once you get your physical paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents, such as your operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

Step 4: Create an operating agreement

Creating a New Hampshire LLC operating agreement is a wise practice. This valuable document defines who owns your business and how it will be run. Points to cover include who owns the LLC, how much of the LLC they own, how profits are to be divided, and how important decisions — like a potential sale of the company — might be made.

New Hampshire doesn’t require an operating agreement with your Certificate of Formation, but you’ll likely want to create one, anyway. By providing clarity on business operations, this document prevents disputes between LLC members. It also makes your business more credible. For example, a reputable potential investor will likely ask to see an operating agreement to ensure your business is run well.

If you aren’t sure what points to include in your New Hampshire LLC operating agreement, we can help. Our customizable New Hampshire operating agreement template can be utilized for fast, easy creation of an LLC operating agreement that covers the essentials.

Step 5: Apply for an EIN

With the above steps complete, you can request an Employer Identification Number (EIN). This unique tax ID number is what you will need for your tax paperwork if you have more than one member or plan to have employees. An EIN can also be called a Federal Tax Identification Number. Even if you’re the only member (owner) of your business, it’s still a good idea to apply for an EIN, as you’ll need one to open a business bank account. 

You can get your New Hampshire LLC’s EIN through the IRS website, by mail, or by fax, but if you’re unfond of dealing with that particular government agency, we can get it for you. Our EIN service is quick and eliminates the hassle.

Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at tax time and helps you avoid commingling funds. Commingling funds can not only make your taxes more difficult, but it could also be used against you if someone takes you to court to challenge whether you and your LLC are truly separate entities.

We offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For further help managing your new business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.