The state of New Hampshire is renowned for being business-friendly. One of the few states that does not tax individual state income is this one. The solution is not that simple, though, when it comes to business income. Despite not having a standard corporate income tax, New Hampshire levies a Business Enterprise Tax (BET) and a Business Profits Tax (BPT).
A tax on business earnings, the BPT has a rate of 7.7% for the majority of companies. Businesses with gross receipts of under $50,000 are exempt from this tax, nevertheless. The BET, on the other hand, is a tax at a rate of 0.75% on the enterprise value tax base of a business, which covers compensation, interest, and dividends given to owners. Businesses having an enterprise value of less than $200,000 are free from this tax.
Businesses in New Hampshire must also file an annual report with the Secretary of State’s office in addition to paying these taxes. This report contains details about the owners, officers, and directors of the company. It also includes information about the company’s location, personnel, and industry.
As a red state, New Hampshire is known for its propensity to support conservative political ideologies. With the exception of 2020, the state has supported the Republican candidate in every presidential election since 2000. The state’s tax policies are not much impacted by this party allegiance, nevertheless.
A certificate of good standing in New Hampshire is a record that attests to a company’s compliance with state regulations and its right to operate there. When a company wishes to get funding or enter into agreements with other companies, this certificate is frequently needed. The Business Profits Tax and the Business Enterprise Tax nevertheless apply to enterprises in New Hampshire even though the state does not have a standard corporate income tax. Businesses must also submit an annual report to the Secretary of State’s office, and they could need a Certificate of Good Standing in order to operate legally in the state.