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Department of Economic Development • City of Rochester, NH | |||||||||
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Starting a New Business in RochesterStarting your own business is truly the American Dream, and the City of Rochester in New Hampshire is one of the best places to make your dream come true. New Hampshire has been named 7th in the US for Economic Freedom and 1st Most Livable State. The City of Rochester is anticipating sustained and consistent population and business growth throughout the decade. Though the rewards are extraordinary, starting a business takes time and patience, hard work and perseverance, planning and organization. It will take commitment to get your business off the ground and planning to ensure operations run smoothly. To get you started we’ve listed some of the basic steps of starting a business with links to some of the resources available to you.
Step One: Create a Business PlanStarting a business off on the right foot is an important step to achieving your dreams. Planning and organizing your strategy is the first of many steps to making the dream a reality. Please visit the following websites for information on creating business plans and more start-up information:
Step Two: Permits – Local Licensing – Code EnforcementThe structure your business assumes is important in determining your limitations and liabilities. Depending on the type of structure you choose, additional paperwork may be necessary to establish the business in New Hampshire. The New Hampshire Secretary of State Corporate Division is responsible for the statutory filing of business entities, trademarks and trade names and numerous miscellaneous filings. The Division is responsible for recording all required information regarding Business Entities and making this information available to the public. Scroll over the business entity type in the following list for a brief description of each of the principal types of legal business structures available in New Hampshire. Your accountant or attorney can help you decide what type of business structure best fits your needs. Sole ProprietorshipA sole proprietorship is the form of business entity with the least amount of legal formalities. In a proprietorship, the owner assumes sole responsibility for the operations and finances of the business, including profit and loss. In the proprietorship form of business entity, the owner?s personal property is tied directly to the business; therefore, the owner assumes unlimited risk of his personal assets.
"C" Corporation Corporations are a separate entity from its owners. Corporations provide the shareholders with the most protection from liability and responsibility from debts and contracts. Profits for a corporation are taxed at the corporate level when the income is earned and is also taxed at the individual shareholder level.
"S" Corporation An "S" Corporation is similar to a corporation in that it provides its shareholders with protection from liability. However, unlike a corporation, an "S" corporation is exempt from federal income tax. Instead the taxes are paid solely by the individual shareholders.
General Partnership General Partnerships require an agreement between two or more individuals or entities to jointly own and operate a business. Profit, loss and managerial duties are shared among the partners, and each partner is personally liable for partnership debts. Partnerships do not pay tax, but must file an informational return, while individual partners report their share of profits and losses on their personal return. Short term partnerships are also known as joint ventures.
Limited Partnership A limited partnership is a form of business organization that offers some of the partner's limited liability. It consists of a general partner who organizes and manages the partnership and its operations, and limited partners who contribute capital but have limited liability and assume no active role in day-to-day business affairs.
Limited Liability Partnership LLP's are organized to protect individual partners from personal liability for the negligent acts of other partners or employees not under their direct control. LLP's are not recognized by every state and those that do, sometimes limit LLP's to organizations that provide a professional service, such as medicine or law, for which each partner is licensed. Partners report their share of profits and losses on their personal tax returns. Check with your Secretary of State's office to see if your state recognizes LLP's and if so, which occupations qualify.
Limited Liability Company A Limited Liability Company (LLC) is a combination of the corporate and partnership forms of business. In an LLC, parties control shares of the company and like corporations, and their liability for the operations of the company is determined by their level of investment. However, like partnerships, income tax is not paid at the LLC level, but rather it is "passed through" and taxed at the shareholder level. This somewhat complicated form of business entity should be discussed further with an attorney or accountant to determine if it will fit your needs.
Each of the above has legal, tax, and practical consequences that may require the advice of an attorney and/or CPA. You may contact the NH Bar Association website or call them at 603-224-6942 for a listing of attorneys. For information on licensing at the local level, contact the staff of the Code Enforcement Department at 603-332-3508.
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Step Three: FundingAll businesses require some form of financing. An integral component of starting a successful business is raising sufficient capital. There are many challenges here, but numerous resources are available to help you. While the state of New Hampshire does not provide outright grants to companies, there are several public sources for debt and equity and private venture capital possibilities. Use the links below to view some of the resources available to you: Local Bank & Financial Institutions:
Public Sources: Community Development Finance Authority (CDFA) Certified Development CorporationsEvery area in the state is served by a Certified Development Corporation which provides long-term, fixed rate second mortgage loans for capital investment through the SBA 504 Loan Program: Southeast Economic Development Corporation Private Venture Capital Sources: Borealis Ventures Information on Angel Investment Groups Kauffman Foundation
Local Funding ResourcesMany local and regional revolving loan funds exist throughout New Hampshire. These funds have been capitalized from a variety of services, many with federal monies. The administration of these funds is generally handled by a non-profit corporation, while the local funds most often are overseen by governing bodies with the help of a loan committee. The loans may be used in conjunction with other sources to leverage additional monies or independently finance the project. JOB Loan Program – The City of Rochester’s JOB opportunity Loan Program is funded by the U.S. Department of Housing and Urban Development (HUD) through a Community Development Block Grant. If you would like to apply for a JOB Loan: Download brochure and application Sign and Façade Improvement Program Download brochure – To help with the challenges businesses face when they want to make important sign and façade improvements, the City of Rochester offers two types of financial and technical assistance for business or mixed-use property located in the downtown. Download application |
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Step Four: Choose a locationChoosing a location can be a challenge, and the best location will depend upon the type of business you are starting. Some businesses can even be “home-based”. No matter where in Rochester you are going to locate, please complete a “Letter of Intent” for the Planning Department letting the City know of your plans to operate a business. This letter allows the Planning Staff to determine what (if any) review is appropriate. Download Form Rochester has many professional Commercial Realtors and you can search for a Realtor and listed business sites at www.nhcpe.com. The State of New Hampshire has a free real estate listing service for either commercial or industrial space or land. www.nheconomy.com/newnedds/. In addition, the Economic Development Office attempts to maintain a current list of Commercial Vacancies in the Downtown Core (view current downtown vacancies) and available Industrial and Commercial properties throughout the City. Visit the Rochester Main Street website for more information on downtown Rochester. |
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Step Five: Register Your Business with the StateBusiness registration information for the state of New Hampshire may be obtained by contacting: Website: www.sos.nh.gov/corporate/index.html Business Name Registration information Some professional and business licenses may be applied for online at: http://nh.neinetwork.com |
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Step Six: TaxesThe Department of Revenue Administration is in charge of the collection of state taxes, such as the Business Profits Tax or the Enterprise Tax. Depending on the type of business you are operating, you may need to apply for a tax operator’s license. Select here for more information about tax operator's licenses. Business organizations that have expenditures made during the fiscal year for qualified manufacturing research and development may be able to benefit from the Research & Development Tax Credit. Please click here for further information about the Research & Development Credit (.doc). |
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Step Seven: Hiring EmployeesIf you will be hiring employees, please contact the New Hampshire Employment Security Office and the New Hampshire Department of Labor. You must register with this Department to cover unemployment benefits.
The Economic Development Office will be happy to assist you if you should require further assistance with getting started. Please call to make a confidential appointment at 335-7522.
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City of Rochester, New Hampshire, Economic Development Department, P 603-335-7522, info@thinkrochester.biz |
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Start a Business in Rochester
