How to Create a General Partnership in New Hampshire: A Beginner’s Guide


Steve Goldstein
Steve Goldstein
Business Formation Expert
Steve Goldstein runs LLCBuddy, helping entrepreneurs set up their LLCs easily. He offers clear guides, articles, and FAQs to simplify the process. His team keeps everything accurate and current, focusing on state rules, registered agents, and compliance. Steve’s passion for helping businesses grow makes LLCBuddy a go-to resource for starting and managing an LLC.

All Posts by Steve Goldstein →
Business Formation Expert  |   Fact Checked by Editorial Staff
Last updated: 
LLCBuddy™ offers informative content for educational purposes only, not as a substitute for professional legal or tax advice. We may earn commissions if you use the services we recommend on this site.
At LLCBuddy, we don't just offer information; we provide a curated experience backed by extensive research and expertise. Led by Steve Goldstein, a seasoned expert in the LLC formation sector, our platform is built on years of hands-on experience and a deep understanding of the nuances involved in establishing and running an LLC. We've navigated the intricacies of the industry, sifted through the complexities, and packaged our knowledge into a comprehensive, user-friendly guide. Our commitment is to empower you with reliable, up-to-date, and actionable insights, ensuring you make informed decisions. With LLCBuddy, you're not just getting a tutorial; you're gaining a trustworthy partner for your entrepreneurial journey.
Create a General Partnership in New Hampshire

Forming a general partnership in New Hampshire can be a great way to combine your skills, resources, and ideas to create a thriving business. In New Hampshire, also known as The Granite State, general partnerships are relatively easy to establish, making them an attractive option for entrepreneurs who want to keep things simple and cost-effective.

This article will guide you through the essential steps to start a general partnership in New Hampshire. From understanding the legal requirements and drafting a partnership agreement to registering your partnership and obtaining necessary permits, we’ll provide you with the necessary tools and insights to help you launch your business venture. Whether you’re opening a boutique retail store or a cutting-edge tech startup, this comprehensive guide will help you navigate the process of starting a general partnership in New Hampshire.

What is General Partnership In New Hampshire

It is a business structure where two or more people come together to form a jointly owned business. In the general partnership business, the partners agree upon sharing assets, responsibilities, profits, and liabilities (legal & financial). In a general partnership, Partners consent to carry potentially unlimited liability personally. Liabilities are not restricted as they would be, for example, in a limited liability partnership (LLP) or a limited liability company (LLC) structure. Unlike the LLCs, a partner, in this case, can be legally sued for any business debts, and a possibility of seizure of personal assets can occur.

Before you start setting up your general partnership, it is advised that you consult a legal person. They will know what is best for you and your business. You can always form an LLC instead of a general partnership to protect your personal assets from business debts.

LLCBuddy Editorial Team

How to Create a General Partnership in New Hampshire

To create a general partnership in New Hampshire, you must follow the guidelines below: forming a business name, making a partnership agreement, requesting an EIN, getting a license and permit, getting a state-based tax ID, and opening a bank account.

Step 1: Choose a Business Name in New Hampshire

Naming your business is one of the most crucial activities during the startup phase. Your general partnership name is the foundation for your brand in New Hampshire and is what clients use to connect you to the products or services you offer. Legal procedures should be taken into account when choosing your partnership name. Choose a business name that will enable you to develop a strong brand identity without being hampered by irrelevant factors.

If you want to set up an LLC, there is a complete guide on New Hampshire LLC name guidelines for a proper business name. Here are some guidelines you must follow while naming your general partnership-

  • Name availability: The name should be available, and no other entity should have the same name in New Hampshire.
  • Trademarks
  • Limit of restricted words that need a license in New Hampshire

In New Hampshire, if you register your general partnership business with the New Hampshire Secretary of State, then the name you choose will be the company’s official name. On the contrary, unregistered general partnership businesses use the last name of all of their partners by default. For instance, if Selena Gomez and Hailey Beiber enter business together, the partnership name is “Gomez & Bieber” by default if unregistered. However, if you would like to form a business name under something more appropriate, such as “EJI Design and Build,” then you’ll need to file a “Doing Business As (DBA)” name with New Hampshire SOS.

In New Hampshire, if you do not wish to file your general partnership business right away but want to hold the name that you have decided on, then you can reserve your business name for 120 days. You must file a name reservation application with the SOS to keep the name.

Step 2: Make a Partnership Agreement

After you have chosen a business name for your general partnership, the next step would be making a partnership agreement in New Hampshire. A partnership agreement is a legal contract that specifies how a for-profit company would operate when run by two or more people.

