New Hampshire Incorporation Frequently Asked Questions
Do I need to reserve a corporate name?
No, but it is recommended to reserve a name prior to filing to ensure that it remains available during the incorporation process.
How do I reserve a corporate name?
The reservation of your corporate name will be handled by IncParadise and is included in the price of our service.
Do I have to renew my name registration?
No.
How do I incorporate in New Hampshire?
When using our service, IncParadise will file, on your behalf, the required administrative forms and articles of incorporation with the appropriate New Hampshire agency.
Is a registered agent required?
Yes. The registered agent must maintain a business office that is identical to the registered office and must be either: (1) an individual residing in New Hampshire, or (2) a corporation with authority to transact business in this state. As part of our ongoing service, IncParadise does provide a registered agent service option that you can select during the online registration process.
How many Incorporators are required to form a corporation in New Hampshire?
One or more are required.
How many Directors are required to start a corporation in New Hampshire?
One or more as specified either in the bylaws or the articles of incorporation.
Are corporations in New Hampshire required to file an Annual Report?
Yes. An annual report must be filed between January 1 and April 1 beginning the year following the calendar year of incorporation.
New Hampshire’s state/local tax burden percentage ranks it 2nd lowest in the nation behind Alaska. (The Tax Foundation, 2005)
New Hampshire ranked 5th in the State Business Tax Climate Index. (The Tax Foundation, 2005)
New Hampshire ranked 12th for average high-tech wages. (Cyberstates 2005: A State-by-State Overview of the High-Technology Industry)
Cost of Living Index
For Manchester, NH (2005):
Index Score
Composite:
106.8
Crime Rate
New Hampshire has the 3rd lowest overall crime ranking in the U.S. (FBI, 2004)
Fees & Taxes
Business Inventory Tax Business inventory is exempt.
Corporate Income Tax New Hampshire’s corporate tax structure consists of a simple flat tax of 8.5% on all corporate income.
Personal Income Tax New Hampshire has a flat tax rate of 5.0%. With no separate tax brackets, New Hampshire income tax only applies to dividend and interest income (not ordinary income). As a result many individuals have little or no income tax liability.
Personal Property Tax Taxable. As one of only two states that tax neither sales nor wages, New Hampshire is heavily dependent on property tax revenue. However, several states collect more than New Hampshire in property taxes.
State Sales and Use Tax Base Rate: None
Machinery Rate: None
Unemployment Insurance New Hampshire’s new employers’ rate is 2.7% for 1 year.
Some of the top businesses that set up companies in New Hampshire include C&S Wholesale Grocers, Standex International, Albany International, Anvil International, Timberland, CatholicMedNH, and Concord Hospital among others. One of the fastest growing sectors in New Hampshire is the service industry and incidentally, it is one of the largest as well. There are 4 major sectors within the service industry that has grown in leaps and bounds and these include Health care services, Business services, Engineering and management services, and Educational services.
Why Choose New Hampshire for Incorporation?
Why has there been a rise in incorporation in New Hampshire especially of small and medium sized enterprises? This is more so because the state provides a stable and growing economy. The economy of the state has had a major shift from the traditional manufacturing of textiles to diversification into wholesale and retail trade, tourism, and technology.
Now let’s take a look at some of the salient benefits that are responsible for fuelling growth of small businesses:
Coos County Job Creation Tax Credit: This is a program that was enacted through the 2008 session of the New Hampshire Legislature (House Bill 1644). You have to apply to the Department of Revenue Administration, NH to benefit from the tax credit. If you set up a company in New Hampshire, you can benefit from this credit against taxes due on account of taxable periods ending on and after June 9, 2008. This credit is applied against the Business Enterprise Tax initially as well as the Business Profits Tax. Any unused portions of this tax credit can be carried forward for a period of 5 years. Application Form
Direct Financial Incentives: There are several direct financial incentives that you can benefit from post company incorporation in New Hampshire. These financial incentives are being made available by the New Hampshire Business Finance Authority (BFA) and the most popular financial incentives for business include:
– Concord Regional Development Corporation (CRDC)
– The New Hampshire Community Loan Fund
– Economic Revitalization Zone Program
– Job Grants Program
– Procurement Technical Assistance Program (PTAP)
How do you incorporate in New Hampshire?
What is the process of incorporation in New Hampshire? What type of documentation is required? These are some of the common questions that you will be confronted with if you planning to start a new business in the state. The following steps will enable you understand the entire process:
Business Type
The first step towards incorporation in New Hampshire is choosing the type of business you want to form. You can choose to form an LLC or a Corporation. The type of business entity you want to form can be a domestic or a foreign entity. The forms and fee will be different for each type of entity.
