A limited liability company (LLC) is a sort of business structure that affords its owners a degree of protection from being held personally liable for the debts and obligations of the corporation. A professional limited liability company (PLLC), on the other hand, is a specific kind of LLC that is generally utilized by qualified professionals that offer services to clients, such doctors, lawyers, and accountants. Limited liability protection is a feature of both LLCs and PLLCs, but there are some significant distinctions between the two.
The kinds of services that LLCs and PLLCs are permitted to offer is one of the key distinctions between them. PLLCs are primarily limited to offering licensed professional services, including legal or medical services. This means that if you want to create a PLLC, you need to have a professional license and your business needs to offer professional services.
The manner LLCs and PLLCs are taxed is another distinction between them. Depending on how they are set up, LLCs can be taxed as either a partnership or a corporation. Contrarily, PLLCs are always taxed as corporations. This means that they may also be subject to other corporate taxes, such the New Hampshire Business Profits Tax, in addition to corporate income tax rates.
Businesses that generate taxable business profits in the state of New Hampshire are subject to the state’s business profits tax. The current tax rate for the 2021 tax year is 7.7%. This tax is levied against LLCs and PLLCs that generate taxable business profits in New Hampshire.
In New Hampshire, distributions from partnerships are typically taxable. You must include your portion of the partnership’s income on your personal income tax return if you are a partner in a partnership that conducts business in New Hampshire. The New Hampshire Interest and Dividends Tax may also apply to you.
You must designate a registered agent if you are creating an LLC or PLLC in New Hampshire. A registered agent is a person or firm that has been given permission to accept legal paperwork on your company’s behalf. Suits, subpoenas, and other legal notices are included in this. Your registered agent must reside in New Hampshire, have a physical address, and be accessible during regular business hours.
Finally, creating an LLC is doable without a business. To hold real estate or other assets, for instance, you would want to create an LLC. In this scenario, the LLC wouldn’t be conducting any business operations, but it would still provide its owners with minimal liability protection.
In conclusion, both LLCs and PLLCs are business structure types that provide their owners with limited liability protection. A specific kind of LLC that is frequently employed by licensed professionals is a PLLC. The New Hampshire Business Profits Tax may apply to LLCs and PLLCs, and partnership distributions in New Hampshire are often taxed. You must designate a registered agent if you are creating an LLC or PLLC in New Hampshire. Finally, creating an LLC is doable without a business.
Creating a business strategy, selecting a legal structure, registering your company with the government, securing the essential licenses and permissions, opening a business bank account, and securing capital or financing are just a few of the stages involved in starting your own business. Depending on your business’s type and location, the particular procedure could change. To make sure you are adhering to all legal obligations and making wise judgments, it is advised to speak with a lawyer or accountant.
You must submit a Statement of Change of Registered Agent and/or Registered Office to the New Hampshire Secretary of State’s office in order to change the registered agent for your LLC in that state. There is a filing fee and this form can be submitted either online or by mail. The state will formally acknowledge the new registered agent after the form has been submitted and accepted. To guarantee that crucial legal and tax documents are provided to the LLC in a timely manner, it is crucial to update the registered agent information with the state.