Getting ready to start a new business in New Hampshire? New or soo
n-to-be business owners need to understand what steps are required before opening a new business in New Hampshire.
Potential employers should also understand what resources and services can make life easier for a business owner, especially those just starting out with limited resources and manpower.
Here is everything you need to know about starting a business in New Hampshire.
Starting a business in New Hampshire consists of several steps and requirements, including:
It is also a good idea to see what potential small business tax credits may be available to your business, as such credits can help you grow faster.
Choosing a name for your new business may seem extremely straightforward. However, in reality, it is a complicated process. Getting yourself into the creative mindset to brainstorm a unique, catchy, and memorable business name is tough enough on its own. Once you have a name in mind, however, what you do next depends on the business entity you choose.
There are four types of business entities in New Hampshire:
A sole proprietorship is a business entity in which one person (the business owner) operates the business. There is no distinction between the business and the business owner.
Luckily, those looking to set up a sole proprietorship in New Hampshire don't need to file any organizational documents with the state. However, in order to choose a name the business owner must file a Trade Name Registration with the New Hampshire Secretary of State (SOS) if they use a business name that is different from the name of the business owner.
A partnership is a business entity where two or more people own the business together and share responsibilities, risks, and benefits. It is similar to a sole proprietorship but with more people involved.
Unless forming a limited liability partnership, you don't need to file any organizational documents with the state. To form a limited liability partnership, you must file a registration with the New Hampshire SOS. It is also recommended, though not required, that you develop a written partnership agreement to avoid and dissolve disputes.
In order to choose a name, partnerships must also file a Trade Name Registration with the New Hampshire SOS if they use a business name that is different from the names of the individual partners.
An LLC (Limited Liability Company) is a business entity and the United States-specific form of a private limited company. LLCs can combine the pass-through taxation of a partnership or sole proprietorship, with the limited liability of a corporation.
To create an LLC in New Hampshire, you need to file a certificate of formation with the New Hampshire SOS. A registered agent in New Hampshire must also be appointed for service of process. It is also recommended, though not required, that you develop an operating agreement to establish the basic rules about how your LLC will operate.
In order to choose a name, you will need to choose a name that is distinguishable from the names of other business entities already on file with the New Hampshire (SOS). You can search for available business names by using the SOS's business entity search tool. Names can be reserved for up to 120 days by filing an Application for Reservation of Name with the SOS.
LLCs must also include "L.L.C." in the name of their business.
A corporation is an organization authorized by the state to act as a single entity and recognized as such in law for certain purposes.
To create a corporation in New Hampshire, you must file articles of incorporation with the New Hampshire SOS. A registered agent in New Hampshire must also be appointed for service of process. It is also recommended, though not required, that you develop and prepare bylaws to establish your corporation's internal operating rules. S Corporations must also file IRS Form 2553.
In order to choose a name, you will need to choose a name that is distinguishable from the names of other business entities already on file with the New Hampshire (SOS). You can search for available business names by using the SOS's business entity search tool. Names can be reserved for up to 120 days by filing an Application for Reservation of Name with the SOS.
Corporations must also include "Corporation" in the name of their business.
In order to operate a business in New Hampshire, you must register said business with the Secretary of State's Office. Certain business entities have additional registration requirements, detailed above.
In addition to the above requirements for each business entity type, you may need to apply for a tax operator's license (see below).
First and foremost, all businesses with employees, as well as businesses that are taxed separately from you, must obtain a federal Employer Identification Number (EIN) from the IRS. It is recommended, however, that all businesses obtain an EIN as banks often require an EIN to open an account in the business's name and other companies you do business with may require an EIN to process payments.
Other required permits or licenses can depend on a variety of things, such as the nature of the business. Employers can find all information on required licenses and permits on the New Hampshire Business Information page.
For New Hampshire restaurants, grocery stores, bakeries, hotels, lodging establishments, and motor vehicle rental establishments, a Meals and Rooms (Rentals) License must be obtained to collect and remit taxes on meals, rooms, and motor vehicle rental services.
For New Hampshire establishments intending to sell tobacco products, a Tobacco Tax Operator's License must be obtained.
Communications service retailers must obtain a Communications Services Retailer's Tax License in order to collect and remit Communications Services Taxes.
Food Service Health Licenses may be obtained from the New Hampshire Department of Health & Human Services. You may contact them directly at (603) 271-4583 for more information.
New businesses should contact their local city or town clerk's office for any local / municipal permits and licenses. Those who operate a business, or engage in a trade or an occupation that is subject to state or local regulation, may be required to apply for a specific operator's permit and license. Regulated businesses may be subjected to certification, registration, or accreditation.
Depending on the nature of your business and the employees you need to hire, you may also need professional and occupational licenses for said workers. You can get information about the state agencies that license and regulate many professions and occupations by going to the Licensed, Certified and Registered Occupations Index.
All businesses with employees in the State of New Hampshire must file an Employer Status Report with the NH Department of Employment Security within 30 days of first providing employment. This is used to register for state unemployment insurance tax purposes.
Businesses must also register for new hire reporting in New Hampshire with the Department of Employment Security.
Lastly, businesses must file, quarterly, a Wage and Tax Report regardless of tax liability.
New Hampshire businesses are required to offer workers' compensation insurance coverage for employees in case of accidental injury or death. Employers must apply for and obtain coverage before hiring any employees.
New business owners who are looking for workers' compensation insurance should reach out to a New Hampshire Payroll Company for help finding coverage.
In order to begin processing payroll in New Hampshire, businesses should make sure that they have the proper processes in place to accurately process payroll, maintain compliance with things such as New Hampshire Minimum Wage, as well as handle any HR issues that come up.
However, as a new business owner, you likely either don't have the time to handle these things manually, and likely don't have the manpower, or money to hire the manpower, to take care of those things internally. That's where a New Hampshire Payroll Company can help.
The fact is, small business owners shouldn't process their own payroll. Partnering with a company such as Trivantus for payroll can give you back a lot of your time, one of the many benefits of outsourcing payroll in New Hampshire.
To learn more about the payroll software and payroll tax filing services available from Trivantus, contact us today or take a look at our payroll demo video recording. Trivantus also offers HR software and services.
Now you have everything you need to start your new business in New Hampshire successfully.