How to Start a Business in New Hampshire (Updated 2024)

If you'd like to form a business in New Hampshire, you must become familiar with the state's business laws. You'll also need to take care of all the basic tasks of starting your business, including registering your business with the state, applying for licenses, and paying business taxes.

Here's an overview of the key steps you'll need to take to start your own business in New Hampshire.

1. Choose a Business Idea

Your first task is picking a business idea. Take into consideration your interests, skills, resources, and availability. You'll likely have better luck in an industry where you already have experience. For example, if you have experience organizing and cooking food for large events, you might find success in starting a catering business.

Before you commit to an idea, you should evaluate its likelihood of success. Consider the needs of your community and the competition. Run a cost-benefit analysis to get a better understanding of the risks involved as well as the potential advantages. You should also develop a business plan to help you make your decision. In your plan, you should strive to answer questions like:

• What would my startup costs be?
• Do I have enough capital to sustain my business until I can make it profitable?
• What's the minimum investment you need to start your business?
• Which expenses are necessary vs. discretionary?
• How long would it be before my business could make a profit?
• Which marketing strategies should I deploy?
• What sort of financing (for example, business loans and capital investment) should I pursue for my business?

Read our FAQ on evaluating your business idea for more tips.

2. Decide on a Business Legal Structure

With your idea in hand, you need to start building your business. At this stage, you must decide on a business structure. Each entity structure has advantages and disadvantages. Your chosen structure will affect how your business is owned and managed, how you legally create and maintain your business, how you file your taxes, and the liability owners have for the business's debts and obligations.

The most common legal structures for a small business are:

• sole proprietorships
• partnerships
• limited liability companies (LLCs), and
• corporations.

Depending on your intended business ownership and activities, you might have other options for your business structure.

Other types of partnerships: In New Hampshire, you can form a limited partnership or a limited liability partnership (LLP), which are types of partnerships where some partners have limited liability.

Professional corporations and LLCs: If you provide a professional service, you have the option of forming a professional corporation or professional LLC in New Hampshire. In general, a "professional service" is a service that requires a license, registration, certification, or other authorization. (N.H. Rev. Stat. § 304-D: 1 (2024).)

Depending on which business structure you choose, you might be able to elect to become an S corporation, a tax entity. Different types of businesses, such as LLCs and corporations, can elect to be taxed as S corporations but legally remain corporations or LLCs. If you have specific questions, you should speak with a tax attorney or other tax professional.

3. Choose a Name for Your New Hampshire Business

After you've chosen a business idea and entity structure, you need to come up with a name for your business. Choose a business name that's unique and marketable. You want to choose a business name that's easy for customers to look up and remember. You also want a name that matches the business image you want to cultivate.

In New Hampshire, like in most states, your business name must be distinguishable (different enough) from the names of other business entities already on file with the New Hampshire Department of State (DOS). You can look for available names by doing a business search through the DOS website.

Entity name designators: For most business entities, New Hampshire law requires you to include certain words that identify your business's entity structure (like including a word such as "LLC" for LLCs or "Incorporated" for corporations). See our article on how to form a New Hampshire LLC for more information.

Reserving your business name: You can reserve an available name for 120 days by filing an Application for Reservation of Name online or by mail with the DOS. As of 2024, the filing fee to reserve or renew a name is $15 for most business entities.

Registering a trade name: If you're a sole proprietor doing business under a name other than your own name, a partnership using a trade name, or an LLC, corporation, or other registered business using a business name besides your registered name, then you need to register that trade name. A trade name can also be called a "DBA," "fictitious name" or "assumed name." To register your trade name, file a Trade Name Registration with the DOS. As of 2024, the filing fee is $50 to register a trade name. (N.H. Rev. Stat. § 349-1 (2024).)

If you conduct business online, you might want to register your business name as a domain name. Moreover, to avoid trademark infringement issues, you should do a federal and state trademark search to make sure the name you want to use isn't the same as or too similar to a name already in use.

4. Register Your Business Entity With the New Hampshire Department of State

You can register your business online using NH Quickstart or by mail. Visit the forms and fees section of the DOS website for downloadable forms and links to online registration. Some business types don't require you to file any paperwork.

