How to Start a Courier and Delivery Business in New Hampshire

How to Start a Courier and Delivery Business in New Hampshire

How to Start a Courier and Delivery Business in New Hampshire

A courier and delivery business can be a solid opportunity in New Hampshire, especially given the state's central location in New England. Whether you plan to deliver packages locally in Manchester, Nashua, or across multiple counties, you'll need to navigate state registration, insurance, and operational requirements. This guide walks you through the exact steps and costs to launch legally.

What You'll Need Before You Start

Before diving into the legal setup, have these essentials in place:

  • Reliable vehicle(s). A van, truck, or car in good mechanical condition. Your vehicle must pass state inspection and carry valid registration.
  • Driver's license. A valid New Hampshire or out-of-state driver's license. If you plan to operate commercial vehicles over 26,000 pounds GVWR, you'll need a Commercial Driver's License (CDL), which is a federal requirement, not state-specific.
  • Business name. A name that's distinguishable from existing businesses in New Hampshire's Secretary of State database.
  • Registered agent address. A physical New Hampshire street address where legal documents can be served. This cannot be a post office box.
  • Business structure decision. Choose between a sole proprietorship, LLC, or corporation before registering.
  • Insurance documentation. Proof that you'll carry commercial auto liability insurance (not yet active, but you'll need quotes for your business plan).
  • Business bank account information. Plan to open one after registration is complete.

Step 1: Choose Your Business Structure

Your choice determines how you register with the state and how you pay taxes.

Sole Proprietorship: You operate as an individual. There's no separate state filing required. You simply report business income on your personal tax return. This is the fastest way to start, but you have no liability protection if someone is injured or damaged goods trigger a lawsuit.

LLC (Limited Liability Company): Most courier and delivery operators choose this structure. An LLC separates your personal assets from business liability. You must file a Certificate of Formation (Form LLC-1) with the New Hampshire Secretary of State, pay a $100 filing fee, and maintain a registered agent in New Hampshire. An LLC requires an annual report due April 1 each year, with a $100 fee. Late reports incur a $50 penalty.

Corporation: A C Corporation or S Corporation provides liability protection similar to an LLC, but involves more administrative overhead. You file Articles of Incorporation (Form 11) with a $100 filing fee and also require an annual report (same $100 fee, same April 1 deadline). Corporations are less common for small delivery operations because the paperwork burden outweighs the tax benefits for most sole operators.

For most new courier businesses, an LLC is the practical choice.

Step 2: Register Your Business Name

Before filing, check that your business name is available and distinguishable from existing registered businesses.

Use the New Hampshire Secretary of State business search tool to verify your name is not already taken. The name must be distinguishable from every business formed, registered, or reserved in the state, including trade names and businesses administratively dissolved within the last 120 days. Simple changes like adding articles ("The"), plurals, phonetic spellings, or abbreviations don't make a name sufficiently different.

If you want to hold the name while you finalize your business plan, you can reserve it for 120 days by filing Form 1 with a $15 fee through the Secretary of State.

Step 3: File Your Certificate of Formation (for LLCs)

File your Certificate of Formation through the New Hampshire Secretary of State online portal, NH QuickStart. This is the official filing system for business formation documents.

Filing fee: $100 for standard processing.

Processing time: Varies depending on filing volume and time of year. The Corporation Division posts its current processing date on the NH QuickStart login page announcements. If you need faster service, you can file in person at the Corporation Division Customer Lobby for an additional $25 expedited fee.

What to include in your Certificate of Formation:

  • Your LLC's name (must include "Limited Liability Company," "LLC," or a similar abbreviation)
  • The address of your registered office (the physical New Hampshire address where legal papers will be delivered)
  • The name and address of your registered agent (the person or entity authorized to receive legal documents)
  • A brief statement of the purpose of your LLC

Registered agent requirement: Every LLC must appoint and continuously maintain a registered agent. Your registered agent must be an individual, corporation, or LLC located in New Hampshire, and the registered office must be a physical street address (not a PO box). The agent must be available at that address during regular business hours. You can serve as your own registered agent if you maintain a New Hampshire office. If you close that office or move, you must file Form 10 to change your registered agent, which costs $15.

Many small operators use themselves as the registered agent. Others hire a registered agent service (typically $100 to $300 per year) to handle this responsibility professionally and maintain privacy.

Step 4: Obtain an EIN and Register for Taxes

Apply for a Federal Employer Identification Number (EIN) through the IRS, even if you have no employees. This is free and takes 15 minutes online at irs.gov/ein. You'll use this EIN to open a business bank account and file federal and state taxes.

New Hampshire has no state income tax and no sales tax on services. However, you will owe the Business Profits Tax and Business Enterprise Tax if your gross business income exceeds $109,000 annually.

Business Profits Tax (BPT): 7.5% on business organizations with more than $109,000 of gross business income in the taxable period (ending on or after December 31, 2023).

Business Enterprise Tax (BET): 0.55% on compensation, interest, and dividends paid, required only for enterprises with more than $298,000 of gross receipts or an enterprise value tax base over $298,000. (BET paid is a credit against BPT.)

If your income stays under $109,000, you won't owe these taxes, but you may still need to file. Register with the New Hampshire Department of Revenue Administration for guidance on your specific filing obligations.

Step 5: Get Commercial Auto Insurance

This is critical and non-negotiable. Personal auto insurance does not cover business use. You must obtain commercial auto liability insurance before you operate.

What to get:

  • Commercial auto liability: Typically $100,000/$300,000 minimum coverage (covers injury and property damage to others)
  • Coverage for cargo: Some insurers call this "hired and non-owned" coverage. If you're using your personal vehicle, check that your policy covers business deliveries.
  • Workers' compensation: Required by New Hampshire if you hire employees. Contact the New Hampshire Department of Labor for requirements based on your payroll.

