How to start a business in New Hampshire in 14 steps (2025 guide)

New Hampshire is known for the fiercely independent spirit of its people. So if you’ve decided to start a small business in 2025, you’ll find that the Granite State is a natural fit. Ready to tackle the excitement, challenges, and growth opportunities that come with starting a business? Our guide will show you the essential steps of how to start a business in New Hampshire.

Why start a business in New Hampshire in 2025?

New Hampshire boasts a stunning landscape of mountains, lakes, and forests, attracting tourists and outdoor enthusiasts. This natural beauty contributes to a high quality of life, making it an attractive place to live and work. 

The state’s business-friendly climate is another major draw. With no state income tax or general sales tax to pay, many New Hampshire businesses enjoy a significantly lower tax burden. That’s one of the major reasons why New Hampshire is a thriving state for independent entrepreneurs, with 99% of the state’s companies classified as small businesses, according to the U.S. Office of Advocacy.

Cities like Manchester, Nashua, and Concord offer a mix of urban amenities and a strong sense of community. While the state's population is relatively small, it provides a loyal customer base and a lower cost of living compared to many other Northeastern states. New Hampshire's proximity to major metropolitan areas like Boston makes it accessible to larger markets when trying to grow a business. 

Looking to begin a new venture in New Hampshire? Here are the topics we’ll cover in this step-by-step guide:

• 14 steps to starting a business in New Hampshire
• Step 1: Decide what type of industry is best for your business
• Step 2: Conduct industry research
• Step 3: Create a business plan
• Step 4: Choose your business entity: Types of business entities in New Hampshire
• Step 5: Secure funds: New Hampshire small business funding, loans, and grants
• Step 6: Choose your New Hampshire business name and New Hampshire DBA
• Step 7: Pick a business location in New Hampshire
• Step 8: Find a New Hampshire registered agent 
• Step 9: Get a New Hampshire EIN and file your tax and employer identification documents 
• Step 10: Register as a small business in New Hampshire 
• Step 11: Register for your business license and permits in New Hampshire
• Step 12: Secure insurance for your New Hampshire small business 
• Step 13: Prepare to pay taxes on your business in New Hampshire
• Step 14: Set up your business bank account
• Additional resources to get your business started
• Frequently asked questions 

14 steps to starting a business in New Hampshire

Want to break into Nashua’s tech scene or open a small ice cream shop in Bethlehem? New Hampshire’s various industries and landscapes offer you a plethora of possibilities. Below, we break down each step, from refining your idea to setting up a foundation for growth. With small business resources and insights tailored to New Hampshire, you’ll be prepared for success.

Step 1. Decide what type of industry is best for your business 

First, you'll need to determine which industry is conducive to the products and services you plan to offer. Your healthcare background may come in handy if you're located near a medical or specialized research facility in Concord. Then, look at your skills and figure out what gaps in the market you can fill. If you’re looking for more inspiration, explore this list of over 60 small business ideas to help get your wheels turning.

Step 2. Conduct research in your business’s industry

Look at what your potential competitors are offering, identify your target market, and check with your local chamber of commerce for advice on what you can bring to the community. Generally, you want to verify that there’s demand for your product or service in your market but also that it’s not already overcrowded with competition in the same industry. 

Conducting a competitive analysis is an especially critical step. This analysis will tell you who your main competitors are, where their strengths and weaknesses lie, and how your business can set itself apart. 

Step 3. Create a business plan

Your business plan is the refined road map that will set you on the path to success. You’ll use it to further outline your business concept, plan how to finance your operation, and identify potential clients and marketing strategies. Lenders and investors will also want to see your business plan when they consider your venture for financing.

A strong business plan should include the following elements:

• Executive summary: Give a brief summary of your business and its goals.
• Company description: Summarize your company’s offerings and objectives.
• Market research and potential: Assess your target market and relevant trends in the industry.
• Competitive analysis: Identify your main competitors and how your business will differentiate itself.
• Products and services: Specify your core product and service offerings.
• Marketing and sales: Describe how you’ll reach, convert, and retain customers.
• Business financials: Provide financial projections such as income statements and cash flow forecasts.
• Management and leadership: Discuss your team members, their experience, and their roles.
• Funding request: Create detailed funding requests and plans for how you’ll use the funds.
• Appendix: Add supporting documents, such as market research data or financial statements.

Using a template can make it easier to put your business plan together, so check out some of the many free business plan templates available online, including resources from the New Hampshire Small Business Development Center.

Step 4. Choose your business entity: Types of business entities in New Hampshire

When forming your New Hampshire business, you’ll need to choose from several business entity structures. Each offers varying degrees of liability protection and carries various tax implications. Choose one of these structures for your business: 

Sole Proprietorship

A business owned and operated by one person, with no legal distinction between the owner and the business.