The partnership agreement specifies each partner’s roles within the company, their ownership stakes, and their share of profits and losses. Additionally, it discusses business management guidelines and potential contingencies that may arise, such as a partner’s passing or a partner’s decision to leave the partnership. A partnership agreement should include the following:

  • Name of Partners
  • The principal address of the partnership
  • Purpose of the partnership
  • Terms of the partnership
  • Partnership start date and end date (if not for infinite time)
  • Partnership dissolution terms (for finite partnership)
  • Capital contribution of partners
  • Share of Interest of Partners
  • Profit distribution of partners (equal distribution by default, if not specifies any special condition)
  • Salary distribution (if applicable)
  • Partnership Management Terms
  • Terms of Partnership Sale

These key factors must be considered when forming or creating a partnership agreement in New Hampshire. In this way, all business partners will understand what this is about and how to proceed if the mentioned scenarios happen in New Hampshire.

Without a Partnership Agreement, your company will often be subject to the general partnership default laws of New Hampshire. The default laws in New Hampshire might not be appropriate for your requirements. Hence, it is important to have a transparent agreement while forming a partnership.

Step 3: Request an EIN in New Hampshire

After documenting the partnership agreement, you should get or request an Employer Identification Number (EIN). An EIN will serve as the tax ID for your general partnership. EIN can be obtained from the Internal Revenue Service (IRS). It is a 9-digit number similar to Social Security Number. EIN, however, is distinct from SSN. It is only used for business-related activities, particularly for submitting general taxes. The form must be completed and uploaded to the IRS website. Getting EIN is necessary whether you are opening an LLC in New Hampshire, or a general partnership, or something else.

The application of an EIN in New Hampshire can be through the following:

  • Apply Online- You can apply for EIN online, which is the most desirable and fastest method for users.
  • Apply by Fax- Another method of obtaining EIN is to fax Form SS-4 (PDF) after entering all the correct information to (855) 641-6935.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is 4 weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

After you have your EIN number, you can benefit in several ways. It will provide your general partnership with the final advantage necessary to operate fully without encountering legal or judicial issues. For more details about EIN for your business, you may check why you need EIN.

Step 4: License and Permit for General Partnership in New Hampshire

Before your general partnership business operates in New Hampshire, you must have a business license first. A business license is a document issued by a government agency that permits you to operate your business in the geographic region that that agency governs.

To legally operate your partnership, you must apply for a business license to New Hampshire Secretary of State. In some states, you might need to obtain a Privilege License. Based on the business structure, you might need it. In New Hampshire, partnership businesses do not need to get to obtain a privilege license. You might even need more than one license in New Hampshire. Numerous general partnership licenses need to be filed and renewed regularly.

Step 5: Obtain New Hampshire Tax ID Number

In New Hampshire, to conduct a business, you must comply with the New Hampshire Department of Revenue Administration. If you have a general partnership in New Hampshire, you must obtain the New Hampshire Tax ID number from New Hampshire Department of Revenue Administration. Your partnership business must pay state taxes (if applicable).

Step 6: Open a Bank Account

Once you have filed and received your general partnership license, you should now open a bank account since you will use this account for yourself, your clients, and your employees.

Your business dealings in New Hampshire might be simpler with a US business bank account because it boosts your company’s legitimacy and liquidity. Most banks demand an EIN for creating a business bank account for firms other than sole proprietorships. Also, keeping separate finances helps you avoid combining personal and professional finances.

Example of General Partnership in New Hampshire

Individuals looking to collaborate and numerous kinds of service providers have chosen general partnerships as their preferred business entity. That’s frequently because of its simple design, low price, and simplicity of setup. Some general partnership examples include:

  • Providing professional services (architectural firms, medical clinics, etc.)
  • Selling goods at retail
  • Opening a restaurant
  • Business Consulting

General partnerships are also formed by partners who are spouses or other family members who want to operate a business together.

Important Information

Maintaining Business License in New Hampshire

Now that you have established your general partnership, you must maintain or renew your business license every now and then. Make time to check the status of your licenses at least once per year. Then, you can keep from missing anything significant. If there are any issues, you can address them.

Paying your Taxes in New Hampshire

Even if you have established your general partnership in New Hampshire, pay your taxes and keep everything up to date so you won’t pay any penalty. New Hampshire tax information will help you with what to pay before or during the operation of your professional corporation. You must check with New Hampshire Department of Revenue Administration for more details.