Business Entity Name
One of the most important steps towards incorporation in New Hampshire is naming your business entity. You have to start by identifying, searching, reserving, or registering the business entity name. There are 3 steps towards business name formation and they are:
Naming Requirements: A corporation under RSA 293-A:4.01-02 and an LLC under RSA 304-C:32 or RSA 304-C:177 should contain words like “corporation”, “incorporated”, “limited liability company” or abbreviations like “corp.”, “inc.”, “ltd.”, “L.L.C.” or similar abbreviation.
Business name search: You need to search for a business name that is not in use currently. You can conduct name search here.
Name Reservation: Once you have identified business entity name, and if the name is available then you can reserve the name by submitting Form_1_(09-2015) for Reservation of the Business Entity Name. The form for reservation of name has to be submitted with the Office of the Secretary of State and it will be effective for a period of 120 days.
Choose a Registered Agent
Whether you form a corporation or an LLC business entity, in order to transact business in the state of New Hampshire, you will have to maintain a registered agent pursuant to NH Rev Stat § 304-C:36 (2013) for LLC and NH Rev Stat § 293-A:5.01 (2014) for Business Corporations.
We are one of the respected registered agents in New Hampshire and will be responsible for initiating incorporation in New Hampshire through processing of your “Certificate of Formation”, and “Articles of Incorporation” for domestic entities and “Application for Registration” or “Certificate of Authority” for foreign business entities.
Articles of Incorporation and Certificate of Authority
You will be required to submit “Articles of Incorporation” if your business is a domestic corporation and a “Certificate of Authority” if it is a foreign business entity. In order to streamline the process of incorporation in New Hampshire, we can file documents on your behalf through the online process or through an expedited process.
Date Stamped Copies
As a part of the process of company incorporation in New Hampshire, we will ensure, you receive date-stamped and filed copies that verifies the state has filed as well as formed your corporation.
Costs and Fees associated with New Hampshire Incorporation
What would it cost to set up company in New Hampshire? Check Fees here!
New Hampshire LLC and Corporation Registration and Formation
The Granite State of New Hampshire not only provide small businesses to be a part of the growing economy but also provides benefits that can provide them with the much needed tax relief or funding. The dynamic, educated, and motivated workforce along with a high quality of life and excellent infrastructure paves the way to form a New Hampshire business that will definitely experience good growth and stability. If you are planning to establish a small business but are in need of financial support then there are several programs in place that will provide you with a grant of $1,000 as funding for labor intensive projects.
We are one of the top New Hampshire registered agents and can assist you with the successful registration of your business entity in the state.
Let’s take a look at how you can form a New Hampshire business LLC or Corporation.
New Hampshire LLC Registration and Formation
LLC company formation in New Hampshire is governed by 2013 New Hampshire Revised Statutes, Title XXVIII – Partnerships, Chapter 304-C – Limited Liability Companies. The procedure for registration and formation of LLC is as follows:
Step#1: Maintain a registered agent
If you are planning to form a Limited Liability Company in New Hampshire then you will be required to continuously maintain a registered agent in the state pursuant to NH Rev Stat § 304-C:36 (2013). This law is applicable to domestic limited liability companies as well as foreign limited liability companies.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in New Hampshire. We can assist you to form a New Hampshire business LLC.
Step#2: LLC Name Reservation
One of the foremost steps towards company formation in New Hampshire is identifying a name for your business entity. The process is as follows:
Identify a unique name for your business entity
According to RSA 304-C:32 or RSA 304-C:177, the name should contain the phrase or words “limited liability company” or the abbreviations “L.L.C.”, or “LLC”.
The chosen name should be distinguishable and should not be deceptively similar to the name of any limited partnership, corporation, or limited liability company
Apply for reservation of name pursuant to the provisions of NH Rev Stat § 304-C:27 (2013)
Submit the form through mail or online with the Office of the Secretary of State of New Hampshire along with the applicable fee. An LLC can reserve its name for a period of 120 days.
Step#3: Certificate of Formation and Application for Registration
If you are planning to form a New Hampshire business LLC then the most important step is to prepare and file the proper documents for a Limited Liability Company. The steps are:
If you want to register a domestic LLC then you will be required to file “Certificate of Formation” governed by NH Rev Stat § 304-C: 7 (2013).
If your business entity is a foreign LLC then you will be required to file “Application for Registration” pursuant to NH Rev Stat § 304-C:175 (2013).
The Certificate of Formation and Application for Registration of domestic and foreign LLCs can be filed with the Office of the Secretary of State of New Hampshire, in person or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the LLC registration.
In case, you have any questions regarding how to form a New Hampshire business, feel free to call us on 702-871-8678.
