Last updated: May 4, 2026
New Hampshire’s tax environment is the most distinctive in the continental United States. As of January 1, 2025, the state has no individual income tax — the Interest and Dividends Tax was fully repealed, making New Hampshire the 9th state in the country with no tax on personal income — and no general sales tax, one of only five states without one. What New Hampshire does have is the Business Profits Tax (BPT) at 7.5% on net profits above $109,000 and the Business Enterprise Tax (BET) at 0.55% on the enterprise value base above $298,000. These two taxes replace the revenue that income and sales taxes generate in other states. If your cleaning business, food truck, or HVAC company generates less than $109,000 in gross income in its first year, you will pay no state business tax at all — a threshold that most startups never hit in year one.
This guide compiles the specific New Hampshire agency requirements, portal links, fee amounts, and regional variations that apply to starting a business in New Hampshire in 2026. Source agencies include the NH Secretary of State, NH Department of Revenue Administration (DRA), NH Employment Security (NHES), NH Department of Labor, NH Office of Professional Licensure and Certification (OPLC), and NH Department of Health and Human Services (DHHS).
New Hampshire Business Requirements at a Glance
| Requirement | Agency / Portal | Cost | Timeline |
|---|---|---|---|
| LLC Certificate of Formation | NH Secretary of State — QuickStart | $100 (mail) / $102 (online) | 1-3 business days online; standard mail processing |
| LLC Annual Report | NH Secretary of State — QuickStart | $100; $50 late fee after April 1 | Due April 1 each year; risk dissolution if not filed |
| Trade Name / DBA | NH Secretary of State | $50 (5-year term); renewal $50 | File at SOS before using business name |
| Federal EIN | IRS.gov | Free | Immediate online |
| Business Profits Tax (BPT) | NH Dept of Revenue Administration | 7.5% of net profits; threshold: gross income >$109,000 | File if threshold exceeded; calendar-year filers due April 15 |
| Business Enterprise Tax (BET) | NH Dept of Revenue Administration | 0.55% of enterprise value base; threshold: gross receipts >$298,000 | File if threshold exceeded; BET credit applies against BPT |
| Rooms and Meals Tax (food/lodging) | NH Dept of Revenue Administration | 8.5% — free to register; collected from customers | Register before first prepared food sale or room rental |
| Unemployment Insurance (UI) | NH Employment Security (NHES) | New employer: 2.7% on first $14,000/employee/year | Register before first payroll |
| Workers Compensation | Licensed private carrier (competitive market) | Varies by industry; 6.1% rate cut effective 1/1/2026 | Required at first employee; before hiring |
| New Hire Reporting | NHES Web Tax and New Hire System | Free | Within 20 days of hire date |
How to Start a Business in New Hampshire (Step by Step)
Step 1: Choose Your Business Structure
Most New Hampshire small business owners choose between a sole proprietorship, Limited Liability Company (LLC), or corporation. An LLC is by far the most common for service businesses because it separates personal and business liability without requiring the governance formality of a corporation.
LLC in New Hampshire
New Hampshire LLCs are formed through the Secretary of State’s QuickStart online filing system at quickstart.sos.nh.gov. Filing fee: $100 by mail or $102 online (the $2 is a handling fee, not a separate charge). Online filings typically process in 1-3 business days. Every NH LLC must file an Annual Report by April 1 each year; the fee is $100. A $50 late fee applies after April 1, and failure to file within a sufficient period after the deadline leads to administrative dissolution. Annual reports can be filed online through QuickStart.
Registered Agent
Every NH LLC must maintain a registered agent with a physical NH street address. P.O. boxes are not permitted. You may serve as your own registered agent if you have a physical NH address and are available during normal business hours. Commercial registered agent services typically cost $49-$150 per year.
Trade Name / DBA
If your LLC operates under a name different from its legal name — for example, your LLC is “Smith Mechanical LLC” but you advertise as “Granite State HVAC” — register a Trade Name with the NH Secretary of State. Fee: $50 for a 5-year term. Renewal: $50. Cancellation: $10. File at sos.nh.gov/corporations-0/forms-and-fees/trade-names.
Sole Proprietorship
Operating under your own legal name requires no state registration. If you operate under a business name, register a Trade Name with the Secretary of State ($50). You are personally liable for all business obligations. Most service businesses move to LLC structure within the first 12-18 months as revenue and liability exposure grow.
Step 2: Register for NH Business Taxes
New Hampshire’s tax environment is genuinely different from every neighboring state and most of the country. The NH Department of Revenue Administration (DRA) administers all state business taxes at revenue.nh.gov.
