How to Create a General Partnership in New Hampshire | A Complete Guide


Steve Bennett
Steve Bennett
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Create a General Partnership in New Hampshire

If you would like to create a general partnership in New Hampshire, there are a few guidelines that you should understand. A general partnership is one of the things that a businessman considers since it comprises two or more entities to carry on a trade or business. Each partner contributes money, property, labor, or special skills, and each partner shares in the profits and losses from the business. You can start an LLC in New Hampshire for your general partnership to personally carry potentially unlimited liability.

Knowing about the general partnerships will benefit you and several partners, making you form your business properly. If you want to know more about the general partnership, follow our steps to Create a General Partnership in New Hampshire.

Webinarcare Editorial Team will help you create with thorough research and market study. Before starting a general partnership in New Hampshire, you must be guided by all the factors we have gathered in this article.

What is General Partnership in New Hampshire?

A general partnership in New Hampshire is a business structure where two or more individuals come together to establish a business and agree to share the profits, losses, and management responsibilities. Each partner contributes skills, resources, and capital to the business and makes decisions collaboratively. In a general partnership, partners have unlimited personal liability for the debts and obligations of the business, meaning their personal assets can be used to cover any debts or liabilities incurred by the partnership. This type of business structure is relatively simple to form and offers flexibility in decision-making and management but lacks the legal protection of limited liability offered by other structures like New Hampshire Corporations or limited liability partnerships.

It is recommended that you consult to New Hampshire Business Attorney before beginning the process of forming your general partnership. They will understand what is best for you and your company. To shield your personal assets from corporate debts, you can always Start an LLC in New Hampshire rather than a general partnership.

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Example of a General Partnership

An example of a general partnership could be a small marketing agency created by two friends, Shane and Jane. Shane has a background in graphic design, while Jane has experience in digital marketing strategies. They decide to join forces and create a marketing agency that offers clients a combination of their expertise.

Shane and Jane contribute their skills, resources, and capital to start the business. They agree to share the profits, losses, and management responsibilities. Both partners actively participate in the agency’s day-to-day operations, making decisions and working with clients collaboratively.

In this general partnership, Shane and Jane have unlimited personal liability for any debts or obligations incurred by their marketing agency. If the agency faced financial difficulties, both partners’ personal assets could be used to cover the debts. However, the simplicity and flexibility of the general partnership structure allow them to manage and grow their business together easily.

Individuals looking to collaborate and numerous 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: 

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

Steps in Creating a General Partnership in New Hampshire

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

Step 1: Choose a Business Name

Naming your business is one of the most important activities during the startup phase, especially if you will form an LLC in New Hampshire. Your general partnership name serves as the foundation for your brand 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. 

For example, let’s assume the general partnership focuses on providing eco-friendly landscaping solutions. A potential name for this partnership could be “GreenScape Innovations.” This name highlights the business’s core values (eco-friendly) while also showcasing the industry (landscaping) and the innovative approach the partners aim to bring to the market.

For your to come up with this business name idea, here are some guidelines to consider when choosing a name for a general partnership:

  • Reflect on the Nature of the Business: Choose a name representing your products or services, and communicate your business’s essence to your target audience.
  • Keep it Simple and Memorable: A short, easy-to-pronounce name will be easier for customers to remember and share with others.
  • Make it Unique: Research the names of other businesses in your industry to ensure your chosen name stands out and does not infringe on any existing trademarks or copyrights.
  • Consider the Partners’ Names: Some general partnerships incorporate the partners’ names in the business name (e.g., Smith & Johnson Consulting). However, this approach may only be suitable for some businesses, especially if the names are difficult to pronounce or remember.
  • Test the Name: Share the potential name with friends, family, and potential clients to gather feedback and ensure it resonates with your target audience.
  • Check for Domain Availability: Research the availability of your chosen name as a domain name for your website and on social media platforms to ensure a consistent online presence.
  • Avoid Limiting your Business Scope: Choose a flexible name to accommodate future product or service changes. Avoid using specific locations, product names, or niche markets in the name if you plan to expand or diversify later.
  • Comply with Legal Requirements: Ensure the chosen name complies with any legal requirements or restrictions in your jurisdiction, such as avoiding misleading or offensive terms.
  • Consider Professional Input: Consult with New Hampshire Business Attorney or trademark specialist to ensure your chosen name is legally sound and can be registered as a trademark if necessary.