New Hampshire Corporation Registration and Formation
If you are planning to form a Corporation in New Hampshire then the procedure for registration and formation is as follows:
Step#1: Maintain a Registered Agent
If you are planning to form a business or professional corporation in New Hampshire then you will be required to continuously maintain a registered agent in the state pursuant to NH Rev Stat § 293-A:5.01 (2014). This law is applicable to domestic as well as foreign corporations.
We would take this opportunity to share with you the fact that we are one of the top registered agents in the state and have been responsible for over 11,494 businesses set up in New Hampshire. We can assist you to form a New Hampshire business as we are in compliance with all regulations in the State of New Hampshire.
Step#2: Corporate Name Reservation
In order to form a corporation in New Hampshire, one of the key steps is identifying a name for your business entity. What is the process? The process is as follows:
Identify a name for your business entity
According to RSA 293-A:4.01-02, a corporate name should contain the phrase or words “corporation”, “company”, “incorporated”, or the abbreviations “Corp.”, or “Inc.”
The chosen name should be distinguishable and should not be deceptively similar to the name of any limited liability company, limited partnership, or any other corporation
Apply for reservation of name pursuant to NH Rev Stat § 293-A:4.02 (2014).
A foreign corporation would be required to register their name pursuant to NH Rev Stat § 293-A:4.03 (2014)
Submit the form through mail or online with the Secretary of State of New Hampshire along with the applicable fee. A business corporation can reserve its name for a period of 120 days.
Step#3: Articles of Incorporation and Certificate of Authority
If you are planning to form a corporation in New Hampshire, then the most important step is to prepare and file the proper documents for a business corporation. The steps are:
If you want to register a domestic corporation then you will be required to file “Articles of Incorporation” pursuant to NH Rev Stat § 293-A:2.02 (2014).
If your business entity is a foreign corporation then you will be required to file a ” Certificate of Authority” to transact business in the state pursuant to NH Rev Stat § 293-A:15.01 (2014).
The application or documentation for registration of a corporation can be filed with the Office of the Secretary of State of New Hampshire, in person or online.
We can file the form on your behalf as your registered agent in the state and provide you with certified copies of the incorporation.
If you have any questions regarding New Hampshire incorporation or LLC formation, you can simply visit the New Hampshire Business formation page.
Advantages of Incorporating a Business in New Hampshire
There was a time when one of the major industries in New Hampshire was shipbuilding and then in the late 19th century, cotton and woollen mills became one of the drivers of the economy. On the other hand the shipping industry grew by 79% from 1992 and thus the state became home to Tyco International, a Fortune 500 company. Today, a start-up company in New Hampshire can be established in several different industries including durable goods manufacturing, services, retail trade, and wholesale trade. Agriculture is also quite a large industry, wherein dairy farming and dairy products contribute to almost 31% of the state’s total agricultural receipts.
Business Growth Incentive for New Businesses
The big question is why should you register a new company in New Hampshire? Yes, the economy and the infrastructure are key factors but what about benefits? The good news is that there are a lot of advantages and benefits that your business can derive. Let’s look at some of the basic advantages that an LLC or business corporation can leverage:
Advantage#1: The benefits of Incorporation or LLC formation
Corporation
Tax Credits: There are several programs implemented by state government agencies and are aimed at helping businesses save through tax credits. Some of the top programs include:
– New Market Tax Credits: If you register a new business in New Hampshire as a Corporation, your business entity can be eligible for the “New Market Tax Credits” program. The program has been initiated by the Capital Regional Development Council (CRDC) and is partnered with Coastal Enterprises.
– The New Hampshire Research and Development Tax Credit: Your business can benefit from this tax credit if it is involved in research and development. Tax credits are applicable to research and development costs and can be carried forward for up to 5 years.
Federal taxation: If you register a new company in New Hampshire as an S corporation then the corporation or firm will not pay any income tax. Instead, each shareholder or owners in the company will be liable to pay tax on their personal tax returns.
Independent life: When you register a new business in New Hampshire as an S Corporation, it will enjoy an independent life. This means that the incapacitation or death of a stockholder will not have a negative impact on the business operations.
LLC
Flexible Profit Distribution: A start-up company in New Hampshire LLC has the benefit of being able to select different ways of distribution of profits unlike a partnership where the distribution is 50-50.
Brownfields Revolving Loan Fund (RLF): If you register a new company in New Hampshire as an LLC, you can participate in this program. Every start-up company requires some amount of financial aid to help push their goals forward and this program can just be the right one for you. The “Brownfields Loans” as it is known is being funded by the US Environmental Protection Agency and managed by CRDC. You can benefit from a maximum loan amount of $600,000.
Limited Liability: As an owner of a New Hampshire LLC, you will be able to enjoy limited liability protection quite similar to what a corporation enjoys.