General Partnership

A business owned by two or more people who share profits, losses, and management responsibilities.

Corporation 

A legal entity separate from its owners, with shareholders who have limited liability for the company's debts and obligations.

Limited Liability Company (LLC)

A hybrid business structure combining the limited liability of a corporation with the tax flexibility of a partnership. Learn more about LLCs.

Step 5. Secure funds: New Hampshire small business funding, loans, and grants

You’ll also need startup funds to get your New Hampshire small business up and running. From securing a location and hiring employees to purchasing equipment and inventory, expenses can come hard and fast for a new business. It’s important to consider a wide range of funding sources, including: 

Remember to look into New Hampshire’s state-level funding sources as well, including:

New Hampshire-specific funding sources 

• New Hampshire’s Community Loan Fund offers a variety of specific loans for small businesses just starting out. These include loans for local food ventures and minority-owned businesses. 
• The New Hampshire Business Finance Authority provides financing via loans, credit enhancement, early-stage capital, and direct financing.

Step 6. Choose your New Hampshire business name and New Hampshire DBA

Select a business name that helps you stand apart from your competition and reflects your products and services offerings. Your name must be unique and not currently used by another business. To ensure your preferred name is available, first search for it via the New Hampshire Department of State website. 

Reserve your business name

You’ll reserve your New Hampshire business name through your local county clerk. If you’re a corporation, however, you’re also required to register your name with the New Hampshire Secretary of State. 

Filing a trade name or DBA (Doing Business As)

A DBA, short for “Doing Business As,” is the name you’ll need to register if you intend to do business under another name different than your business’s legal name. In the state of New Hampshire, a DBA is known as a “trade name.” You can file your trade name through the Department of State’s online portal or mail in an Application for Registration of Trade Name. 

Step 7. Pick a business location in New Hampshire

Choosing a business location will depend on several factors, including where you currently live, the cost of doing business in a particular location, and accessibility to customers, clients, and infrastructure. It’s also important to consider local business regulations, especially if you’ll be running your business from your home since some jurisdictions might prohibit home-based businesses.

While New Hampshire is a primarily rural state, it does have some notable urban centers where many new businesses choose to open, including: 

Manchester

• The city has a long history of manufacturing, so you’ll have access to a skilled workforce and infrastructure.
• Textiles, electronics, and machinery manufacturing also have a strong presence in the city. 
• The city offers several business resources to help you get started. 

Concord

• As the state capital, government and public administration are significant industries here.
• Concord is home to a developing tech scene, especially in software development and IT services.
• There’s plenty of room in Concord for professional services such as law, accounting, and consulting firms.
• You may be able to find skilled workers and young talent from the city’s four-year institutions and community colleges. 
• Check out the city’s business resources for more.

Nashua

• Nashua's cost of living is generally higher than the national average but lower than many larger cities. Housing, utilities, and transportation costs are factors to consider if you want to start a business here. 
• Big businesses in town include global and aerospace defense company BAE Systems, along with SkillSoft and Dell Technologies. 
• Nashua also has a thriving tech ecosystem with numerous smaller and midsize companies contributing to the city's economic growth.
• Other popular Nashua industries include retail and healthcare.

Step 8. Find a New Hampshire registered agent

If you have a business in New Hampshire, you’ll need to hire someone or appoint yourself as a registered agent. Whether an individual or a professional service, a registered agent is a person tasked with accepting all legal or governmental notices and documents on your behalf and passing them along to you. In order to be a registered agent, an individual or service must be over the age of 18, maintain a business office in the state with a physical address, and keep regular hours. While some states don’t allow it, you can be your own registered agent in New Hampshire. Just make sure to file your agent name and address through the Secretary of State’s office.

Step 9. Get a New Hampshire EIN and file your tax and employer identification documents

An EIN (Employer Identification Number) is a nine-digit number the IRS uses to identify your business for tax purposes. Although XX doesn't require a state EIN, you'll need one to file payroll taxes and federal tax returns, open a business bank account, and apply for loans. You can apply for a free EIN through the IRS website.

Step 10. Register as a small business in New Hampshire

Most businesses operating in the state need to register with the New Hampshire Secretary of State’s office. Here are more specific requirements based on the type of entity you’re registering. Keep in mind that you’ll also have to pay a registration or filing fee for each, which may vary. Here are the requirements and applicable fees for common business structures.

Step 11. Register for your business license and permits in New Hampshire

Once your registration is complete, you’ll need to obtain any licenses or permits that allow you to legally operate. If you’re in a specific profession—engineering, occupational therapy, or hairdressing, for example—you’ll need to obtain a professional license for your industry. If you’re in the food business, you’ll need a food handler’s permit. Those serving alcohol will require an ABC license. You may also need zoning permits and local police jurisdiction permits to operate in your county or municipality. 