By following these guidelines, you can choose a name for your general partnership that is memorable, unique, and effectively communicates your business’s essence.

In addition, most general partnership businesses use the last name of all of their partners.  For instance, if Jennie Kim and Lalisa Manoban enter business together, the partnership name is “Kim & Manoban” by default. 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 DBA in New Hampshire with New Hampshire Secretary of State.

Filing a DBA in New Hampshire has three methods, online, by mail, and in person filing., which costs around $50. There is five years validity in renewing your DBA. 

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 in the New Hampshire Secretary of State 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 crucial document that outlines the terms and conditions governing a partnership. It helps to establish a clear understanding of each partner’s roles, responsibilities, and expectations and prevents disputes and misunderstandings.

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:

  • Business name
  • Description of the business
  • Contact information of the business and its owners

Ownership of all business partners, decision-making, capital contribution, profits and distribution, death and disability, and withdrawal and addition of partners is one of the key factors to consider when forming or creating a partnership agreement. In this way, all business partners will understand what this is all about and how to proceed if the mentioned scenarios happen. 

Without a partnership agreement, your company will often be subject to the general partnership default laws of New Hampshire. The default laws might not be appropriate for your requirements.

Step 3: Request an EIN in New Hampshire

After completing the partnership agreement, you should get or seek an Employer Identification Number (EIN) in New Hampshire. An EIN will serve as your general partnership’s tax identification number. The Internal Revenue Service can provide you with an EIN. (IRS). It is a nine-digit number comparable to your Social Security number. EIN, on the other hand, is distinct from SSN. It is exclusively used for business-related operations, such as filing general taxes. The form must be filled out and sent to the IRS website. Obtaining an EIN cost between $30 and $280. 

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

  • Apply Online- The Online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4PDF application to the appropriate fax number), after ensuring that Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four 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.

You can benefit in various ways once you obtain your EIN number. It will give your general partnership the final advantage to operate at its full potential without legal or court problems.

Step 4: Get a License and a Permit

You must have New Hampshire Business License before your general partnership business operates. A business license is a document granted by a government agency that allows you to operate your business in the territory governed by that agency.

To legally operate your partnership, you’ll need a business license. You may need more than one license in New Hampshire. Numerous general partnership licenses need to be filed and renewed regularly.

In New Hampshire, the business license fee costs about $50 – $300.

You can check out the United States Business License & Licensing Fee Resources for more information about the costs in New Hampshire.

Step 5: Open a Bank Account

After filing and receiving your general partnership license, you should open a bank account for yourself, your clients, and your employees.

A US bank account may make your business dealings in New Hampshire easier because it increases your company’s authenticity and profitability. Most banks require an EIN for firms other than sole proprietorships to open a business account. Keeping separate finances also prevents you from combining personal and professional finances.

If you would like to open a bank account in New Hampshire, check out the Best Bank for New Hampshire Small Business.

Pros and Cons of a General Partnership in New Hampshire

In forming a general partnership in New Hampshire, there are pros and cons that you may experience. I will list the pros and cons for you to understand why and how a general partnership is crucial. 

Pros of Forming a General Partnership in New Hampshire

  • Easy and Inexpensive to Form: General partnerships are relatively simple to establish, requiring minimal paperwork and registration costs compared to other business structures like corporations or limited liability companies.
  • Decision-Making: Partners can pool their skills, knowledge, and resources, leading to more efficient and effective decision-making and business operations.
  • Flexibility: General partnerships offer flexibility in management structure, profit distribution, and decision-making processes, allowing partners to customize their business relationships to best suit their needs.
  • Tax Benefits: In most jurisdictions, general partnerships are not taxed as separate entities. Instead, profits and losses are passed through to the partners, who report them on their income tax returns. This avoids the issue of double taxation that affects corporations.
  • Greater Access to Capital: With multiple partners, a general partnership may have increased access to capital and resources compared to a sole proprietorship.

