The form of your business organization can have important liability and tax consequences. While many individuals prefer to do business under a sole proprietorship also known as a “d/b/a”, operating as a sole proprietorship exposes the business owner to personal liability for all debts and claims against the business. It is important to safeguard your assets as much as possible. To minimize personal liability, we recommend that our clients establish a limited liability company (LLC) or C corporation or Sub Chapter S corporation. We will work with you to ensure that you have all the necessary legal documents in place to establish your New Hampshire corporation or LLC, including proper registration with the NH Secretary of State’s Office.

Even if your company has been established for a period of time as a sole proprietorship, it’s never too late to convert your sole proprietorship to an LLC or corporation. By doing so, you will limit your future liability to your actual ownership interest in the business and shield future personal assets.

There also may be tax benefits in converting from a sole proprietorship to a general corporation or LLC that you are missing. Our office can refer you to several local CPAs who can help you determine what form of business organization suits your specific needs.