How to Get Small Business Licenses and permits in New Hampshire

How to Get Small Business Licenses and permits in New Hampshire

If you’re thinking of starting a business in New Hampshire, you already know that there are many factors to consider, such as your business model, market potential, and promotional materials. However, while you may be focused on the fundamental aspects of starting and running your new venture, you can’t forget about the legal details.

Licensing and permitting are crucial steps for getting your company off the ground. Fortunately, in New Hampshire, you don’t have to jump through as many hoops or pay as many licensing fees as you do in other states. Even better, we’ve compiled a list of the various permits you may need to secure, as well as the steps required to get them. Here’s everything you need to know about how to get small business licenses and permits in New Hampshire.

The purpose of business licenses and permits

There are several primary reasons for states (and cities) to impose licensing and permitting requirements. First, these requirements may be used for tax purposes. For example, if you collect sales tax on each purchase, you must report those earnings and submit them to the state.

Second, permits and licenses are often designed to protect consumers. While regulations can feel onerous to business owners, they can help mitigate fraud and other exploitative practices. For example, some licenses require testing to ensure that you know what you’re doing. Otherwise, you could put people’s health and safety at risk.

Business Licenses vs Permits

There are two core differences between licenses and permits:

  1. A business license refers to the general operation of a company. For example, you may need a license just to have a business within a particular state, no matter what you sell. A permit refers to the specific operation of your venture. One example may be a food service permit, which is required for all food vendors, such as restaurants and grocery stores.
  2. Another crucial difference is the timeline for a license or permit. Typically, licenses are renewed annually (or longer) to keep your business legal in the eyes of the state. Permits, however, may be temporary or last for a short period. For example, you may secure a vendor’s permit to sell for a specific event, but you’re not allowed to sell at that particular site after the event ends.

Types of Business Licenses and Permits You May Need for Your New Hampshire Business

State and Local Business Licenses and Permits

Depending on your business and where it’s located within the state, you may need to obtain statewide, countywide, or citywide permits and licenses. In some cases, you may need permits from all three for different reasons. Here’s a quick overview of the most common business licenses and permits and their requirements in New Hampshire.

General Business License – New Hampshire does not require new entities to get a general business license. But you must register your business with the Secretary of State. Keep in mind that each business entity (sole proprietorship, LLC, C-Corp) has different tax rules and benefits, so make sure you choose the right one for your needs.

Seller’s Permit – In states that impose a sales tax, you need to obtain a seller’s permit. This permit allows you to collect, report, and submit sales taxes on behalf of the government. However, New Hampshire does not collect sales taxes, so this permit is unnecessary.

Food Service Permit – If you’re opening a restaurant, food truck, food store, bed and breakfast, or any other business that handles and sells food, you must get a food service permit. You can either fill out and submit the application in person or set up an online account and handle everything through the New Hampshire Department of Health and Human Services website.

Alcohol Sales – Alcohol is tightly regulated in New Hampshire, so you must obtain a specific license based on the type of business you’re running. For example, there’s a license for beer festivals, and another one for hotel lounges. You can find a complete list of alcohol license types on the New Hampshire Liquor Commission website.

Hair Styling – Like most states, New Hampshire requires all barbers and hair stylists (including those working at cosmetology schools) to get licensed. You must become licensed to learn the trade (become an apprentice) and get a license when starting your own business. The Office of Professional Licensure and Certification (OPLC) oversees these applications.

Meals and Rentals License – New Hampshire requires all owners of hotels, bed and breakfasts, or rental car companies to get a special Meals and Rentals (M&R) license. This license is necessary because the state imposes a special tax on these businesses, so you must collect the tax on the state’s behalf.

Many other professional services require specific licensing, so you’ll have to look up the requirements online. Some examples including accountants, general contractors, auto dealerships, massage therapy, and many more. You can review most of these applications on the OPLC website.

Specialty Specific Federal Business Licenses and Permits

Even if you only do business in New Hampshire, you may fall under the jurisdiction of a federal agency. For example, alcohol sales are overseen by the Alcohol and Tobacco Tax and Trade Bureau (TTB), which is a division of the Department of the Treasury. In these instances, you may have to get a license from the federal agency along with any required by the state of New Hampshire.

Thankfully, you can find a complete list of agencies and license requirements online, courtesy of the Small Business Administration (SBA).

How to Obtain Business Licenses and Permits in New Hampshire

Step 1: Determine Which Licenses and Permits Your Business Needs

Depending on what kind of business you’re starting, you may already know which permits you need from both the state of New Hampshire and the federal government. However, keep in mind that you may also need separate licenses from the city and/or county in which you plan to do business.

If you’re not sure whether you need a license, the best resource is the Licensed, Certified, and Registered Occupations in New Hampshire guidebook. This online directory will tell you which occupations and businesses require licensing, the agency that oversees licensing, and all the various requirements to get approved.

For federal licenses, the SBA website is the best resource. To help you understand the process, let’s look at what it takes to open a liquor store in New Hampshire.

First, you’ll have to create an online account for your business through the New Hampshire Online Licensing portal. There, you’ll submit an initial application. Because liquor stores have unique requirements, you’ll need to fill out paperwork for Section 178:9.

On the federal level, you must register your business with the TTB and follow all federal guidelines. Fortunately, in both cases, you can submit your application and processing fees online.

Step 2: Submit All Required Documents and Fees

New Hampshire makes it easy to submit any paperwork and payments for business licensing online. Once you create an account, you can access different forms and submit them securely through the portal.

Most federal agencies also have online portals for small businesses, but it depends on the agency. In some cases, you may have to submit physical paperwork by mailing or faxing it to the head office.

Step 3: Track the Status of Your Application and Await Approval

Because you can submit your paperwork online, you can also track the status of your application (typically, it will say “Pending/Under Review,” “Approved,” or “Rejected.” The time it takes to get approved for a particular license depends on the department, the license type, and the quality of your application. For example, it can take up to 120 days for a liquor license to be approved in New Hampshire.

Step 4: Renew If Needed

All licenses and permits must be renewed. However, the renewal date and fee varies from one license to the next. Typically, a license is valid for 12 months from the date of approval. In some cases, though, you must renew the license on a particular date, regardless of when you obtained it. Most agencies will also send you a notification reminder before your renewal date. If you miss the deadline, you’ll likely have to re-apply as a new business entity.

Conclusion

As you can see, getting licenses and permits for your business doesn’t have to be an overwhelming ordeal. With the right preparation, you can get all your paperwork done by the time you’re ready to open your doors. Best of all, once you have all your licenses in order, you can start marketing your business and generating sales. From there, success is inevitable.

FAQ

If you don’t get the correct business license or permit, your company can get shut down by the government. In some cases, you may be unable to conduct business in the state for a set period, depending on the circumstances. The state may also incur heavy penalties and fees.

No, sole proprietors do not need a general business license to sell goods or services in New Hampshire. As a rule, if you’re selling products as yourself (e.g., selling arts and crafts online), you don’t have to file official business paperwork. However, you must register your business with the Secretary of State if you’re working under a different company name or if you obtain an employer ID number (EIN) from the IRS.

Although you don’t have to get a business license in New Hampshire, you must file an annual report and pay a renewal fee with the Secretary of State. This report should include any changes you’ve made to the business, such as moving to a new address or forming a different entity type. This report is due by April 1st every year.