Setting Up a Business Entity in New Hampshire
If you’re looking to start a new business in New Hampshire, you need to consider setting up a business entity for your company. New Hampshire has a reputation for having a business-friendly tax environment, with no personal income tax or general sales tax.
Establishing as a limited liability company (LLC) creates a personal liability barrier for you from business obligations. Forming a New Hampshire LLC is a simple process and can be accomplished in a few weeks. You’ll also benefit from New Hampshire’s favorable tax laws, which include no state income tax or sales tax.
Obtaining a Business License in New Hampshire
You can obtain a business license in New Hampshire by applying with the relevant licensing or regulatory agency. The agency you apply with will depend on where your business is located and what business activities it engages in.
A business with a gross income of $50,000 or more must pay a 7.7% Business Profits Tax (BPT) on income from business activities in New Hampshire. For taxable periods ending on or after December 31, 2022, the income threshold is increased to $92,000 and the tax rate is reduced to 7.6%. What kind of tax flexibility does an LLC provide?
Steps to Start a Business in New Hampshire
- Choose an idea
- Make a plan
- Pick a structure (sole proprietorship, partnership, LLC, or corporation)
- Know licensing and permits
- Understand zoning
- Get insurance
- Report taxes
Cost of Opening a Business in New Hampshire
Start your New Hampshire business. Choose an idea. Develop a business plan. Pick a structure – sole proprietorship, partnership, LLC or corporation. Register your business name. Know licensing and permits needed. Understand zoning requirements. Report business taxes. Get insurance.
New Hampshire has no sales tax or personal income tax. It offers business-friendly regulations. Some small business ideas include: comic book stores, campgrounds, mushroom farms, distilleries, and night clubs.
When starting a business, pick a structure. Sole proprietorships and partnerships need no state paperwork. Limited liability companies (LLCs) and corporations require $100 state fees but give liability protection.