The Granite State has a Gross Domestic Product (GDP) of $87.6billion (2019) and a per capita personal income of $66,418 which is higher than the US average of $47,675. The state’s largest sectors based on GDP contribution are real estate and rental and leasing, manufacturing, health care and social assistance, retail trade and professional, scientific, and technical services. The unemployment rate across the state in March 2020 was 5.3%.
The state has no personal income tax or a general sales tax. This is good news especially for entrepreneurs and small business (SMB) owners as they can divert the extra finances to other important business activities. However, the caveat is that a high cost of living cancels out the high per capita personal income and the jobs market is particularly competitive for skilled labor.
The state offers grants as well as consultations and counseling services to SMBs to assist them during trying times.
Here are some interesting statistics about small businesses in New Hampshire:
- There are 136,535 SMBs in the White Mountain State that account for 99% of all businesses in the state.
- Proximity to the vast New England market means that entrepreneurs and SMBs can reap the benefits of trading in a place like Boston MA and still establish a local identity in a small town in New Hampshire.
- The top five industries with the largest number of SMBs are:
- Professional, Scientific, and Technical Services – 20,793.
- Construction – 20,183.
- Other Services (except Public Administration) – 16,302.
- Real Estate and Rental and Leasing – 14,447.
- Retail Trade – 12,648.
- There are 300,628 small business employees in New Hampshire, 49.8% of all employees in the state.
- Self-employed individuals running their own incorporated businesses have an average of $51,000. Self-employed individuals at their own unincorporated firms have an average median income of $32,000.
- There are 2,239 small business exporters that are responsible for 30.2% of New Hampshire’s $5.1 billion worth of export revenue.
- State law requires that every New Hampshire LLC designates a New Hampshire registered agent that will be available during regular business hours at a physical address within the state.
- To form a New Hampshire corporation, you need to file your Articles of Incorporation along with a filing fee of $100.
- New Hampshire corporations must submit an annual report and list all owner/ shareholder information. The filing fee for the annual report is $102.
- New Hampshire has both a business profits tax (BPT), which is a tax on business income and a business enterprise tax (BET), which is a tax on a business’s enterprise value tax base. The BPT is at a flat rate of 7.5% for the period ending December 31st, 2021. The BET is also fixed at 0.5% until Dec 31st, 2021.
- In the year 2018, New Hampshire banks issued 27,861 loans under $100,000 while reporting under the Community Reinvestment Act. The total value of the loans was $390.1 million.
- To form an LLC (Limited Liability Company), you need to file your Certificate of Formation with the New Hampshire Secretary of State. The filing fee varies between $100-$125.
- Small businesses generated 7,216 net jobs in 2019. Firms employing fewer than 20 individuals added 5,328 net jobs. Businesses with 20-99 employees created only 714 net jobs.
- Industries with the largest share of small business employees include:
- Health Care and Social Assistance – 43,957.
- Accommodation and Food Services – 42,389.
- Retail Trade – 32,348.
- Manufacturing – 30,460.
- Construction – 26,333.
- The mining, quarrying, oil and gas extraction sectors have the smallest number of small businesses. A cumulative total of 81 firms.