Company Formation in Canada: Guide for US Entrepreneurs and Expats
Discover how U.S. entrepreneurs can navigate company formation in Canada, from costs and benefits to registration steps, tax rules, and compliance.
With over 142,000 small businesses making up more than 99% of all companies in the state1, New Hampshire is a thriving place for entrepreneurs. It's an especially attractive spot for forming a Limited Liability Company (LLC), thanks to the absence of both a state income tax and a general sales tax.
This guide will teach you how to form an LLC in New Hampshire, including the required steps, the costs, benefits, and important details you shouldn’t miss.
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Your LLC's name must be distinguishable from existing entities registered in New Hampshire and must include "Limited Liability Company" or abbreviations like "LLC" or "L.L.C."
To ensure your desired name is available, conduct a search using the New Hampshire Secretary of State's business name search tool2. If you wish to reserve the name before filing, you can do so for 120 days by submitting Form 1 with a $15 fee.
Note: If you want to operate your LLC under a different name than the one registered with the state, you must file a trade name registration (commonly called a DBA) with the New Hampshire Secretary of State and pay a $50 filing fee.
A registered agent acts as your LLC's official point of contact for legal documents and government correspondence. The agent must be a resident of New Hampshire or a business entity authorized to operate in the state, with a physical address (P.O. Boxes are not accepted).
While you can serve as your registered agent, many businesses opt for professional services to ensure compliance and privacy.
To legally establish your LLC, file the Certificate of Formation (Form LLC-13) with the New Hampshire Secretary of State. This can be done online or by mail. The filing fee is $100. The form requires details like your LLC's name, principal office address, registered agent information, and the nature of the business.
Although not legally required in New Hampshire, you should consider drafting an LLC operating agreement. This internal document outlines the ownership structure, member roles, voting rights, profit distribution, and procedures for adding or removing members.
An EIN, issued by the Internal Revenue Service (IRS), is necessary for tax purposes, opening a business bank account, and hiring employees. You can apply for an EIN online through the IRS website4 at no cost.
Depending on your business activities, you may need to register for specific state taxes, such as the Business Profits Tax or Business Enterprise Tax. Certain professions and industries require specific licenses or permits to operate legally in New Hampshire. Consult the New Hampshire Department of Revenue Administration5 and local authorities to determine your obligations.
All LLCs in New Hampshire must file an annual report with the Secretary of State by April 1 each year. The filing fee is $100. Failure to file the annual report can result in the administrative dissolution of your LLC.
Here’s everything you need to have to form an LLC in New Hampshire:
Thanks to the state's tax structure and ease of doing business, New Hampshire is particularly attractive for small and medium-sized business owners. Some of the direct benefits you’ll get if you choose New Hampshire for your LLC include:
The costs associated with forming an LLC in New Hampshire include:
Additional costs may include legal or consulting fees if you choose to seek professional assistance during the formation process.
Yes, you can open an LLC in New Hampshire even if you don't live in the state. You are **required to appoint a registered agent **with a physical address in New Hampshire to accept legal documents and official correspondence on behalf of your LLC.
Yes. Nonresidents, including individuals who are not U.S. citizens, can legally form an LLC in New Hampshire. The state does not impose residency or citizenship requirements for LLC ownership. Non-resident owners must appoint a registered agent with a physical address in New Hampshire to receive legal documents and official correspondence on behalf of the LLC.
It’s important to note that forming a foreign LLC in New Hampshire does not exempt nonresident owners from tax obligations in their home state or country. Income earned through the LLC may still be subject to taxation elsewhere, depending on the relevant tax laws. Nonresident entrepreneurs should consult with a tax professional to understand their tax responsibilities.
If you’re interested in knowing what New Hampshire has to offer to LLCs that other states don’t, the table below outlines it. It compares New Hampshire to three other popular choices for starting an LLC.
Feature | New Hampshire | Delaware | Wyoming | Nevada |
---|---|---|---|---|
Initial Filing Fee | $100 | $110 | $100 | $425 |
Annual/Biennial Fee | $100 | $300 | $60 minimum | $350 |
State Income Tax | None | 8.7% (corporate) | None | None |
Sales Tax | None | None | 4% | 6.85% |
Privacy Protections | Moderate | High | Very High | High |
Business Court System | No | Yes (Chancery) | No | No |
Ideal For | Local businesses | Startups raising capital | Asset protection | Businesses valuing privacy |
New Hampshire offers a straightforward and cost-effective environment for forming an LLC, with no state income or sales tax, making it ideal for local businesses.
Delaware is renowned for its business-friendly legal system and is preferred by startups planning to seek venture capital, despite its higher annual fees and corporate income tax.
Wyoming stands out for its strong privacy protections, lack of corporate and personal income taxes, and low annual fees, making it attractive for entrepreneurs prioritizing asset protection.
Nevada provides strong privacy protections and no state income tax, but comes with higher initial and annual fees, appealing to businesses that can absorb the additional costs for enhanced privacy.
Once you have established your business with an LLC, you’ll need a business account to manage your US finances. A Wise Business account is easy to open online and comes with no monthly fees. You can convert funds from your home currency to USD with low, transparent fees.
Wise is not a bank, but a Money Services Business (MSB) provider and a smart alternative to banks. The Wise Business account is designed with international business in mind, and makes it easy to send, hold, and manage business funds in currencies. You can get major currency account details for a one-off fee to receive overseas payments like a local. You can also send money to countries.
Some key features of Wise Business include: |
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Open a Wise Business account online
New Hampshire makes starting an LLC a smart move for business owners seeking a low tax burden, strong liability protection, and a straightforward setup process. With a clear understanding of the steps involved and ongoing obligations, you can establish and grow your business successfully in one of the most business-friendly states in the country.
New Hampshire offers moderate privacy protections. While business ownership information is filed with the state, hiring a registered agent service can help keep your personal address off public records.
Entrepreneurs choose New Hampshire for its absence of sales and personal income taxes, reasonable startup costs, and a strong local business environment focused on small business success.
While New Hampshire LLCs enjoy no state personal income or sales tax, they may still owe Business Enterprise Tax or Business Profits Tax depending on revenue thresholds.
New Hampshire does not offer the extreme privacy benefits that states like Wyoming or Delaware do, and certain larger businesses may face obligations under the Business Enterprise Tax.
Sources:
*Please see terms of use and product availability for your region or visit Wise fees and pricing for the most up to date pricing and fee information.
This publication is provided for general information purposes and does not constitute legal, tax or other professional advice from Wise Payments Limited or its subsidiaries and its affiliates, and it is not intended as a substitute for obtaining advice from a financial advisor or any other professional.
We make no representations, warranties or guarantees, whether expressed or implied, that the content in the publication is accurate, complete or up to date.
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