No Sales Tax
New Hampshire has no general sales tax — one of only five states nationwide (alongside Alaska, Delaware, Montana, and Oregon). You do not need to collect or remit sales tax on the vast majority of transactions. There is no sales tax permit requirement. This single fact reshapes the competitive position of NH service businesses relative to neighboring Massachusetts (6.25%), Vermont (6%), and Maine (5.5%). A cleaning service, landscaping company, or salon in NH has no sales tax compliance burden whatsoever.
No Individual Income Tax
Effective January 1, 2025, New Hampshire repealed the Interest and Dividends Tax — the last remnant of personal income taxation. NH is now the 9th state in the country with no tax on personal income. LLC members and sole proprietors pay no NH state income tax on business profits passed through to them personally. Note: this does not affect the Business Profits Tax (BPT), which is a business-level tax.
Business Profits Tax (BPT)
The BPT is a 7.5% tax on the net taxable profits of business organizations conducting business in NH. For taxable periods beginning on or after January 1, 2025, the filing threshold is gross business income exceeding $109,000 (adjusted biennially). LLCs and partnerships file Form NH-1065; S-corporations file NH-1120-S; C-corporations file NH-1120. Due date for calendar-year filers: April 15. Estimated quarterly payments required if annual BPT liability will exceed $200. Note: a pending legislative proposal would reduce the BET (not BPT) rate to 0.50% effective December 31, 2026 — not yet enacted as of this writing.
Business Enterprise Tax (BET)
The BET is a 0.55% tax on the “enterprise value tax base” — the sum of all compensation (wages, salaries, benefits), interest paid, and dividends paid by the business enterprise. The filing threshold for periods beginning on or after January 1, 2025 is gross receipts exceeding $298,000 or an enterprise value tax base exceeding $298,000. The BET is often described as a minimum tax because BET paid is fully creditable against BPT liability. A business that pays $10,000 in BET and $30,000 in BPT pays only $20,000 net BPT — the BET credit prevents double taxation.
Rooms and Meals Tax
An 8.5% tax applies to prepared food sold by restaurants and food service establishments (including food trucks), room rentals, motor vehicle rentals, and certain campsite fees. If your business sells prepared food or rents rooms, register with the DRA and display your registration number. Registration is free at revenue.nh.gov. File monthly or quarterly depending on sales volume.
Step 3: Register with NH Employment Security
Register with NH Employment Security (NHES) at nhes.nh.gov before your first payroll. NH unemployment insurance taxes apply to the first $14,000 in gross wages paid to each employee per calendar year. The new employer rate for 2026 is 2.7%. Experienced employer rates range from 0.1% to 8.5% based on claims history.
New Hire Reporting
Report all new hires within 20 days of the hire date through the NHES Web Tax and New Hire Reporting System at nhes.nh.gov/webtax. Required information includes employee name, address, Social Security number, hire date, and employer FEIN.
Step 4: Minimum Wage and Pay Requirements
New Hampshire sets its minimum wage equal to the federal minimum wage under the Fair Labor Standards Act (FLSA) — currently $7.25 per hour. Unlike the neighboring states of Massachusetts ($15.75/hr in 2026), Maine ($15.10/hr), and Vermont ($14.01/hr), NH has not enacted a state minimum wage above the federal floor. The tipped employee minimum cash wage in NH is 45% of the minimum wage — currently approximately $3.26 per hour — provided tips bring total hourly compensation to at least $7.25. NH has no mandatory paid sick leave law and no state paid family and medical leave program as of 2026 (a voluntary program exists but is not employer-mandated).
Step 5: Get Workers Compensation Insurance
New Hampshire RSA 281-A:5 requires workers compensation insurance for every employer with any employees — there is no minimum employee threshold. Even one part-time employee triggers the requirement. Limited exceptions exist: sole proprietors and partners are not required to cover themselves personally; an LLC with 3 or fewer members and no additional employees may elect to opt out of coverage for the member-owners.
New Hampshire operates a competitive workers compensation market — you purchase coverage from a licensed private carrier. No state fund exists for private employers. If no voluntary-market carrier will write your policy, coverage is available through the NH Assigned Risk Pool administered by NCCI (800-622-4123). NH approved a 6.1% workers comp loss cost reduction effective January 1, 2026 — the 14th consecutive year of reductions, with a cumulative decrease of more than 66% over that stretch. More info: dol.nh.gov/workers-compensation.
Step 6: Local Business Licensing
New Hampshire has no statewide general business license. Local licensing requirements vary by municipality. Many NH cities and towns require a local business permit or license for certain types of operations — food service, retail establishments, home occupations, and others. Always contact your city or town clerk before opening. Key contacts:
- Manchester: City Clerk / License and Inspection Division — local permits vary by business type
- Nashua: City Clerk — Hawkers and Peddlers permits + environmental health for food service
- Concord: City Clerk and Planning Department — home occupation permits, sign permits
- Portsmouth: City Clerk — street vendor permits, sign permits, home occupation regulations
- Salem: Town Clerk — contact for border-retail specific requirements
NH towns have exceptionally strong local government traditions. Even small towns often have local ordinances that affect businesses operating within town limits. Verify before you commit to a location.