Advantages of General Partnership in New Hampshire

  • Foundation only requires two people: Forming a general partnership doesn’t need many people to operate. You can form a general partnership with a partner in mind and a business plan. It can be a group of friends or colleagues, a family member, or a spouse and wife partnership.
  • Equal Rights: Everyone is granted equal rights when a business is founded using a general partnership; each partner is free to express their ideas and choose what is best for the company’s success.
  • Management Option: One of the advantages of joining a general partnership is the opportunity to select the finest management options for the company. For this reason, large partnerships should draft an agreement describing each partner’s responsibilities inside the business. As a result, each partner’s leadership abilities are enhanced.
  • Flexibility: General Partnership is the basic form of a business structure since it can be converted into any business entity, such as LLC. If you have flexibility in applying for an LLC in New Hampshire, you will have default rules set by law, and you need to have an operating agreement for this.
  • Pass-through taxation: The pass-through tax structure will make the general partnership business not pay twice the tax. Due to this structure, most start-ups and entrepreneurs in New Hampshire apply for a GP or LLC. And one of the main advantages of a general partnership is that partners don’t have to pay for the losses collectively.

FAQs

What is a general partnership in New Hampshire?
A general partnership in New Hampshire is a business entity composed of two or more partners who have agreed to combine their resources to operate a business.
What are the advantages of forming a general partnership in New Hampshire?
Some advantages of forming a general partnership in New Hampshire include the ease of formation, the shared liability for debts and obligations, and the flexibility in how profits and losses are allocated.
How do I form a general partnership in New Hampshire?
General partnerships in New Hampshire are formed when two or more people decide to combine their resources and business skills to operate a business. The partnership must be registered with the New Hampshire Secretary of State and a partnership agreement must be created.
Who can form a general partnership in New Hampshire?
Any two or more individuals, trusts, estates, or corporations can form a general partnership in New Hampshire.
Are general partnerships in New Hampshire required to register with the state?
Yes, general partnerships in New Hampshire are required to register with the New Hampshire Secretary of State by filing a Certificate of Partnership.
Is there a fee to file a Certificate of Partnership in New Hampshire?
Yes, the fee to file a Certificate of Partnership in New Hampshire is $100.
Where do I file my Certificate of Partnership in New Hampshire?
The Certificate of Partnership must be filed with the New Hampshire Secretary of State.
Is a partnership agreement required for a general partnership in New Hampshire?
Yes, a partnership agreement is required for a general partnership in New Hampshire.
Do general partnerships in New Hampshire have to pay taxes?
Yes, general partnerships in New Hampshire must file a business tax return and pay taxes on the profits of the business.
Are there any other fees or taxes due when forming a general partnership in New Hampshire?
Depending on the type of business, there may be state or local licenses, permits, or other fees or taxes due when forming a general partnership in New Hampshire.
Do general partnerships in New Hampshire have to have a registered agent?
Yes, general partnerships in New Hampshire must have a registered agent or registered office in order to receive official documents and notices.
How are profits and losses shared in a general partnership in New Hampshire?
In a general partnership in New Hampshire, profits and losses are shared according to the terms of the partnership agreement, unless the agreement states otherwise.
Are general partnerships in New Hampshire liable for the debts and obligations of the business?
Yes, general partnerships in New Hampshire are jointly and severally liable for the debts and obligations of the business.
Is a general partnership in New Hampshire responsible for withholding taxes on employees?
Yes, a general partnership in New Hampshire is responsible for withholding taxes on employees and must file the appropriate forms with the New Hampshire Department of Revenue.
Does a general partnership in New Hampshire need to file an annual report?
Yes, a general partnership in New Hampshire is required to file an annual report with the New Hampshire Secretary of State.
What is the penalty for failing to file an annual report in New Hampshire?
The penalty for failing to file an annual report in New Hampshire is a $50 late fee.
Does a general partnership in New Hampshire need to obtain insurance?
Yes, a general partnership in New Hampshire should obtain insurance to protect the business and its partners from liability.
What type of insurance does a general partnership in New Hampshire need?
A general partnership in New Hampshire should obtain general liability insurance, business property insurance, and professional liability insurance.
Is a general partnership in New Hampshire required to keep records?
Yes, a general partnership in New Hampshire is required to keep records of all business transactions for seven years.
Does a general partnership in New Hampshire need to have regular meetings?
Yes, a general partnership in New Hampshire should have regular meetings to discuss business operations and make decisions.
Who is responsible for managing the business of a general partnership in New Hampshire?
The partners of a general partnership in New Hampshire are responsible for managing the business, although they may delegate certain tasks to employees or other third parties.
Is a general partnership in New Hampshire a separate legal entity?
No, a general partnership in New Hampshire is not a separate legal entity; the partners are personally liable for the debts and obligations of the business.
How does a general partnership in New Hampshire end?
A general partnership in New Hampshire ends when the partners agree to dissolve the partnership or when one or more of the partners dies, becomes incapacitated, or withdraws from the partnership.
What are the filing requirements for dissolving a general partnership in New Hampshire?
The filing requirements for dissolving a general partnership in New Hampshire vary depending on the type of entity that is being dissolved.
Does a general partnership in New Hampshire need to file a final tax return?
Yes, a general partnership in New Hampshire must file a final tax return when the partnership is dissolved.
Are there any other documents that must be filed when dissolving a general partnership in New Hampshire?
Yes, the partners of a general partnership in New Hampshire must file a Certificate of Dissolution with the New Hampshire Secretary of State.
Is there a fee to file a Certificate of Dissolution in New Hampshire?
Yes, the fee to file a Certificate of Dissolution in New Hampshire is $100.
What is a General Partnership in New Hampshire?
A general partnership in New Hampshire is a business entity where two or more individuals join together to conduct business. The partners share in the profits, losses, and liabilities of the business.
How do I form a General Partnership in New Hampshire?
To form a general partnership in New Hampshire, you need to register with the Secretary of State. The registration form must include the name of the partnership and the names of the partners.
What are the filing requirements for a General Partnership in New Hampshire?
The filing requirements for a general partnership in New Hampshire include filing an initial registration statement and annual reports. The annual reports must include the names of the partners, the registered address of the business, and the amount of capital contributed by each partner.
What are the taxes for a General Partnership in New Hampshire?
General partnerships in New Hampshire are subject to the state’s business tax and corporate income tax. The business tax is 0.75% of the partnership’s net income. The corporate income tax rate is 8.5%.
What are the liability protections for a General Partnership in New Hampshire?
General partnerships in New Hampshire do not provide liability protection for the partners. Each partner is personally liable for the debts and liabilities of the partnership.
How can I dissolve a General Partnership in New Hampshire?
To dissolve a general partnership in New Hampshire, the partners must file a Certificate of Dissolution with the Secretary of State. The Certificate must include the name of the partnership and the date of dissolution.
Are there any special licenses or permits required for a General Partnership in New Hampshire?
Depending on the type of business being conducted, a general partnership in New Hampshire may need to obtain certain licenses or permits. It is important to research the type of business and any applicable requirements prior to forming the partnership.
What are the reporting requirements for a General Partnership in New Hampshire?
The reporting requirements for a general partnership in New Hampshire include filing an annual report and any necessary tax returns. The annual report must be filed with the Secretary of State and should include the names of the partners, the registered address of the business, and the amount of capital contributed by each partner.

