For many New Hampshire residents, a newly created limited liability company can provide peace of mind when it comes to protecting assets. Some individuals form an LLC to hold title to a rental property in an effort to shield personal assets from the possibility of a lawsuit brought by a tenant. Other individuals form an LLC when creating a new business or when their existing business grows to the extent that liability protection becomes a real concern. Regardless of the reason, the process can be easy and efficient when overseen by a knowledgeable New Hampshire LLC attorney.
What is the process for creating an LLC in New Hampshire?
To form a limited liability company, your first step should be to contact an experienced attorney. Next, your lawyer will assist with the following parts of the process:
- Draft a Certificate of Formation for the new LLC. This requires making certain decisions including a name for the new company, choosing a principal address, and deciding whether you want to be a member-managed or a manager-managed LLC.
- File the Certificate of Formation with the New Hampshire Secretary of State’s Office. There are several means for filing; however, the quickest is typically to create an account and file online. After carefully reviewing your draft Certificate of Formation, the final version is submitted for approval.
- Obtain the approved Certificate of Formation. If you filed electronically, you will receive notice that the filing was accepted via email. The Certificate of Formation should be kept with the records of the company.
- Obtain a tax ID number. The employer identification number can be obtained online and typically takes just a few minutes. It is important to discuss the application with your attorney or accountant before attempting this yourself, as mistakes can be cumbersome to correct.
- Open a bank account for the LLC. This step is critical because co-mingling personal and LLC funds can create an opening for creditors to attack the liability protection of the LLC.
- Draft an Operating Agreement. Unfortunately, many people who file their LLC without the assistance of an attorney neglect this step. The operating agreement is important for many reasons, including the ability to dictate what should happen with the LLC if you become incapacitated or pass away.
While there is no requirement to use an attorney when filing an LLC, there are many benefits to obtaining the assistance of a knowledgeable lawyer as you move forward with the process. We are here to help.
Contact us today for a consultation by calling (603) 434-1770.