How to Qualify a Foreign LLC in New Hampshire

Explore our guide for essential insights on getting a foreign LLC qualification in New Hampshire, ensuring a smooth entry into the Granite State's dynamic market.

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Your business is growing, and you’re planning an expansion to other states. It’s a good problem to have!

But it’s not quite as simple as choosing another location. Because each state has different rules and requirements for business operations, you may need a “foreign qualification” in each state where you plan to do business.

It’s a common misconception that foreign qualification is only for businesses operating outside the U.S. But in this case, “foreign” refers to any business operating in a state that isn’t the state where the New Hampshire LLC was originally formed.

For example, if your LLC is registered in Vermont and you are looking to open a second location in New Hampshire, you may need to complete a foreign qualification in New Hampshire before you can expand there.

Important Note: If you’d like to save time and have the foreign qualification paperwork taken care of for you, many of the best LLC services can handle this task for you.

What happens if I fail to foreign qualify before doing business in New Hampshire?

Foreign qualifying is essentially asking permission to do business in the state of New Hampshire LLC. And the notion that “it’s easier to ask forgiveness than permission” doesn’t apply here. Failing to foreign qualify before starting a business in New Hampshire yields consequences that are far costlier than registering in the first place. If you fail to foreign qualify, your business:

  • Will no longer be able to commence or maintain lawsuits in New Hampshire courts
  • Will be required to pay all fees and LLC taxes it would have owed during its time in New Hampshire had it been properly registered
  • Will have the New Hampshire Secretary of State appointed as its registered agent

Those fees can add up quickly, especially when you take late fees into account. Although it’s not all bad news. If you transact business in New Hampshire without authorization, it won’t prevent you from defending a lawsuit in the state, nor will it invalidate your current contracts.

Want a little more reading material? Check out Section 304-C:180 of the LLC Act for more info.

What is considered “doing business” in New Hampshire?

We’ve established why you shouldn’t do business without a foreign qualification. But what exactly does it mean to “do business” in New Hampshire? Scan the state’s LLC Act, and you won’t find any specific examples. However, other state and tax laws tell us that you are considered to be “doing business” in most states and required to foreign qualify if:

  • Your LLC maintains stores, warehouses, offices, distribution centers, or other physical presences in the state.
  • There are salespeople, agents, or other representatives operating on your behalf in the state.

Depending on how your LLC is organized and how much profit you earn, you may be required to pay a Business Profits Tax or other business-related taxes in New Hampshire. But the state won’t know how to tax you unless you foreign qualify. Maybe you’re thinking it would save money to simply fly under the radar, but this could lead to some bigger fines in the future. It’s best to qualify as soon as you begin doing business. See the New Hampshire Department of Revenue website for more information on taxes. It’s important to always stay on top of your LLC’s taxation requirements to avoid any unwelcome surprises.

If you’re unsure whether or not you need to file for a foreign qualification in New Hampshire, we suggest seeking legal counsel.

Could I be exempt from foreign qualifying in New Hampshire?

The foreign qualification, however, isn’t a hard and fast rule for all LLCs performing any kind of action in New Hampshire. Certain actions do not qualify as “doing business” and therefore don’t require a foreign qualification. Some examples are:

  • Maintaining, defending, or settling any action or proceeding
  • Activities solely concerning internal affairs, like meetings of LLC members (see LLC members definition) and/or managers
  • Having accounts at in-state financial institutions
  • Holding offices for the exchange or transfer of the LLC’s own securities
  • Creating or acquiring indebtedness or securing debts
  • Owning, without more, real or personal property
  • One transaction, apart from other business activities and not part of a series, completed within 30 days
  • Transacting business in interstate commerce

Make a list of your business activities in New Hampshire, now cross-check that list with this one (or the more detailed one in the LLC Act Section 304-C:174). If you find your only business activities present here, you’re probably exempt from foreign qualifying. But again, if you have questions, it’s best to check with an attorney.