Check with your county clerk to determine the necessary permitting and licensing requirements. Or browse the statewide permits and licenses you may need at NH.gov. 

Do you need a business license in New Hampshire?

There’s no overarching business license needed to start a new business in the state. Just make sure you’ve done your due diligence on local permitting. 

Step 12. Secure insurance for your New Hampshire small business

Business insurance is instrumental in protecting you against unexpected risks, such as accidents, lawsuits, property damage, and employee injuries. Choosing the right insurance package can make sure you’re protected. 

Types of small business insurance in New Hampshire 

Here are the most common types of coverage New Hampshire small business owners need: 

Step 13. Prepare to pay taxes on your business in New Hampshire

There are numerous tax advantages to locating your business in New Hampshire. The state doesn’t have a sales tax; the 3% individual income tax is only applicable to dividends and interest income, and the corporate tax rate is 7.5% across the board. Review more state and tax obligations below.

Business profits tax

New Hampshire’s Business Profits Tax (BPT) is a tax on the profits your business makes in the state. Starting January 1, 2025, businesses with gross business income from all business activities of more than $109,000 must file a BPT return.

Business enterprise tax

New Hampshire’s Business Enterprise Tax (BET) is a 0.55% tax on the total compensation, interest, and dividends your business pays. Starting January 1, 2025, it applies if your gross receipts or enterprise value is above $298,000. 

Payroll taxes

If you have employees, you'll need to withhold wages to pay unemployment taxes, along with Medicare and Social Security taxes. 

Federal taxes

In addition to state and local taxes, all businesses must pay applicable federal taxes, including:

• Federal income tax
• Self-employment tax (for sole proprietors and partners)
• Employment taxes (if you have employees), including the Federal Unemployment Tax Act (FUTA tax)
• Excise taxes (for certain industries)

To ensure you understand your federal tax obligations, check out these IRS resources: Publication 334, Tax Guide for Small Business and Publication 583, Taxpayers Starting a Business and Keeping Records.

Tax credits and incentives for New Hampshire employers

Look for local tax credit opportunities in your county, or ask your accountant about incentives available in your industry. Here are some that New Hampshire offers:

• The Coos County Job Creation Tax Credit grants tax credits to employers that pay higher wages in Coos County. 
• The New Hampshire Tax Credit Program for Business Donors awards businesses engaged in community economic development initiatives.

Step 14. Set up your business bank account

Whether you’re starting a corporation in New Hampshire or a single-person LLC, you’ll need to keep all your personal and business finances separate. Here’s how the process of opening a dedicated bank account for your business works: 

1. Gather business documents, such as registration, professional licenses, and your federal EIN, to open your small business bank account.
2. Find a bank or credit union that provides the needed business banking services, whether it’s a minimum balance, personalized customer service, or electronic bill-pay services. 
3. Establish credit by applying for a business credit card and using it for supplies and equipment. 
4. Select an intuitive accounting software to keep all your accounts, vendor payments, and incoming invoices in one place. 
5. Hire a professional accountant or bookkeeper to help with financial planning and New Hampshire quarterly and annual taxes.

Additional resources to get you started

These resources can help you find the information, funding, and training you need to start a successful small business in New Hampshire.

State resources

• New Hampshire Business Information: Find key business information in this one-stop portal, including taxes, permits, funding opportunities, and much more.
• New Hampshire Small Business Development Center: Here’s another top source for educational courses, networking programs, funding options, and other small business resources.
• New Hampshire Tech Alliance: This organization works to develop New Hampshire’s tech sector and offers help to new technology companies through a range of special programming and events.

Federal resources 

• Small Business Administration (SBA): The SBA supports small businesses through various loan programs, including the 7(a) loan, provides resources for government contracting, and offers counseling and training programs to help entrepreneurs start and grow their businesses.
• Grants.gov: This centralized platform simplifies the process of searching for and applying for federal grants across various sectors. It also provides grant writing tips and has a Grants Learning Center featuring the basics of grants, eligibility, and more. 
• Small Business Innovation Research (SBIR) and Small Business Technology Transfer (STTR): SBIR and STTR programs provide research and development funding to innovative tech companies. 
• SCORE: SCORE is a national nonprofit organization that partners with the U.S. Small Business Administration (SBA) to provide free mentoring and educational resources to entrepreneurs and small business owners. While not a direct federal agency, SCORE is an independent organization with a network of volunteer business mentors across the United States.
• U.S. Department of Agriculture (USDA): The USDA website lists grants, loans, and other programs and resources for farmers and other businesses serving rural America. 

Disclaimer: 

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