Here's how to form each type of business:

• Sole proprietorship: You don't need to file any organizational documents with the state to establish a sole proprietorship in New Hampshire.
• General partnership: To create a general partnership in New Hampshire, as with a sole proprietorship, you don't need to file any organizational documents with the state. However, you should draft a partnership agreement to establish the rules for how your partnership will be managed and how the assets and liabilities will be divided among the partners.
• Limited partnership: To form a limited partnership in New Hampshire, you must file a Certificate of New Hampshire Limited Partnership with the DOS.
• Limited liability partnership (LLP): You can form an LLP in New Hampshire by filing a Limited Liability Partnership Registration with the DOS.
• LLC: To create an LLC in New Hampshire, you must file a Certificate of Formation with the DOS. You should also prepare an operating agreement to lay out the basic rules for your LLC's operations.
• Professional LLC: Licensed professionals of qualified services can form a professional LLC in New Hampshire by filing a Certificate of Formation for a Professional LLC with the DOS.
• Corporation: To create a New Hampshire corporation, you must file Articles of Incorporation with the DOS. You should also prepare and adopt bylaws for your corporation. A corporation's bylaws, like an LLC's operating agreement, set out your corporation's internal operating rules. You don't need to file your bylaws with the state.
• Professional corporation: Licensed professionals of qualified services can form a professional corporation in New Hampshire by filing Articles of Incorporation for a Professional Corporation with the DOS.

To form some of these businesses, you need to appoint a registered agent in New Hampshire for service of process. A registered agent agrees to accept legal papers on the company's behalf.

After you form your corporation or other applicable business with the DOS, you can file IRS Form 2553, Election by a Small Business Corporation, with the IRS to elect S corporation tax status.

5. Apply for New Hampshire Licenses and Permits

You'll probably need to apply for at least one license, permit, or registration for your business.

Tax registration. New Hampshire doesn't have a state sales tax or a personal income tax on wages so you don't need to register for those types of taxes. Depending on your business activities, you could need to register for a tax operator's license with the New Hampshire Department of Revenue Administration (DRA).

Employer identification number (EIN). If your business has employees or is taxed separately from you, you must obtain an EIN from the IRS. Even if you're not required to get an EIN, there are often business reasons for doing so. For instance, banks often require an EIN to open an account in the business's name and other companies you do business with could require an EIN to process payments. You can get an EIN by completing an online application on the IRS website. There's no filing fee.

Regulatory licenses and permits. You might need to apply for permits or licenses related to health and safety, the environment, building and construction, and specific industries or services. Different departments and agencies oversee various regulatory licensing. For regulatory licenses and permits issued by the state, check the New Hampshire Business Information section of New Hampshire's official government website. For information about local licenses and permits, check the websites for any cities or counties where you'll do business.

Professional and occupational licenses. You can get information about the state agencies that license and regulate many professions and occupations on the Licensed, Certified and Registered Occupations Index on the New Hampshire Employment Security (NHES) website. The index links to a downloadable pdf overview of that profession's license, including:

• the relevant laws
• contact information for the regulatory agency
• licensure requirements
• examination information
• continuing education requirements
• training
• reciprocity, and
• fees.

You should go to the particular agency's website for more information.

6. Pick a Business Location and Check Zoning Regulations

After taking care of your business's legal requirements, you need to pick a business location. Consider the following factors when you're shopping for the best spot for your business:

• Price and affordability. Pick a place you can afford now, in your company's early months, and in the future. Be conservative when considering price and account for potential economic downturns. Refer back to your business plan. If you're buying a place, you'll need to pay for a mortgage, utilities, and property taxes. If leasing a commercial space, you should budget for rent, a security deposit, utilities, and other potential shared or individual costs. If you lease, negotiate terms that'll work for your business in the long term.
• Location, size, and layout. The location, size, and layout you need will depend on your business activities. For example, if your business depends on shipping out bulk inventory, you'll likely need a significant amount of storage space. As another example, if you run a restaurant, you'll likely need to divide up your space to allow for dedicated space for the kitchen, cold storage, bathrooms, and customer seating. Your location needs will usually depend on your customer base and whether your business depends on visibility (for example, customers passing by your boutique downtown or seeing an exit sign for your business on the interstate). If you can get by with an internet presence, then your location can usually be flexible.
• Zoning. Verify your desired location is properly zoned for your intended business activities. Cities and towns are divided up into different land uses and zoning districts that can include, for example, residential, mixed residential, commercial, industrial, and agricultural. An area's zoning determines what you can do in that area. You can usually find zoning regulations for your town or city by reviewing your local ordinances and contacting your town's zoning or planning department.

