There’s that time of the year when stress levels are at their highest for entrepreneurs – tax filing period. When starting a business in New Hampshire, be ready to experience these challenges as well because every business, no matter size, type, or nature of operations, is subject to a myriad of New Hampshire business taxes.
There are many kinds of taxes in the federal, state, as well as local levels that you must comply with. In addition, New Hampshire business tax requirements also depend on the nature of your business operations including the equipment you use, the number of employees you hire and even the business property you own.
To jumpstart your tax report and filing deliverables, this guide presents entrepreneurs with the most common taxes applicable to the majority of New Hampshire businesses.
Basically, there are two types of state business income tax required of New Hampshire entrepreneurs – the business profits tax (BPT) and the business enterprise tax (BET).
The former is a tax type imposed on business income, while the latter is applied to the enterprise value tax base on a business. Since the state already imposes two state taxes, income that passes through the entrepreneur personally will not be subjected to any more taxation.
An 8.5% flat rate is in effect for the business profits tax, but businesses with gross receipts that are less than $50,000 need not file for a BPT return. On the other hand, the business enterprise tax is at 0.75%. For detailed instructions on preconditions with regard to filing a BET return, refer to the NH Department of Revenue Administration Office.
In the same way that you need to observe the standard requirements for complying with business tax returns and filings, it is also essential that only the official standard forms are used. For New Hampshire federal tax forms and publications, head on over to the Department of Revenue Administration.
All entrepreneurs who qualify for the statutory requirements for New Hampshire unemployment insurance are required to file for this tax type. The unemployment insurance tax is allocated to employees who have been laid off from their work through no fault of their own.
It is a temporary benefit provided to the workforce of New Hampshire to sustain their livelihood while they are in the process of finding new work. For more information on unemployment insurance tax, check the NH Employment Security.
One of the few states that do not impose any form sales and use tax is New Hampshire, so there is no need to file returns on these tax types.
Tools and applications make for a significant contribution to minimize startup costs, maximize time without expending too much effort. There are many tools to use when starting a New Hampshire business, and these include small business accounting software.
These applications feature basic to advanced accounting functionality and a host of other attributes that facilitate automated tasks in various aspects of running a business.
Small business accounting applications, FreshBooks, QuickBooks, and Xero are some of the top choices by both entrepreneurs and accountants and bookkeepers alike for the very reason that they offer total packages when it comes to features, functionality, customer support, and pricing. Most often, these applications include a plus package that features customized invoice, import and export options, time tracking, payroll processing, inventory management, payment processing, and more.
At the end of the day, the selection criteria for choosing which accounting software to use should not be what’s best out there, but what’s best for your business. Since each startup has a number of different specific requirements, tailor your choice to what provides your business the most advantage.
Note that this article is intended for informational purposes only. This should not be taken as tax advice or as a legal document. For any questions pertaining to the legal aspects of New Hampshire business taxes or the specifics of starting a business in New Hampshire, consult the services of an accountant or a business lawyer.