Step 7: Industry-Specific State Licenses
New Hampshire routes most occupational and trade licensing through the NH Office of Professional Licensure and Certification (OPLC) at oplc.nh.gov. OPLC administers licensing for cosmetology, barbering, mechanical/HVAC (fuel gas fitters), plumbing, electrical, and many other trades. Other agencies handle specific industries:
- Childcare / daycare: NH DHHS Child Care Licensing Unit (CCLU) under He-C 4002 (updated August 2025)
- Food service / mobile food units: NH DHHS Food Protection Section
- Private investigators: NH State Police Permits and Licensing Unit under RSA 106-F
- Commercial pesticide applicators (landscaping): NH Department of Agriculture, Markets and Food (DAMF), Division of Pesticide Control
- HVAC / fuel gas / oil heating: NH OPLC Mechanical Safety and Licensing Board
- Hair salons / cosmetology: NH OPLC Board of Barbering, Cosmetology and Esthetics
New Hampshire’s Economy: Where the Business Opportunities Are
New Hampshire’s economy of 1.4 million people is defined by one macro force more than any other: its MA/VT/ME border tax-arbitrage position. No sales tax and no individual income tax draw consumers, retirees, and remote workers from Massachusetts — the 10th largest state economy — into southern NH at a scale that shapes entire regional markets. Salem, Plaistow, and Nashua form the densest cross-border retail corridor in New England: Salem’s Rockingham Park area generates more taxable sales per capita than most of New Hampshire’s other cities combined. Massachusetts residents routinely drive across the border to purchase cars, electronics, building materials, alcohol, and clothing tax-free. Service businesses in Hillsborough and Rockingham Counties inherit this customer base.
Manchester (110,000 population, Hillsborough County) is the largest city, the commercial hub, and the location of Manchester-Boston Regional Airport — one of New England’s fastest-growing airports, which draws air travelers who prefer to avoid Boston Logan’s congestion and parking costs. Manchester’s economy is anchored by healthcare (Elliot Health System, Catholic Medical Center), financial services, and a growing technology corridor. The Millyard — the historic Amoskeag Manufacturing complex along the Merrimack River — has been converted into office and light industrial space that houses dozens of NH-based businesses.
Nashua (90,000, Hillsborough County, MA border) is NH’s second-largest city and a major employment center. BAE Systems, headquartered in Nashua, is one of NH’s largest private employers — a defense electronics contractor that employs thousands at its Nashua campus. The healthcare market includes Southern NH Health and St. Joseph Hospital. Nashua’s proximity to the Massachusetts border (and Boston tech jobs) drives strong demand for housing-related services, cleaning services, and childcare. The Pheasant Lane Mall draws regional shopping traffic.
Portsmouth (Rockingham County) is New Hampshire’s seacoast city — one of the oldest continuously operating cities in the United States (founded 1623). The Pease International Tradeport on the former Pease Air Force Base is a major economic engine, housing hundreds of companies in aerospace, defense, healthcare, and logistics. Portsmouth’s Market Square and waterfront district drive tourism, restaurant, and service demand year-round, with peak season June through October.
Concord (Merrimack County, state capital, 44,000) anchors the state’s healthcare, legal, and government sectors. Concord Hospital (part of Capital Region Health Care) and the NH Hospital campus generate substantial service-sector demand. Professional and government services create a consistent year-round customer base less vulnerable to seasonal swings than resort communities.
The Lakes Region (Laconia, Meredith, Wolfeboro, Ossipee) drives intense seasonal business concentration. Laconia Motorcycle Week — the oldest motorcycle rally in the world, held each June — draws 300,000+ visitors in a single week. Lake Winnipesaukee summer tourism runs Memorial Day through Labor Day, with peak demand for food trucks, cleaning services (vacation rental turnovers), and landscaping spiking dramatically. Year-round residents are a smaller base; businesses must plan for extreme seasonal revenue concentration.
The White Mountains (North Conway, Lincoln/North Woodstock, Littleton, Gorham) drive ski-season and foliage-season tourism. Bretton Woods, Loon Mountain, Cannon Mountain, and Waterville Valley generate ski traffic from November through April. North Conway’s outlet shopping corridor operates year-round. These communities have high housing and retail costs relative to their population, which benefits service businesses capable of serving the tourist economy.