Shop quotes from multiple carriers. Expect to pay $1,200 to $3,000 per year depending on your vehicle, driving record, and coverage limits. This is a business expense and deductible on your taxes.

Step 6: File Your Annual Report

After your LLC is registered, you must file an annual report every year by April 1. The fee is $100, and a $50 late fee applies if you file after April 1. Failure to file places your business in "Not in Good Standing" status, which can prevent you from operating legally and may complicate future lending or contracts.

File through NH QuickStart. The report is straightforward and takes 10 minutes.

Step 7: Apply for Local and Industry-Specific Permits

No general statewide business license is required in New Hampshire. However, you may need local permits depending on your city or town.

Contact your city or town clerk to ask about:

  • Local business registration or permit: Some towns require this; others do not. Fees typically range from $25 to $100.
  • Zoning approval: If you plan to operate a dispatch office or warehouse out of your home or a commercial space, confirm that the use is permitted in that zone.
  • Vehicle registration: Register your delivery vehicle(s) with the New Hampshire Department of Motor Vehicles. You'll need a commercial registration if the vehicle is used exclusively for business.

For couriers handling hazardous materials or freight: You may need additional compliance. Hazardous materials require DOT certification, which is federal. For intrastate freight, check with the New Hampshire Department of Motor Vehicles for any carrier permits.

For background-sensitive deliveries: If you plan to deliver to secured facilities (hospitals, financial institutions, government buildings), those facilities may require a background check before you enter their premises. Plan for this if it applies to your target customers.

Step 8: Open a Business Bank Account

Once your LLC is registered and you have your EIN, open a separate business bank account. This is essential for bookkeeping, tax filing, and liability separation. Bring your Certificate of Formation, EIN letter, and a photo ID to your bank.

Keep all business income and expenses in this account. Mixing personal and business money is a common mistake that complicates taxes and can expose you to liability if a lawsuit arises.

Step 9: Set Up Accounting and Track Expenses

Establish a simple system to track income and expenses. You'll need this for quarterly tax estimates (if your income exceeds the BPT threshold) and for your annual tax return.

Deductible business expenses include:

  • Vehicle fuel and maintenance
  • Commercial auto insurance premiums
  • Vehicle registration and inspection fees
  • Tolls and parking
  • GPS and tracking software
  • Communication devices and plans
  • Office supplies and uniforms
  • Marketing and advertising
  • Bank fees and LLC registration costs

Consider using accounting software (QuickBooks, FreshBooks, Wave) or hiring a CPA. The cost ($50 to $300 per month) is often worth it to avoid tax mistakes and ensure you claim all deductions.

Tips to Avoid Common Mistakes

  • Don't skip the registered agent requirement. Operating without a registered agent puts your LLC at risk of administrative suspension. Keep this current.
  • Don't mix personal and business money. Use your business bank account exclusively for business transactions. This protects your liability shield and simplifies taxes.
  • Don't operate without commercial insurance. Personal auto policies explicitly exclude business use. A single accident without proper coverage can bankrupt your business and expose you to personal liability.
  • Don't miss your April 1 annual report deadline. The $100 fee is easy to budget for. The $50 late fee and "Not in Good Standing" status are easily avoided with a calendar reminder.
  • Don't underestimate local permit requirements. Call your town clerk before you start operations. Some towns enforce local permits strictly; operating without one can result in fines or shutdown orders.
  • Don't assume all customers will pay on time. Build a cash reserve for vehicle maintenance, fuel, and insurance. Many delivery startups fail not because they lack customers, but because they run out of cash between jobs.
  • Don't ignore vehicle maintenance. Your vehicle is your business. Preventive maintenance (oil changes, tire rotation, inspections) is far cheaper than breakdowns during a delivery run.

Cost Summary: What to Budget

Item Cost When Due
LLC Certificate of Formation filing $100 At registration
Registered agent (optional professional service) $100 to $300/year Ongoing
Annual report fee $100 April 1 each year
Commercial auto insurance (annual) $1,200 to $3,000 Before operations; renew annually
Vehicle registration and inspection $75 to $200 Annually; varies by vehicle type
Local business permit (if required) $0 to $100 Varies by town
Business accounting software (monthly) $0 to $100 Ongoing

Startup total for a single-vehicle operation: $1,400 to $3,900 in the first year (excluding vehicle purchase and fuel). Most of this is insurance and annual compliance; year two costs drop to roughly $1,300 to $2,500.

Next Steps After Registration

Once your LLC is registered and insured, you're legal to operate. Your next focus areas are:

  • Build customer relationships. Reach out to local businesses, e-commerce sellers, medical offices, and law firms that need same-day or next-day delivery.
  • Set competitive rates. Research what other courier services charge in your area. Factor in your vehicle costs, time, and mileage.
  • Get online visibility. A simple website and presence on Google Maps help customers find you. Many small couriers also list on TaskRabbit or Thumbtack.
  • Track metrics. Monitor your cost per delivery, average delivery time, and customer satisfaction. Adjust your operations based on this data.
  • Plan for growth. If demand exceeds your capacity, consider hiring drivers. Consult a CPA on tax and payroll before you hire.

Legal Disclaimer

This article provides informational guidance on the formation and compliance steps for a courier and delivery business in New Hampshire. It is not legal or tax advice. Business structures, tax obligations, and licensing requirements can vary based on your specific operations, location, and customer base. Before finalizing your business plan, consult a qualified attorney and a CPA who are familiar with New Hampshire regulations and your industry. They can advise you on liability protection, tax strategy, and any industry-specific compliance you may need.

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