How to Foreign Qualify Your LLC in New Hampshire

Foreign qualification in New Hampshire is simple if you know where to find and send your forms. If you or your legal counsel has decided to foreign qualify your LLC in New Hampshire, head over to the Department of State’s LLC Forms page, click “Foreign Forms” on the menu bar, and scroll down to find Form FLLC-1: Application for Foreign LLC Registration. Or, go to the NH Quickstart page to file online.

Looking to foreign qualify as soon as possible? Take the online route. You’ll need to create an account to proceed. After you do, select “Create a Business Online” and follow the instructions to enter your information. There’s a $100 fee (plus a $2 electronic filing fee) that you can pay with a card at the end.

Or, there’s always trusty postal mail. Page one of the form linked above has step-by-step instructions for how to fill it out. But for quick reference, here’s the info you’ll need:

  • LLC name (both the original name and the one you’re registering in New Hampshire)
  • Principal office address
  • Business contact info (phone and email)
  • The LLC’s state and date of formation
  • Nature of the business you will be doing in New Hampshire
  • Your New Hampshire registered agent name and address

For either filing option, you’ll also need to include a Certificate of Good Standing from your home state, not dated more than 60 days prior to your filing.

When you’ve completed your paper form, you can mail it – with a $100 check made out to “State of New Hampshire” – to:

Corporation Division, NH Dept. of State

107 N Main St, Rm 204

Concord, New Hampshire 03301-4989

Or, if you live in the area, you can also drop your documents off at the State House Annex, 3rd Floor, Rm 317, 25 Capitol St, Concord, New Hampshire, 03301.

After your form is in and your fee is paid, sit back, take a deep breath, and pat yourself on the back. Your LLC is on its way to foreign qualification, and you’re embarking on another chapter in the life of your business.

New Hampshire Secretary of State Contact Information

Address:
107 North Main Street
Concord, NH 03301
Email:
corporate@sos.nh.gov
Telephone:
603-271-3246
Website:
https://www.sos.nh.gov/

Name Requirements to Remember

Don’t forget that each state has its own rules for business names, so before you submit your materials, double-check to make sure your name is compliant. Your LLC name must:

  • Use a term that identifies its business type, like “limited liability company,” “L.L.C.,” “LLC,” or a similar abbreviation.
  • Be available and distinguishable from every other business entity name registered or reserved with the Department of State. Perform a New Hampshire LLC name search to make sure the name you want is available.

For more details on naming and name distinguishability, see Section 304-C:32 of the New Hampshire LLC Act. You can also reserve your New Hampshire business name if you’re not quite ready to foreign qualify your LLC.

Frequently Asked Questions

  • We think you should foreign qualify your LLC before you begin conducting business in a new state. If you don’t, your business could be subject to a broad range of fines and penalties for operating an LLC in a jurisdiction where you don’t have permission to do so.

  • You’ll typically need to wait roughly 2-3 business days for the state to process your filing, according to the New Hampshire Department of State website.

  • Chances are, you’ll require at least one license or permit to operate your LLC in compliance with New Hampshire state law. For more information about business licenses and more in this state, check out the Licenses and Permits section on the state’s Business Information page.

  • Yes. Whether you operate a domestic or foreign LLC in this state, you are required to file a New Hampshire LLC Annual Report.

  • The overall costs of operating a New Hampshire LLC can vary considerably based on the specifics of your business. However, we created a helpful guide to help you identify and plan for every expense your LLC will face in this state.

  • The answer to this question lies in your personal preferences, but we can give some general pointers. An attorney will cost the most by a mile, but also provides expertise you won’t find with the other options. The DIY route is free of charge but can require quite a bit of legwork and provides no peace of mind that the process is being completed correctly.

    Using an LLC service means your business will be foreign qualified by professionals who know what they’re doing, while also costing significantly less than a lawyer. This “best of both worlds” attribute is what makes LLC services our preferred option.

  • Using an online LLC service removes much of the hassle from the foreign qualification process. With these services, all you need to do is provide them with the name, location, and industry your business operates in, along with some info about yourself and your New Hampshire registered agent.

    The service then files your Application for Foreign LLC Registration with the state to qualify your LLC to do business in New Hampshire.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. If you have specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by Team ZenBusiness

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