What You Should Know About New Hampshire LLC Taxes
Looking to form an LLC in New Hampshire? When an LLC is formed, it is its own separate entity, apart from the individual and the business that it is protecting. It not only protects the company, but the personal assets of the owner, and this is why limited liability companies have become so popular today. There is often a question regarding the payment of taxes. For example, since the LLC is a separate entity, is it something that must be accounted for when it comes to tax time. Let’s go over why LLCs are not actually required to pay for taxes, and why this falls upon the members of the LLC instead.
New Hampshire LLCs And Taxes
In the state of New Hampshire, LLCs are not liable for federal taxes. However, based on the profits and losses of the business itself, these must be paid for by the owner. If products and services are being offered in New Hampshire, state business taxes must also be paid. It is actually very unusual for any type of tax to directly fall upon an LLC. For example, business tax profits may refer to gross business income for the business that is covered by the LLC. There may also be business enterprise tax, but this only applies to LLCs if the gross total of those receipts is more than $200,000. If taxes are necessary, which your accountant will be able to tell you, these are going to be paid to the Department of Revenue Administration in New Hampshire. When it comes to tax time, tax returns must include the BET form and the NH-1065 form which will be connected to your own personal taxes.
How To Form LLCs
If forming an LLC is of interest to you, you can do this in New Hampshire by following a certain protocol. It is recommended that you first look for the name of the business you would like for your LLC to see if it has been registered by someone else. If you can reserve one, you will use that when you are filling out your paperwork for the limited liability company. Finding a registered agent is also something that you must-do if you want to have an LLC fully functional in the up-and-coming weeks.
There are two documents that can be filled out, one of which is mandatory, and there are businesses that can help you do this if you would prefer not to. The one that is not mandatory is the Operating Agreement. The mandatory one, which is the form that you sent directly to the New Hampshire Secretary of State, is going to be your Certificate of Formation.
What Goes On The Certificate Of Formation?
On this document, as stated before, your LLC name is going to be listed. However, you also need to have a business phone, a physical office address, and an email. You also need to present what your business is about. Therefore, the nature of your business, in a short sentence, is all that is required. The registered agent must be listed along with their address and their name. If you have managers and members that are working with you, they must also be listed and sign the document. This will then be submitted along with a $100 filing fee so that the Secretary of State’s office can improve it.
Other Things To Consider When Forming An LLC
If you other things that you need to think about before filing your LLC is when you are doing it. For example, if you have not already created your sole proprietorship or partnership that you want to protect, you should do this first. You should also look into all of the licenses and permits that will be necessary to conduct your business legally in the state of New Hampshire. Also, abide by any rules and regulations that may pertain to your particular city or county. By gathering this information and understanding what needs to be done, you can be fully compliant before you ever launch your LLC. It’s a good thing to know how to operate your business before you take advantage of the protection offered by limited liability companies.
Completing paperwork for an LLC, and submitting it, might be something that you don’t have time for. There are many people that pay businesses to do this for them. A quick assessment of the different companies that offer this type of service can be helpful in determining which business will be best suited to assist you in getting this done. It’s a small price to pay for peace of mind knowing that your LLC will soon be approved courtesy of the services that these businesses offer. Now that you know more about LLC taxes in New Hampshire, and how to set up a limited liability company, you may want to pursue this at your earliest convenience.