Form a General Partnership in New Hampshire

New Hampshire general partnerships comprise of two or more owners who co-own a business together. A partnership does not require you to create a formal entity with the state.

Let’s explore what a partnership is, how to form a general partnership in New Hampshire, and if it is the right type of entity for you.

Step 1: Determine if you should start a general partnership

Some business owners might find a New Hampshire general partnership the perfect vehicle, while others may want to consider other entities. Weighing the pros and cons of a New Hampshire general partnership can help you decide if it’s the right business structure for you.

Pros

Some of the benefits of a New Hampshire general partnership include:

• In most cases, creating a general partnership in New Hampshire is easy. All you need is an agreement between the partners.
• In New Hampshire, a general partnership is a low-maintenance option compared to LLCs and corporations.
• For tax purposes, the partnership’s income will be passed directly to you and your partners. This means that you do not have to pay a separate corporate income tax like you would with a corporation.

Cons

For some, a New Hampshire general partnership may not be a great option. Some of the disadvantages of a general partnership are:

• You share the debts and liabilities of the partnership, meaning that if your partner incurs a large debt in the partnership’s name, you may be personally liable for it too.
• You might also be held responsible for your partner’s negligent behavior or other wrongdoing.
• In partnerships, it is more difficult to transfer ownership and raise capital.

A general partnership in New Hampshire is a good option for short projects. It might not be the best option for longer projects or businesses with lots of risks.

Step 2: Choose a Business Name

A New Hampshire general partnership is not a formal entity, so the name of your partnership will generally be composed of the last names of the partners. But you may want to have a more descriptive name, which can be accomplished by using a separate assumed name, known as a DBA (“doing business as”) name. If you already have a name in mind, check to see if your business name is available.

Step 3: File a DBA Name (if needed)

To set up a DBA for your New Hampshire partnership, you will need to register the name with the New Hampshire Secretary of State. You need to make sure your business name is not already used by another business in New Hampshire. And make sure that it does not imply illegal activity. Fortunately, we can help you register your DBA.

Step 4: Draft and sign partnership agreement

A partnership agreement is very important when starting a general partnership in New Hampshire. This document establishes the rules and standards that the partners will follow. This can help to prevent any future disputes between the partners. If the partners do not have a partnership agreement, they will have to rely on the New Hampshire Uniform Partnership Act to handle any conflicts that may come up.

Step 5: Obtain licenses, permits, clearances

New Hampshire does not require a general business license. That said, New Hampshire requires licenses for certain occupations and businesses. Some of the business licenses in New Hampshire include:

• Sports agencies
• Charities
• Naturopathic doctors

You may need to check with your county and city to see if you need any licenses to run your business. You can find more about specific licenses on the New Hampshire state business website. We can also help save you time with our Business License Report.

Step 6: Get an Employer Identification Number (EIN)

An EIN is an identification number that the Federal government issues to businesses. This number is important if you want to open a bank account for your business, hire employees, or get financing for your partnership. Fortunately, we can help you obtain your EIN.

Step 7: Get New Hampshire State Tax Identification Numbers 

New Hampshire does not have a statewide sales and use tax. Still, you may need to file other types of taxes depending on the type of business activity you are engaged in. The New Hampshire Department of Revenue discusses these taxes in greater depth, so visit their website to learn more.

Forming a Business Partnership in New Hampshire: Next Steps

If you form a New Hampshire general partnership, there are some other things you might want to think about. If you have obtained an EIN, you may want to set up a bank account for your business. This will help you keep your business and personal finances separate. If your business involves things that could be risky or lead to legal trouble, you might want to consider getting insurance. Some businesses might need to get financing from outside sources for specific projects or goals. You will also want to keep up with your taxes.

How We Can Help

If you want to start a business, a general partnership is a good way to do it. But it might not be the best choice for everyone. Other types of businesses, such as LLCs and corporations, offer more protection from personal responsibility if your business gets into debt or has other problems. We can help you form either entity. We also offer a wide range of additional services to support your endeavor, so get in touch today to see how we can help.

If you want to have more liability protection for your business than what is given by a general partnership, we offer services to help you form a New Hampshire LLC or a New Hampshire corporation. And if you’re looking for more, check out how our full range of products and services can help you start and grow your business today.