Cons of Forming a General Partnership in New Hampshire

  • Unlimited Personal Liability: In a general partnership, all partners have unlimited personal liability for the debts and obligations of the business. This means that each partner’s personal assets can be used to cover any debts incurred by the partnership, which can be a significant risk.
  • Potential for Conflicts: As partners share management and decision-making responsibilities, disagreements or conflicts can arise, negatively impacting the business’s operations and success.
  • Limited Lifespan: A general partnership’s existence is often tied to the lives of its partners. The partnership may be dissolved if a partner withdraws, becomes incapacitated, or dies, potentially leading to instability and uncertainty.
  • Difficulty in Raising Capital: While general partnerships may have more access to capital than sole proprietorships, they may still need help raising funds compared to corporations or limited liability companies, as investors may be more hesitant to invest in a business with unlimited personal liability.
  • Lack of Legal Distinction: Unlike corporations or limited liability companies, general partnerships do not have a separate legal identity from their partners, limiting the partnership’s ability to enter into contracts or own property in its name.

When considering a general partnership, weighing the pros and cons and assessing whether this business structure aligns with your goals, risk tolerance, and desired level of management involvement is essential.

Maintain Business License in New Hampshire

You must maintain or renew your business license regularly now that you have established your general partnership. Make time at least once a year to check the status of your licenses. Then you will get everything important. You can deal with any problems that arise. In New Hampshire, the business license fee ranges from $50 – $300, and varies by jurisdiction and license type.

Pay 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 taxes information will help you with what to pay before or during the operation of your professional corporation. You can check out the New Hampshire Small Business Taxes to further understand why you must pay your taxes on time. 

Can I Convert My General Partnership Into Another Business Entity in New Hampshire?

By following the appropriate state procedures, you can convert your general partnership into another business entity, such as New Hampshire Corporation converting to an LLC; or Sole Proprietorship to New Hampshire LLC. This may involve filing conversion documents with the New Hampshire Secretary of State’s office and paying any required fees.

