New Hampshire is a state located in an area in the United States knows as New England, situated in the northeastern of the country. It was named after the English county of Hampshire and is home to more than 1.3 million residents. Concord is the capital city but Manchester is the largest in the state.
Tourism is New Hampshire's leading industry, as many tourists come up to see the many beaches, mountains and lakes in the area. In the winter, visitors go to the northern part to enjoy skiing and other seasonal sports. The state's numerous summer homes and resorts have provided some enterprising residents the opportunity to engage in the profitable business of cleaning services.
New Hampshire is a low cost state where business owners and workers enjoy the one of the lowest tax burdens in the country. It is the state's policy that less taxes and smaller government are better long-term incentives for business. This measure must have proven successful since the Tax Foundation has ranked it 7th overall as having the Best Business Tax Climate. The state does not impose income taxes on individuals, franchise taxes on corporations and general sales or use taxes. However, businesses are imposed an enterprise tax and a portion of their net incomes are collected as profits tax. This favorable tax scheme has resulted in an excellent business climate for business startups, both large and small. In addition, the crime late is very low and the standard of living is high.
A business in New Hampshire can be a corporation, a limited liability company, a partnership or a sole proprietorship. A cleaning business, like most small businesses, is operated as a sole proprietorship. The law requires owners to file annual business profits tax and business enterprise tax returns. This practice is different from most states which allow profits and losses to be incorporated in individual income tax returns. The reason for this is that New Hampshire does not impose individual income taxes on its residents. The business owner files a state income tax return if he has more than $2,400 of interest and dividend income. The rate for this income range is 5%. The business profits tax rate is 8.5% of the net income if the gross income of the business exceeds $50,000. This is applicable to all types of businesses.
Zoning requirements at the area of business should also be taken into account by the owner who runs a home-based business, since there might be restrictions on how the business should operate. It is best to consult the concerned local agencies to avoid violations, especially when there are employees and suppliers coming over to the house on a regular basis. If there are hired employees, federal income taxes are withheld from the wages. No state income tax is withheld since this is not imposed. The owner, however, will be required to pay state unemployment tax if he pays more than a minimum amount of wages. This is paid by the employer and cannot be charged to employees.