The three most common business entities in widespread use in New Hampshire are the General Partnership, the Corporation and the Limited Liability Company.
General Partnerships have been used for many years and there accordingly exists a good deal of developed law on this entity. One disadvantage of the General Partnership is the fact that all general partners are personally liable for the debts of the Partnership. New Hampshire also provides for a Limited Partnership.
Corporations have been in use for hundreds of years and again, there exists fully developed law on this entity. Most small, closely held corporations elect SubChapter “S” tax treatment under the Internal Revenue Code to minimize income taxes to the shareholders.
The newest business entity is the Limited Liability Company. This form of doing business continues to become more and more popular and appears to be favored by many Certified Public Accountants. The entity combines the limited liability of a corporation with the relative informality of doing business as a partnership or as a sole proprietor.
Each form of doing business has its strengths and weaknesses; accordingly, each client’s individual needs and type of business should be analyzed.
Our attorneys are also experienced with the formation and ongoing operation of Non-Profit Corporations.