Advantage#2: New Hampshire Business Incentives
Once you register a new company in New Hampshire, there are several business incentives and programs that your company can benefit from. Let’s take a look at some of the most popular programs:
New Hampshire Opportunity Zones: There are 27 low-income census tracts that have been nominated as opportunity zones in the state. The biggest benefit of registering your start-up company in New Hampshire in such a zone is tax credits. You can benefit from tax credits or tax incentives for making investments in these areas. Check MAP.
Regenerative Manufacturing Tax Exemption: If your business qualifies for this program because it is involved in regenerative manufacturing then it will be exempted from the Business Enterprise Tax (BET) and the Business Profits Tax (BPT) for a period of 10 years.
Capital Regional Development Council Funds: A start-up company in New Hampshire can benefit from a variety of business loans managed by CRDC, if they qualify. These loans are targeted at new and growing New Hampshire businesses. The maximum loan amount is $200,000. Some of the other loan programs managed by CRDC include the Bradford Loan Fund and the Sullivan County Loan Fund.
Are there any Disadvantages of Incorporating in New Hampshire?
The state of New Hampshire provides small and medium sized businesses with good transportation infrastructure, skilled workforce, several types of grants and loans, tax incentives, and Economic Revitalization Zone tax credit programs among others. What disadvantages could possibly be there for a start-up company in New Hampshire? In reality there are none except those that come with the type of business you register. For instance, processing of incorporation can be time consuming and require more paperwork. Also an LLC has the disadvantage of having a limited life. These are small disadvantages as compared to the many benefits that the state offers.
Once you have registered your business entity in New Hampshire, the next step is to check if your business requires a license or a permit. A business license is required in most of the states for a variety of businesses but then on the other hand, not all businesses require a license to operate.
Businesses and individuals in New Hampshire require professional and occupational licenses or permits and some of the key state business permits and licenses include:
Food services licensing
Environmental permits
Liquor Licensing
Meals and rental tax license
Child care or day care licensing
Hotels and lodging establishments
How to Get a Business License in New Hampshire
Where and how do you apply for a company license in New Hampshire? Are permits required for your business entity? Does the business entity require a single license or multiple permits or licenses? Who is the issuing authority for these licenses or permits? The only way to answer these questions is by understanding the process of business licensing.
Here is a step-by-step approach towards acquiring a business license in the state of New Hampshire:
Step#1: The Industry or Business Type
How would you know what type of business or professional license is required to operate in New Hampshire? The type of industry or the activities of a business entity helps in identifying the type of business license required.
Let’s take a look at some examples to understand this better:
Retail Food Establishments – This includes Restaurant, Food Store, Food Service, Mobile Food Units, and Bed and Breakfasts. A business license in New Hampshire is issued by the Division of Public Health Services, Department of Health and Human Services (DHHS). So, if you are planning to establish your business in the food establishment industry then you will require a license to be issued by the DHHS.
Child Care – This includes Family Child Care Homes, Group Child Care Centers, Family Group Child Care Homes, Child Care Nurseries, Night Care Programs, School Age Programs, and Residential Child Care Programs. A New Hampshire company license is issued by the Child Care Licensing Unit (CCLU).
Liquor or Tobacco Retail – Some of the types of businesses under this category or industry that are issued a business license in New Hampshire include Liquor Store, Cigar Bar, Liquor and Wine Manufacturer, Wholesale Distributor, Restaurant Cocktail Lounge, and State Fairs among others. The documents required for the license varies according to the:
– Type of business, for example LLC, corporation or Limited Liability Partnership etc.
– Type of event or service like cocktail lounge or Social Club etc
The license is issued by the New Hampshire Liquor Commission, Division of Enforcement.
Step#2: Licenses issued by City/County
If your business or industry type doesn’t fall under a statewide license then you will have to check with the local city or county office. A New Hampshire company license can also be issued by local counties or cities in which the business is located. Let’s look at an example to understand how this works.
If you are planning to transact your business in the City of Manchester, NH then you will require a business license for specific types of services or activities. Some of the services licensed here include farmer’s markets, pawnbrokers, motels, retail stores for merchandise or equipment, taxicab companies, carnivals, entertainment, etc. The fee for obtaining the license will vary according to the activity your business specializes in. You would be required to apply with the Business Licensing & Enforcement Division, Office of the City Clerk. Sample Business License Application
It is important to understand that each city will have different license requirements, fees, and application procedures.
Step#3: Issuance of a Business License
How is a business license in New Hampshire issued? You have to identify the following to complete the process:
The type of business or industry
Do you need a license or a permit?
Will it be issued by the state or the city?
Once you have identified the above, all you need to do is either download the application online or contact the concerned state department or city of clerk office.
It is important to note that a business license or permit will have to be renewed annually unless specific dates have been mentioned, to keep the business operational.
702-871-8678