FAQs

What is a general partnership?
A general partnership is a type of business entity where two or more owners share equal responsibility for the business’s finances, operations, and liabilities.
What steps do I need to take to create a general partnership in New Hampshire?
To create a general partnership in New Hampshire, you and your partner(s) must file a “Registration of Partnership” form with the Secretary of State’s Office.
Do I need to have a written agreement with my partner(s) to form a general partnership in New Hampshire?
No, a written agreement is not required to form a general partnership in New Hampshire, but it is highly recommended. It can help clarify each partner’s responsibilities, expectations, and rights.
Do I need to register my partnership with the IRS in New Hampshire?
No, general partnerships do not need to register with the IRS. Each partner will file their share of business income or losses on their individual tax returns.
What are the registration fees to create a general partnership in New Hampshire?
The registration fee for a general partnership in New Hampshire is $50.
How many partners can a general partnership have in New Hampshire?
A general partnership in New Hampshire can have 2 to 6 partners. If there are more than 6 partners, the partnership must register as a Limited Liability Partnership (LLP).
Can I change the partnership’s name after registering in New Hampshire?
Yes, it is possible to change the partnership’s name after registering in New Hampshire. You will need to file an Amendment of Partnership form and pay a $25 filing fee.
Is a general partnership in New Hampshire required to have a physical address?
Yes, a general partnership in New Hampshire is required to have a physical address, which can be a commercial or residential property.
Where can I find a partnership registration form in New Hampshire?
The “Registration of Partnership” form is available on the New Hampshire Secretary of State’s website.
Can a partnership in New Hampshire own property?
Yes, a partnership in New Hampshire can own and hold assets and property in the name of the partnership.
How does a partnership in New Hampshire dissolve?
A partnership in New Hampshire can dissolve by mutual agreement of the partners, by bankruptcy, or by a court order.
Can a partnership in New Hampshire add new partners?
Yes, a partnership in New Hampshire can add new partners as long as all partners agree.
What is the difference between a general partnership and a limited partnership in New Hampshire?
In a general partnership in New Hampshire, all partners share equal responsibility for the business operations and are liable for any debts of the business. In a limited partnership, there is at least one general partner who is responsible for managing the business, while limited partners have no control over the business and are only responsible for contributing capital.
Can a partnership in New Hampshire register as an LLC later?
Yes, a general partnership in New Hampshire can later register as a Limited Liability Partnership (LLP) or a Limited Liability Company (LLC).
How long does it take to form a partnership in New Hampshire?
Forming a partnership in New Hampshire typically takes between 1-3 weeks from filing the registration paperwork to receiving confirmation from the Secretary of State’s Office.
Do partners in a New Hampshire general partnership have to live in the state?
No, partners in a New Hampshire general partnership can live outside the state.
Can a non-resident alien be a partner in a general partnership in New Hampshire?
Yes, a non-resident alien can be a partner in a general partnership in New Hampshire.
Can the partnership itself be a partner in a general partnership in New Hampshire?
No, a partnership cannot enter into a general partnership in New Hampshire.
Can I change the business structure of my partnership in New Hampshire?
Yes, it is possible to change the business structure of a partnership in New Hampshire to an LLC, Corporation, or other entity by filing the proper paperwork and paying any applicable fees.
Do general partnerships have limited liability in New Hampshire?
No, general partnerships do not offer limited liability protection in New Hampshire. Each partner is personally liable for the debts and obligations of the business.
What happens if a partner in a New Hampshire general partnership is sued?
If a partner in a New Hampshire general partnership is sued, all partners are personally liable for the damages up to the total value of the partnership’s assets.
What should I include in my partnership agreement in New Hampshire?
A partnership agreement in New Hampshire should include a description of each partner’s responsibilities, the profit and loss-sharing formula, dispute resolution procedures, and criteria for admission of new partners.
Can a partner’s interest be transferred in a New Hampshire general partnership?
Yes, the partnership agreement can establish the procedure for transferring a partner’s interest to a new party.
Can partners be added or removed from a partnership agreement in New Hampshire?
Yes, the partnership agreement can establish the procedure for adding or removing partners based on events such as death, disability, or resignation.
Do general partnerships in New Hampshire require an operating agreement?
Operating agreements are not mandatory in New Hampshire, but they are highly recommended for the clarity they provide around governance, operations, and management of the partnership.
Do I need a lawyer to create a partnership in New Hampshire?
While you do not need a lawyer to create a partnership in New Hampshire, it is highly recommendable that you get a lawyer to help draft an agreement that protects the interests of all parties.
Can I form a nonprofit partnership in New Hampshire?
Yes, you can form a nonprofit partnership in New Hampshire if the purpose is to engage in activities that promote charitable and public purposes.
Can a partnership in New Hampshire have employees?
Yes, a partnership in New Hampshire can have employees and is responsible for complying with employment laws and regulations.
Can my partner file the partnership registration form in New Hampshire?
Yes, any partner can file the partnership registration form in New Hampshire, or it can be filed by an authorized third party on behalf of the partners.
What is a general partnership in New Hampshire?
A general partnership is a type of business organization where two or more individuals share ownership, management, and profits or losses.
How many partners can form a general partnership in New Hampshire?
At least two partners are required to form a general partnership in New Hampshire.
Do I need to register my general partnership in New Hampshire?
No, registration of a general partnership is not required in New Hampshire, but it is recommended to file a Partnership Agreement with the Secretary of State.
How do I create a Partnership Agreement for my general partnership in New Hampshire?
A Partnership Agreement can be drafted by the partners themselves or with the assistance of an attorney. It should detail how the business is operated, how profits will be shared, and how the partnership will be dissolved.
How are taxes paid for a New Hampshire general partnership?
A general partnership in New Hampshire is not subject to corporate income tax, but it is responsible for paying state and federal income tax on its profits. Each partner will report their share of the profits on their individual tax returns.
Can a general partnership in New Hampshire issue stock or issue debt?