Do you need a physical location for your business? Typically, your business will need a mailing or office address. Many times, an address is legally required. Your address can be your home address, a P.O. box, or a coworking space, among other options. See our article on whether you need a physical address for your small business to learn more.

Can you run your business out of your home? Depending on what kind of business you have and the residential zoning laws, you could be able to run your business out of your home. For example, if you provide graphic design services through your website, you can likely run your business from your home. Home-based businesses are becoming more popular, especially for online businesses. Be sure to review your lease (if you rent) and homeowners association rules (if applicable), either of which might ban some or all home businesses.

7. Register and Report Business Taxes

You must file your returns and pay taxes to the DRA. You can file and pay online via the DRA's Granite Tax Connect.

You can read our article on New Hampshire state business income tax for more information on the state's business taxes.

Business Enterprise Tax (BET) and Business Profits Tax (BPT)

New Hampshire has a Business Enterprise Tax (BET) and Business Profits Tax (BPT). The BET and BPT can apply to any New Hampshire business that meets a particular annual threshold. For the BET, the threshold is $281,000 (as of 2024) in gross receipts or enterprise value tax. For the BPT, the threshold is $103,000 (as of 2024) in gross business income. Both the BET and BPT threshold figures are adjusted every other year.

File a Business Enterprise Tax Return to pay the BET. Partnerships and entities federally taxed as partnerships (like many LLCs) will file Form NH-1065, Partnership Business Profits Tax Return to pay the BPT. Corporations and entities federally taxed as corporations (like LLCs that have made the federal corporate tax election) file Form NH-1120, Corporate Business Profits Tax Return to pay the BPT.

See the Forms and Instructions - Business Tax section of the DRA website for downloadable forms.

Business Taxes by Entity Type

As mentioned earlier, New Hampshire doesn't impose a state income tax.

Sole proprietorships. Apart from the BET and BPT, sole proprietorships pay only federal taxes on business income.

Partnerships. Apart from the BET and BPT, partnerships pay only federal taxes on business income.

LLCs. Apart from the BET and BPT, LLC members pay only federal taxes on business income. In addition, the LLC itself must file an annual report with the DOS. For more, read our article on LLC annual report and tax filing requirements in New Hampshire.

Corporations. Taxation of corporations and their shareholders in New Hampshire can be complicated. Corporation dividends could be figured into certain kinds of state taxation. In addition, corporations must file an annual report with the DOS.

Apart from New Hampshire taxes, there are always federal income and employer taxes. Check IRS Publications 334, Tax Guide for Small Business, and 583, Taxpayers Starting a Business.

8. Obtain Insurance for Your New Hampshire Business

Regardless of your industry or type of business, you should look into getting insurance coverage for your business. Business insurance can protect your business and your personal assets from unexpected events, such as personal injury lawsuits and natural catastrophes.

An insurance agent can help you explore the different coverage options for your business. You should consider getting general liability insurance to protect your business against claims related to bodily injury or property damage. Your business might also benefit from cyber liability insurance to cover litigation and settlement fees following a data security breach.

For further guidance, see our article on what types of insurance your small business needs.

9. Open a Business Bank Account

No matter the type of business you form, you should consider opening a separate business account to make it easier to track your income and expenses. For some business types, including LLCs and corporations, a separate bank account is necessary to maintain your liability protection.

Additional Help With Starting Your New Hampshire Business

New Hampshire has many resources for new business owners. When starting a business, you can visit the New Hampshire Business Information webpage on the New Hampshire government website. The webpage has links to resources such as:

• employer resources
• laws and rules
• licenses and permits
• economic development
• business taxes
• corporate forms, and
• the Uniform Commercial Code.

The DRA's FAQ - Registering Business in NH webpage is also a great resource. The webpage links to various relevant topics for new businesses, including registering with the DOS, obtaining licenses and permits, and applying for an EIN.