Also Read

Why Create General Partnership New Hampshire is So Important

One of the key reasons why creating general partnerships in New Hampshire is so important is the ability to leverage diverse skills and expertise. When individuals come together to form a partnership, they bring a wide range of skills and experiences to the table. This diversity can be incredibly valuable when trying to tackle complex challenges or pursue ambitious goals. By working together, partners can combine their strengths, fill in each other’s weaknesses, and ultimately achieve more than any one individual could on their own.

General partnerships also offer a level of flexibility that other business structures simply cannot match. Unlike corporations, which are subject to strict legal requirements and regulations, general partnerships can be formed quickly and easily, with minimal paperwork and legal hoops to jump through. This makes them an appealing option for entrepreneurs who want to start a business without getting bogged down in red tape.

Furthermore, general partnerships allow partners to share both the responsibilities and the rewards of running a business. In a partnership, each partner has a vested interest in the success of the enterprise, as well as a role to play in its management and operations. This shared responsibility can help to minimize the risk for each individual partner while also ensuring that the workload is evenly distributed.

In addition, general partnerships provide a level of autonomy and control that may be lacking in other business structures. Unlike corporations, where decision-making is often centralized and top-down, in a partnership, all partners have a say in how the business is run. This can lead to more collaborative decision-making processes, as well as a greater sense of ownership and investment in the success of the business.

Finally, general partnerships offer a level of personal connection and camaraderie that can be hard to come by in other business structures. When partners come together to form a partnership, they are often friends, family members, or colleagues who share a common vision and a strong personal bond. This can create a sense of trust and loyalty that is difficult to replicate in a more formal business setting.

For all of these reasons, creating general partnerships in New Hampshire is a vital part of building a vibrant and diverse business community. By encouraging collaboration, flexibility, shared responsibility, autonomy, and personal connection, general partnerships can help entrepreneurs to achieve their goals and build successful enterprises that benefit not only the partners themselves but also the wider community. In a world where competition is fierce and challenges are numerous, general partnerships offer a unique and valuable model for doing business that should not be overlooked.

Conclusion

In conclusion, starting a general partnership in New Hampshire may effectively combine resources, expertise, and creativity to achieve your mutual business goals. By understanding the legal requirements, drafting a thorough partnership agreement, and registering your partnership, you’ll be well on your way to a successful collaboration. As you embark on this exciting journey, remember to maintain open communication and stay committed to the shared vision that inspired your partnership in the first place.

Leave a Comment