No, a general partnership in New Hampshire cannot issue stock or borrow money in the name of the partnership. Each partner is personally liable for any debt or obligations of the partnership.
Do general partnership agreements in New Hampshire need to be notarized?
No, general partnership agreements do not need to be notarized in New Hampshire. As long as the agreement is signed by all partners, it will be considered valid.
How can I dissolve my general partnership in New Hampshire?
A general partnership in New Hampshire can be dissolved by a written agreement between the partners or by court order. The partners will need to distribute all assets, pay all debts, and terminate any agreements associated with the partnership.
Do I need to file an annual report for my general partnership in New Hampshire?
No, general partnerships in New Hampshire are not required to file annual reports. However, partnerships should keep accurate financial records and prepare tax returns each year.
Can a general partnership in New Hampshire have employees?
Yes, a general partnership can have employees in New Hampshire. Partnerships can also hire independent contractors and subcontractors.
Can separate partnerships join together to form a new general partnership in New Hampshire?
Yes, two or more partnerships in New Hampshire can opt to join together and form a new general partnership, following stipulated state laws.
Can a corporation be a partner in a New Hampshire general partnership?
Yes, a corporation can be a partner in a general partnership in New Hampshire.
Can a business name be trademarked on behalf of a New Hampshire general partnership?
Yes, if a business name meets the criteria for trademark registration. It involves obtaining a Registered Trademark to secure the business’s name and identity to avoid any issues legally, evidently protecting the partnership in question.
Can a general partnership in New Hampshire be converted to a corporation?
Yes, a general partnership in New Hampshire can be converted to a corporation as long as it follows the legal requirements to create a corporation.
Can assets be transferred to another general partnership in New Hampshire?
Yes, assets can be transferred from one general partnership in New Hampshire to another with the agreement of all partners and according to proper state laws.
Can a general partnership in New Hampshire be created for a sole purpose?
Yes, a general partnership may be created for a single closely defined the purpose, with all-parties agreement for the lifetime led by business transactions and activities, up to dissolution or completion.
Is there a residency requirement to become a partner in a general partnership in New Hampshire?
No, there is no residency requirement to become a partner in a general partnership in New Hampshire, but obtaining an Identification document plays an integral part in valid partnership identification and tax registration.
Can a New Hampshire general partnership be registered as a foreign partnership in another state?
Yes, a New Hampshire general partnership can be registered as a foreign partnership in another state to conduct business as a diverse business entity.
Are there any filing fees for forming a general partnership in New Hampshire?
Yes, there may be filing fees for filing a Fictitious Name Registration Certificate with the local Clerk’s Office of New Hampshire, entities signed on by the Register of Public Charities and the Commercial Registered Agent.
Can the partners of a New Hampshire general partnership limit their liability?
No, the partners of a New Hampshire general partnership will have unlimited liability for the debts and obligations of the partnership.
Can a limited liability partnership (LLP) be formed in New Hampshire?
Yes, a limited liability partnership can be formed in New Hampshire if it meets the formalities or procedures described under RSA(NNN) NNN-NNNN but not owning to form Limited Liability Company in NH, contradicting state regulations applicable to General Partnership firms.
Can a trust be a partner in a New Hampshire general partnership?
Yes, a trust can be a partner in a New Hampshire general partnership as through trusts also partakes various types of business or venture or since they are states legal entity under jurisdiction with Federal Income Taxes
How is the business income of a partnership taxed in New Hampshire?
In New Hampshire, the income earned by a partnership is taxed based on the individual tax returns of the partners, whereas business Entity tax returns ranging from “$0 to $250,000” may supplement state taxation according to stipulations drafted by Legislation enacted by the State government.
How can I check business operational reports and document of a New Hampshire Authorized General partnership – LLC?
Our official website opens up depository Platform by Secretary of State, and organizations or entities can check agreements and register documents of any stated entity online providing usual credentials like state ID and Secretary of state state ID licence-wise up to a certain date line mentioned therein with exemptions under state directive.
What is a sole proprietorship in New Hampshire?
A sole proprietorship in New Hampshire is a type of business organization where a single individual owns, operates, and is solely responsible for the debts and obligations of the business with all transactions under his/her authority and legally-related decisionmaking of entities exercised singularly.
What is the cost involved in hiring a business lawyer for setting up a general partnership in New Hampshire?
The fees of a business lawyer to set up a general partnership in New Hampshire typically depends on the complexity of the circumstance and cater to the hands-on services a client would prefer, some firms that enlist junior staff charge by the hour, and while additional experts provide the market discovery, publication, or market research, the rates increase according to Exert domain expertise, litigious expertise, inclusion lawyer’s experience, among several other factors.
What are the duties of the local Clerk’s Office in New Hampshire for general partnership registration – Certificates?
The local Clerk office is responsible for signing all administrative Certificates filed through protocols accredited by state provisions, such as designated certificates, state Of oaths related attested pieces of proof etc, as composed by the Governor to be obligated legally duly under signatures with prescribed authorities.

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Conclusion

A general partnership can be viable for individuals looking to establish a business in New Hampshire with shared decision-making, management responsibilities, and profits. This type of business structure is relatively simple to establish and offers flexibility in operations. However, it is essential for potential partners to carefully consider the unlimited personal liability aspect of general partnerships, which means that each partner’s personal assets could be at risk to cover any debts or obligations incurred by the business. Before forming a general partnership, the partners should have a clear and well-drafted partnership agreement that outlines the roles, responsibilities, profit-sharing, and dispute-resolution mechanisms to ensure a smooth working relationship and minimize potential conflicts. Partners should also explore other business structures, like limited liability partnerships or corporations, to determine the best fit for their needs and goals.

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