Cost to Start a Business in New Hampshire
| Item | Minimum Cost | Typical Cost |
|---|---|---|
| LLC formation (Certificate of Formation) | $100 (mail) | $102 (online) |
| Registered agent (first year) | $0 (serve yourself with NH address) | $49-$150 |
| Annual Report (year 2+) | $100 | $100 |
| Trade Name / DBA (if needed) | $50 (5-year term) | $50 |
| Federal EIN | $0 | $0 |
| General liability insurance (annual) | $400-$600 (service business, solo) | $800-$2,000 (varies by industry) |
| Industry-specific license (if required) | $0 (none required for some) | $55-$275 (OPLC, DAMF, DHHS) |
| Total estimated first-year setup cost | ~$600 | $1,100-$3,000 |
New Hampshire Business Guides by Industry
Choose your industry for a detailed breakdown of every license, permit, and requirement:
- How to Start a Cleaning Service in New Hampshire
- How to Start a Food Truck in New Hampshire
- How to Start a Daycare in New Hampshire
- How to Start an HVAC Business in New Hampshire
- How to Start a Hair Salon in New Hampshire
- How to Start a Landscaping Business in New Hampshire
- How to Become a Private Investigator in New Hampshire
New Hampshire Business Resources & Official Links
- NH Secretary of State – QuickStart Business Filing System
- NH SOS – Forms and Fees
- NH SOS – Trade Name Registration
- NH DRA – Business Taxes Overview (BPT, BET, R&M)
- NH Employment Security – Employer Taxes and New Hire Reporting
- NH Dept of Labor – Workers Compensation
- NH OPLC – Office of Professional Licensure and Certification
- NH DHHS – Department of Health and Human Services
- IRS – Apply for an EIN (Free)
Frequently Asked Questions
How much does it cost to form an LLC in New Hampshire?
Filing a Certificate of Formation with the NH Secretary of State costs $100 by mail or $102 online (the $2 is an online handling fee). After formation, LLCs must file an Annual Report each year by April 1 at a cost of $100. A $50 late fee applies after April 1. Commercial registered agent services typically cost $49-$150/year. Total first-year setup costs typically run $250-$450, not counting licenses or insurance.
Does New Hampshire have a sales tax?
No. New Hampshire has no general sales tax — one of only five states without one (along with Alaska, Delaware, Montana, and Oregon). You do not need to collect or remit sales tax on most sales of goods or services, and there is no sales tax permit requirement. However, an 8.5% Rooms and Meals Tax applies to prepared food sold by restaurants and food trucks, to room rentals, and to vehicle rentals. Cleaning services, landscaping, and most professional services are not subject to any NH state tax at point of sale.
Does New Hampshire have an income tax?
No. New Hampshire’s Interest and Dividends Tax was fully repealed effective January 1, 2025, making NH the 9th state in the country with no tax on personal income. LLC members pay no NH state income tax on business income passed through to them. New Hampshire still has the Business Profits Tax (BPT) at 7.5% on net business profits above $109,000 — but this is a business-level tax, not a personal income tax.
Does New Hampshire require workers compensation for all employers?
Yes. RSA 281-A:5 requires workers compensation insurance for every employer with any employees — there is no minimum employee threshold. Even a single part-time employee triggers the requirement. Limited exceptions: sole proprietors and partners may elect not to cover themselves; an LLC with 3 or fewer members and no other employees may opt out. NH approved a 6.1% workers comp rate cut for 2026 — the 14th consecutive year of reductions with a cumulative decrease of more than 66%. Purchase coverage from any licensed NH carrier or the NCCI Assigned Risk Pool.
Does New Hampshire have a state minimum wage above federal?
No. New Hampshire’s minimum wage is equal to the federal minimum wage under the Fair Labor Standards Act — currently $7.25 per hour. NH ties its minimum wage to the federal rate by statute, so it adjusts automatically if Congress raises the federal floor. As of 2026, the federal rate has not been raised since 2009. The tipped employee minimum cash wage is 45% of the minimum wage, or approximately $3.26/hour, provided total compensation including tips reaches $7.25/hour.
Does New Hampshire have a general business license?
No statewide general business license exists. However, many industries require state licenses from specific agencies: OPLC for cosmetology, mechanical/HVAC, and many other trades; DHHS for childcare and food service; NH State Police for private investigators; NH DAMF for commercial pesticide applicators. Many municipalities also require local business permits — contact your city or town clerk to confirm local requirements before opening.
What is the NH Annual Report deadline and what happens if I miss it?
NH LLCs must file an Annual Report with the Secretary of State by April 1 each year following the year of formation. The filing fee is $100. A $50 late fee applies after April 1. Failure to file can result in administrative dissolution — the LLC loses its legal standing and authorization to do business in New Hampshire. To reactivate after dissolution requires additional filings and fees. File at quickstart.sos.nh.gov.
Business Guides for All States
Browse LLC formation, licenses, and permit requirements for every U.S. state.
