One of the nine states in the US without a personal income tax is New Hampshire. This implies that New Hampshire residents are exempt from paying state income tax on their earned income. This does not imply that New Hampshire has no taxes, either. The state of New Hampshire does impose a 5% tax on interest and dividends, and some of its villages and municipalities also impose local income taxes.
The Business Enterprise Tax (BET), in addition to the tax on interest and dividends, is a special tax that only applies to New Hampshire. The BET is a tax on the enterprise value tax base of a business, which is determined by aggregating shareholder dividends, interest, and compensation provided to employees. Businesses having an enterprise value tax base of $150,000 or less are exempt from the tax, which has a current rate of 0.6%.
How to become a registered agent might be on your mind if you want to launch a business in New Hampshire. A person or organization designated to accept legal documents on behalf of a business is known as a registered agent. You must be a citizen of New Hampshire or a company with a permit to conduct business there in order to be registered as an agent there. Additionally, you have the option of using a reputable registered agent service.
As a “red state,” New Hampshire is noted for its propensity to support the Republican party in presidential elections. However, the state has a long history of independent voters, and its particular style of libertarianism frequently has an impact on its politics. Both major parties have made significant investments in New Hampshire in recent years in an effort to win the state’s four electoral votes, making it a battleground state.
Finally, there are a few factors to take into account when choosing whether to create an LLC or a sole proprietorship. A limited liability company (LLC) is a sort of corporate organization that shields its owners from accountability for the debts and obligations of the company, protecting their personal assets. On the other hand, a sole proprietorship is a company owned by one individual who is personally liable for all of the company’s operations, including its debts and responsibilities. An LLC offers more security for its owners than a sole proprietorship, despite being easier and less expensive to set up.
In conclusion, New Hampshire is a state without a personal income tax, but it levies a Business Enterprise Tax, an interest and dividend tax, and other taxes. In New Hampshire, you need to be a resident or have permission to conduct business there in order to become a registered agent. In the “red state” of New Hampshire, where independent voters have a history, creating an LLC offers greater liability protection than establishing a sole proprietorship.