The New Hampshire limited liability company's (LLC) operating agreement is a legal document that provides detailed information about each member’s contribution, interests, rights, and responsibilities inside the company.
The LLC operating agreement, or business operating agreement, is a document that enables members of the LLC to define all the aspects of their relationship within the company in more detail.
The main reason for this is that the federal and state laws provide a broad framework and leave it to the company members to provide detailed rules for operating their company based on their specific business model.
Is an Operating Agreement Required in New Hampshire?
No, an operating agreement is not required when forming an LLC in New Hampshire. Regardless, many parties choose to draft the operating agreement and optimize the business processes inside the company.
4 Main Types of Operating Agreements
In New Hampshire, you have four main types of operating agreements you can choose to draft for your LLC:
Types of Operating Agreements
Single-member LLC operating agreement: This type of operating agreement is used for LLCs with only one member. It defines how the company will be operated and distinguishes the identity of the company from the identity of a member as an individual.
Multi-member LLC operating agreement: For companies with two or more members, the operating agreement defines the operation of the company, but it also regulates the relationship between the members.
Member-managed LLC operating agreement: Here, the members who want to personally run the company on a day-to-day basis use this operating agreement to define each member's rights and duties in that regard.
Manager-managed LLC operating agreement: If the managers want to delegate the day-to-day operation of the company to the professional manager, they should use this type of operating agreement to define the scope of their authority in the company.
Laws and Legal Requirements for LLC Operating Agreements in New Hampshire
Chapter 304-C of the New Hampshire Statutes regulates the status of limited liability companies in New Hampshire.
Moreover, a few sections of that chapter regulate the status of operating agreements in New Hampshire, namely:
Laws and Legal Requirements
§ 304-C:40: Regulates the form of the operating agreement.
§ 304-C:41: Regulates the binding effect of operating agreements.
§ 304-C:43: Regulates the status of single-member limited liability companies.
§ 304-C:45: Provides that operating agreements may provide rights to any person, including non-parties.
How to Form a Limited Liability Company (LLC) in New Hampshire
The easiest way to form a limited liability company in New Hampshire is to follow the steps outlined below:
How to Form a LLC in New Hampshire
#1. Choose a Business Name For Your LLC
The first step in the LLC formation process is to choose a business name that is distinguishable from other registered names in New Hampshire. Failing to do so can result in your application being rejected.
To check if your business name is distinguishable from other business names, go to the Department of State’s website and do a business search.
#2. Choose the Type of LLC
In New Hampshire, there are two main types of limited liability companies based on the place of their initial formation:
Domestic LLC: This is the LLC established and registered in New Hampshire.
Foreign LLC: This is the LLC established outside of New Hampshire but is operating and registered in New Hampshire.
#3. Nominate an Agent
In this step, you should nominate an individual or an entity that is going to receive official notifications and documents on behalf of your LLC. This can be an individual with a registered address in New Hampshire or an entity with the authority to operate in New Hampshire.
#4. File the Registration Documents
The registration documents differ based on the type of LLC you are establishing.
For foreign LLCs, you should submit the Application for Registration. You can also submit this document online after creating an account or submit the Form FLLC-1 in hard copy.
#5. Pay the Required Fee
The filing fee for both the domestic and foreign LLCs is $100. You can pay it online or write a check and submit it with other documents to the Secretary of State’s Corporation Division.
#6. Create your LLC Operating Agreement
After completing your registration, you can create the operating agreement according to the management structure of your company and the number of members that have established the company.