Registering a company is a big step, and believe it or not, it doesn’t have to be complicated.
This guide provides a clear roadmap for navigating the New Hampshire business registration process. We’ll cover everything from selecting your ideal business structure to securing necessary permits. By breaking down complex procedures into simple, actionable steps, you’ll be able to concentrate on bringing your business idea to life.
Related: Starting A Business In New Hampshire Checklist
Step 1: Choose a Business Structure
The first step to registering a business in New Hampshire is selecting a business structure (also called a business entity), which is how a business is legally organized to operate. Choosing the right type of structure for your business is important as it will determine how it is taxed and the legal liabilities of its owners.
In New Hampshire, there are four common types of business entities: sole proprietorship, general partnership, corporation, and Limited Liability Company (LLC).
Related: Comparison of Business Structures
A sole proprietorship is a business owned by one person. This type of structure has the simplest setup and requires minimal paperwork (if any) to get started. The owner has complete control over the business but also carries all of the financial risks and liabilities. Pros include ease of formation and complete control over the business. Cons involve unlimited personal liability and potentially more difficulty in raising capital.
Related: How to Start a Sole Proprietorship in New Hampshire
In a general partnership, two or more people share ownership in a business. Like a sole proprietorship, the partners are personally responsible for the business’s debts and liabilities. Pros include shared responsibility, pooled resources, and simplicity in formation. Cons consist of unlimited personal liability, potential disputes among partners, and challenges in raising capital.
A corporation is a legal entity that is separate from its owners (referred to as shareholders). It can make a profit, be taxed, and be held legally responsible for its actions. It offers limited liability protection, meaning shareholders are not personally responsible for the business’s debts and liabilities. Pros include limited liability, easier access to capital, and potential tax advantages over the sole proprietorship or partnership. Cons involve complex formation, potential double taxation (profits taxed at the corporate level and again at the shareholder level), and extensive administrative requirements.
Related: How to Form a New Hampshire Corporation
The Limited Liability Company (LLC) combines elements of sole proprietorships, partnerships, and corporations for its owners (referred to as members). Its pros include limited liability, easier administration compared to a corporation, and tax flexibility. Its cons consist of more complexity in formation compared to sole proprietorships and general partnerships, plus state filing and renewal fees.
Related: How to Form a New Hampshire LLC
Step 2: Select a Business Name
After choosing your business structure, the next step could be selecting and registering your business name.
For sole proprietors and general partnerships, if you plan to operate under a name different from your personal name(s), you’ll need to register a New Hampshire Trade Name, also known as a “doing business as” (DBA) name. For example, if John Smith wanted to open a maple syrup business as a sole proprietorship, he might choose to operate under the trade name “Granite State Maple.” He would then need to register this trade name with the New Hampshire Secretary of State’s office.
Corporations and Limited Liability Companies (LLCs) select their official business names during the formation process. These names must be unique within New Hampshire. If a corporation or LLC wants to operate under an additional name that’s different from their official registered name, they would also need to file for a trade name.
All Trade Names must be unique. Before finalizing the name, check if it is available by doing a New Hampshire business name search with the New Hampshire Secretary of State.
Step 3: Federal Employer Identification Number
After selecting your business name, many New Hampshire businesses need to obtain a Federal Employer Identification Number (EIN). This unique nine-digit number, issued by the Internal Revenue Service (IRS), serves as a federal tax ID for your business.
You’ll need an EIN if:
- Your business has employees
- You’ve formed a corporation, partnership, or multi-member LLC
While sole proprietorships and single-member LLCs without employees can use the owner’s Social Security number for tax purposes, they may still choose to obtain an EIN for added privacy.
Obtaining an EIN is a straightforward process that doesn’t cost anything. The quickest method is to apply online through the IRS website, which typically takes just a few minutes. For those who prefer alternative methods, applications can also be submitted by mail or fax.
Step 4: Professional Licensing
Some occupations in New Hampshire require professional licensing before offering their services. Some professions that require licensing include:
- Accountants
- Barbers
- Body artists
- Hunting & fishing guides
- Manicurists
For specific details on which professions need licensing, requirements, fees, and information, contact the New Hampshire Office of Professional Licensure and Certification (OPLC) website or contact the relevant licensing board directly.
Step 5: State Tax Registration
Registering with the New Hampshire Department of Revenue Administration (NHDRA) is an important step for many businesses to set up tax accounts for the specific taxes they need to collect, report, and pay.
You’ll need to register with the NHDRA if your business:
- Has employees (for Withholding Tax)
- Sells goods or certain services (for Meals and Rentals Tax)
- Is a corporation or partnership (for Business Profits Tax and Business Enterprise Tax)
Registration can be completed online through the NHDRA’s Granite Tax Connect portal.
Step 6: Local Business Licenses
While New Hampshire doesn’t have a statewide business license, many local municipalities require businesses to register. Here are five examples of common local licenses:
- Food Service Licenses: Restaurants, cafes, and food trucks often need licenses from local health departments. For example, the City of Manchester requires food service establishments to obtain a license from its Health Department.
- Liquor Licenses: Businesses selling alcoholic beverages typically require licenses from local liquor commissions. In Nashua, the City Clerk’s office handles liquor licensing applications.
- Home-Based Business Licenses: Some cities require permits for operating businesses from residential properties. The Town of Derry, for instance, requires home-based businesses to obtain a Home Occupation Permit from the Code Enforcement office.
- Contractor Licenses: Many municipalities require licenses for contractors working within their jurisdiction. In Portsmouth, general contractors must register with the Inspection Department before performing work in the city.
- Entertainment Licenses: Venues hosting live music, dancing, or other forms of entertainment often need special permits. Concord requires an Entertainment License from the City Clerk’s office for live entertainment businesses.
Be sure to check with your specific city or town hall, as licensing requirements and issuing departments can differ between municipalities.
Step 7: Local Building & Zoning Permits
Before registering your business and committing to a property purchase or lease, it’s important to understand New Hampshire’s building and zoning requirements. These regulations help ensure that your business location complies with local laws and safety standards.
Zoning regulations determine how properties in specific areas can be used and where certain types of businesses can operate. Before setting up your business, check with your local planning or zoning department to confirm that your intended use aligns with the property’s zoning designation.
Building permits are typically required for new construction, renovations, or changes in a building’s use. These permits ensure any modifications or new structures meet safety codes and standards. Many municipalities in New Hampshire require a certificate of occupancy before a business can begin operations in a building.
For home-based businesses, some towns and cities have specific ordinances. These may limit factors such as the number of employees, signage, or customer traffic. Check with your local planning department for any home occupation permit requirements.
Sign permits are often necessary if you plan to install exterior signage for your business. These permits help maintain the aesthetic character of the area and ensure sign safety.
Consult with your local planning or zoning department early in your business planning process to understand your area’s specific information and requirements.
For only $99, you can save a lot of time and know your business complies with local, state, and federal requirements.