Deep in Debt?

We can help you pay it off

$1,000$100,000+

Starting a Business in New Hampshire - 6 Steps to Start

The state of New Hampshire's business-friendly laws, diverse economy, and highly skilled workforce make it an ideal location for entrepreneurs to start small businesses. Are you interested in starting your own business? Make sure to follow these steps:

1. Select Your Business Concept

Finding a good idea before starting a new venture is critical to increasing your chances of success. So, conduct extensive research on the market, your ideal customer, and yourself.

Begin with:

  • Assessing what you excel at and enjoy doing in order to identify a concept that speaks to you.
  • Choose a popular niche with room for expansion.
  • Spend significant time conducting market research and studying small businesses in New Hampshire to identify any flaws you can exploit.

2. Develop a Business Plan

Once you've come up with a profitable business concept, the next step is to make a business plan that outlines your desired business goals, strategies for achieving them and provides a clear roadmap for success.

When creating a plan, include the following components:

  • A concise executive summary: Create an overview highlighting the key aspects and value proposition.
  • SWOT Analysis: Conduct a thorough examination of your company's Strengths, Weaknesses, Opportunities, and Threats.
  • Make a note of your offer: Describe your company's offerings, emphasizing their unique features, benefits, and competitive advantage.
  • Financial Plan: Provide a detailed financial plan demonstrating your company's financial viability and potential profitability. Projections, budgeting, revenue models, business expenses, and funding strategies should all be included in this plan.
  • Marketing Plan: Outline a clear marketing strategy that describes how your company will connect with and engage its target market, taking into consideration the most important marketing channels, messages, and promotional activities.

3. Select a Business Name

Register your company name: Your company name should be distinctive in New Hampshire. Make a list of potential company names, then use the New Hampshire business entity search to see if it is available in the state.

Include the following words: If you choose to structure your business as an LLC, you must include the words "LLC" or "Limited Liability Company" in your company name. When referring to corporations, the terms "Corporation," "Company," "Incorporated," or "Limited" or their abbreviations must be used.

Examine federal trademarks: Search the US Patent and Trademark Office website to ensure the federal government has not already trademarked your company name.

Register a web domain and social media handles: If you intend to conduct a company online, you must first obtain a domain name and social media handles. Choose a social media handle that is similar to your domain or legal business name and reserve an online domain name for it.

4. Establish Your Business Structure

Sole proprietorships, limited liability companies, general partnerships and corporations are the four most common business structures in New Hampshire.

Sole Proprietorship

A sole proprietorship structure is ideal for starting a small local business with little risk, low overhead, and startup costs.

Because a sole proprietorship is an informal structure, there is no lawful difference between you and your company. As a result, if your business incurs debt, creditors may seek to recoup their losses by seizing your personal assets. Your successful business will also be unable to issue stocks or receive funding under this structure.

However, this structure has advantages such as easy setup of sales tax, without the need for registration, and only one tax return because sole proprietorships are pass-through business entities that are only taxed at the owner's personal income level.

How to Create:

  • Select a business name.
  • Register a trade name.
  • Obtain all necessary licenses, permits, and zoning clearance.
  • Get a Federal Employer Identification Number (FEIN).

Partnership

The three sorts of partnerships are general partnerships (GP), limited partnerships (LP), and limited liability partnerships (LLP).

A general practice has more owners than a sole proprietorship. It is a loosely structured, unincorporated company structure that is taxed just like a sole proprietorship. Furthermore, the owners of general partnerships have no liability protection.

An LP is made up of one general partner and at least one limited partner. The general partner operates the business and is personally liable for all debts. Limited partners are only accountable for the amount they invested; they are not involved in day-to-day business operations.

How to Create:

  • Choose a company name.
  • Register the name as a trademark (optional for GPs).
  • Complete the necessary paperwork.
  • Obtain an EIN.

Limited Liability Company (LLC)

Limited Liability Companies (LLCs) are an excellent choice for small business owners. This business structure offers a unique combination of advantages, such as the flexible flow-through taxation of a sole proprietorship or partnership combined with the limited liability protection of a corporation.

By doing it you can effectively protect yourself and your co-workers from any potential personal liability arising from a general business license and from financial obligations or legal disputes your company may face.

The safeguarding feature of Limited Liability Companies (LLCs) is a notable feature that appeals to many business owners, making it a preferred business structure.

How to Create:

  • Choose a name for your LLC.
  • A registered agent should be identified.
  • Send a copy of your Articles of Organization to the New Hampshire SOS.
  • Create an operating agreement.
  • Obtain an EIN.
  • Establish business accounts.

Corporation

The corporate structure creates a strong legal barrier between the company and its shareholders. Although there is a risk of higher costs and increased income tax compliance, incorporating has numerous advantages.

Because a corporation is a separate legal and legal business entity itself, it has the same legal rights and obligations as an individual. It can enter into contracts, own property, pay taxes, and even participate in legal proceedings in lawsuits.

C corporations and S corporations are the two main types of corporations. C corporations are more common, but they are subject to double taxation, which means that their owners must pay taxes on their business profits tax and any dividends they receive.

Despite adhering to strict corporate formalities, C corporations have more flexibility because they have multiple stock classes and unlimited shareholders.

In contrast to C corps, S corps are pass-through entities. So, despite having a maximum of 100 shareholders and only one class of stock, S corporations provide significant tax benefits to their owners.

How to Create

  • Select a name for your company.
  • Appoint directors to oversee the corporation's operations.
  • Hire a New Hampshire registered agent to handle all official and legal correspondence.
  • Submit the New Hampshire Articles of Incorporation to establish your corporation formally.
  • Develop corporate bylaws to define internal governance and operational standards.
  • Draft a shareholder agreement outlining each shareholder's responsibilities and rights.
  • Distribute and issue stock to shareholders.
  • Take all necessary steps to obtain business licenses and permits.

5. Business License and Permits

A statewide business license is not required in New Hampshire. Certain professions and occupations, however, have licensing or certification requirements.

For example, real estate brokers, engineers, and home inspectors must obtain a state license, and alcohol sales require an ABC license. Different agencies regulate and issue these professional business licenses and permits.

Healthcare licenses, for example, are issued by the Department of Health Professions, whereas the Board of Accountancy issues CPA licenses.

6. Open a Business Bank Account

It's critical to keep your personal finances separate from your business finances, especially if you're establishing a formal business legal structure to limit your own personal income tax liability. By not combining personal and business finances, you can protect your assets from potential risks.

Apart from providing personal asset protection, separating your finances has several other advantages, such as effective cash flow management, efficient monitoring of your business income and expenses, and long-term planning for your business.

Updated on:

Was this page helpful?

  • expertise badge
  • This site is verified as a Trusted Site by Best of the Web
  • TrustLink logoTrustLink logo
  • Customer ratings on BBB
  • IAPDA logo
  • Calchamber Member
  • Calbar Registered
  • D&B
  • Godaddy
  • yelp logo