Registering a Business in NH
When registering a business in NH, there are a variety of business structures to choose from.3 min read
2. What is a General Partnership?
3. What is an LLC?
4. What is an EIN?
5. What Are the Section of a Business Plan?
6. How to File a DBA in NH for Sole Proprietorship or General Partnership
What is a Sole Proprietorship?
Single owners of a business based in New Hampshire can decide to get sole proprietorship, as it's the most simple form of organizing your business. This is an individual entrepreneur who makes the decision to start a business by themselves. This structure is also the cheapest and easiest business entity to form, as the owner is responsible for any actions and debts of the company. It is not necessary to register your sole proprietorship with the New Hampshire Secretary of State. However, a trade name should be registered and an EIN obtained if you plan on having employees in the future.
What is a General Partnership?
A general partnership is a business that has two or more people who run it together. Similar to a sole proprietorship, you do not need to register it with the New Hampshire Secretary of State. However, it doesn't protect owners from any liability the business encounters, so it's not often recommended.
What is an LLC?
The definition of a limited liability company is a business structure that lets owners restrict the business liability to the entity, which protects the personal assets of the owners. This is the kind of entity that is often recommended for smaller businesses. LLCs are automatically taxed as disregarded entities, which means you'll file the LLC tax return when you file your individual tax return. However, having an LLC means it's a flexible entity, so you have the choice to have it be taxed as a C corporation or an S corporation if you want.
What is an EIN?
An EIN, or Employer Identification Number, is a tax identification number that's nine digits long and is from the Internal Revenue Service. This identifies any company that operates in the United States, assists with opening a bank account, and keeps track of tax returns. Similar to how a person uses a social security number, an EIN is like this to a business.
Corporations, partnerships, and many sole proprietorships or LLCs that have employees need to file for an EIN. Single-member LLCs or sole proprietorships that do not have employees don't have a requirement to get an EIN. The social security number of the owner will be used instead.
What Are the Section of a Business Plan?
The first part of a business plan is having a general summary of the whole plan. This is called the executive summary section, and it's different because it shows the reader at the beginning what the end will look like. It's helpful to investors or lenders so they can quickly see what the overall business goals are.
The next section is the business overview part, which shows exactly what the company plans to sell and why this would be a great opportunity. All the relevant details should be included in this part so it ends up getting sent to the review committee. The management and employees part of the business plan discusses the staffing needs, daily operations, salaries, and more. Any experience the owner has will also be listed in this part.
In the marketing strategy part, it needs to be well-developed so there will be an adequate amount of customers who can support the company financially. You'll also need to list how you plan on advertising to them. This section isn't as crucial to the bank, but it may be the most essential one to the business owner. The financial projections part of the business plan is where the investor or lender will most closely analyze the plan. The business owner should also pay attention to this part to make sure their idea will make a profit.
Some elements to include in the financial projections include:
- Sale projections
- Break-even analysis
- Business start-up costs
- Financial statements (including profit and loss statements, cash flow projections, and balance sheets)
How to File a DBA in NH for Sole Proprietorship or General Partnership
When filing a general or sole proprietorship in New Hampshire and the company is under your first and last name, there isn't a filing that's required. However, if the company will run under a fictitious business name or trade name, you'll need to file a Registration of Trade Name. This is also known as Doing Business As or a DBA with the Secretary of State.
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