How to Start a Handyman Business in New Hampshire
How to Start a Handyman Business in New Hampshire
New Hampshire's straightforward business environment makes it an attractive place to launch a handyman operation. Unlike some states, New Hampshire has no personal income tax and no general statewide business license requirement for handymen. That said, you'll still need to handle basic business registration, secure the right insurance, and understand local permitting rules. This guide walks you through every step.
Why New Hampshire Is Friendly for Handyman Businesses
New Hampshire's lack of personal income tax is a genuine advantage, it means more of your take-home stays with you. The state has no franchise tax and keeps business formation fees modest. However, you will owe the Business Profits Tax (7.5%) if your gross business income exceeds $109,000 per year, and the Business Enterprise Tax (0.55%) kicks in at $298,000 of gross receipts. For most solo handymen starting out, neither tax applies immediately, but plan for them as you grow.
Choose Your Business Structure
Your first decision is whether to operate as a sole proprietor, an LLC, or a corporation. Most handymen choose either sole proprietorship or a single-member LLC.
Sole Proprietorship
This is the simplest approach: you and your business are the same legal entity. No filing required with the Secretary of State unless you operate under a business name. Your personal assets are not protected from business liabilities, which is the main downside. If you're sued over a job gone wrong, a creditor can pursue your personal savings and home.
LLC (Limited Liability Company)
An LLC protects your personal assets by creating a legal separation between you and your business. If a client is injured on a job, their lawsuit generally stops at the LLC's assets, not your personal property. This protection costs money and paperwork but is strongly recommended for a service business where injury risk exists.
In New Hampshire, an LLC costs $100 to file and requires you to appoint and maintain a registered agent, an individual or business in New Hampshire who accepts legal papers on your behalf during business hours at a physical street address (not a PO box). You can serve as your own registered agent, or hire a registered agent service for $100 to $300 per year.
Corporation
Corporations (C-corp or S-corp) are overkill for most solo handymen. They cost more to set up ($100 filing fee) and require more paperwork and formality (annual meetings, board elections). Skip this unless you're planning to hire multiple employees from day one or have an unusual tax situation.
Recommendation: Most handymen should file an LLC. The $100 filing fee and the registered agent requirement are small prices for liability protection.
Register Your LLC or Business Name
If You're Forming an LLC
File a Certificate of Formation (Form LLC-1) with the New Hampshire Secretary of State, Corporation Division. You can file online through NH QuickStart at https://quickstart.sos.nh.gov/online/Account/LandingPage.
Filing fee: $100 (plus $25 if you want expedited processing in person at the Corporation Division Customer Lobby).
Processing time: Varies by time of year. Check the current processing date on the NH QuickStart login page. Faster turnaround is available in person for an extra $25.
Name requirements: Your LLC name must include the words "limited liability company," "L.L.C.," or a similar abbreviation. It must be distinguishable from every other business name registered or formed with the Secretary of State, including trade names and dissolved businesses within the last 120 days. Generic additions like "Inc." or plural forms alone don't make a name sufficiently different.
Before filing, search existing business names for free at https://quickstart.sos.nh.gov/online/BusinessInquire. If your preferred name is taken, you can reserve it for 120 days by filing a Name Reservation request (Form 1) for a $15 fee.
If You're Operating Under a Trade Name
If you're a sole proprietor operating under a business name (e.g., "Blue Collar Home Solutions" instead of your legal name), you must register it as a trade name with the Secretary of State, Corporation Division under RSA 349.
Filing fee: $50 to register, plus $2 electronic handling charge if you file online. Renewal is $50 every year (or however frequently your state requires, confirm with the SOS office). Trade name information changes are free.
Where to file: Online at NH QuickStart or by mail. See the full details at https://www.sos.nh.gov/corporations-0/forms-and-fees/trade-names.
Appoint a Registered Agent
If you've formed an LLC (or corporation), New Hampshire requires you to appoint and continuously maintain a registered agent. The agent is a person or business that accepts legal papers on your behalf. They must be located in New Hampshire at a physical street address, available during regular business hours, and cannot be a post office box.
You can serve as your own registered agent if you're in New Hampshire and available during business hours. Otherwise, hire a registered agent service. Changing your registered agent or address requires filing Form 10 with a $15 fee.
Failure to maintain a registered agent can lead to administrative suspension or dissolution of your LLC.
Understand Licensing and Permitting
General Handyman Work
New Hampshire does not require a state-level handyman license for general repair and maintenance work. You can legally perform tasks like painting, drywall patching, deck building, light carpentry, and similar work without a state license.
Specialized Trades
If your work includes electrical, plumbing, HVAC, roofing, or other licensed trades, you'll need the appropriate state license from the Office of Professional Licensure and Certification (OPLC). Visit https://www.oplc.nh.gov/professional-licensing to see which trades require licensing in your specialty.
Local Permits
Most handyman jobs don't require a permit. However, jobs involving electrical work, plumbing, structural changes, or work on certain building systems may need a permit from your city or town. Contractors performing work on homes must comply with local building codes, and inspectors may require permits on jobs above certain thresholds.
Contact your city or town clerk's office or the local code enforcement officer to confirm permitting rules for the specific work you'll be doing. Many towns allow handymen to pull permits on behalf of homeowners.
Get Business Liability Insurance
Business liability insurance is not legally required in New Hampshire, but it is essential. If a client is injured on a job, or if your work causes property damage, insurance protects you from catastrophic financial loss. Without it, you'll personally liable for medical bills, repairs, and legal fees.
Typical handyman liability insurance costs $400 to $1,000 per year, depending on your coverage limits, experience, and claims history. Many general contractors and insurance brokers specialize in this coverage. Some insurers also offer additional coverage for tools and equipment.
If you hire employees, you'll also need workers' compensation insurance. If you have a vehicle dedicated to the business, you'll need commercial auto insurance. Discuss all of these with your insurance agent before your first job.
Register for Taxes
Federal EIN
Even if you're a sole proprietor, you may want an Employer Identification Number (EIN) from the IRS. It's free and takes just a few minutes to apply online at https://www.irs.gov. An EIN lets you separate your business and personal finances, build business credit, and avoid using your Social Security number on invoices.
New Hampshire Business Profits Tax (BPT)
If your gross business income exceeds $109,000 in a tax year, you must file the Business Profits Tax return with the New Hampshire Department of Revenue Administration. The tax rate is 7.5%. File through the department's Granite Tax Connect portal at https://gtc.revenue.nh.gov/TAP/_/.
Business Enterprise Tax (BET)
The Business Enterprise Tax applies if your gross receipts exceed $298,000 or your enterprise value exceeds $298,000. The rate is 0.55%. Any BET you pay is a credit against your BPT, so you never pay both in full. File it alongside your BPT if applicable.
No Sales Tax
New Hampshire has no sales tax, which simplifies your accounting. You don't need to collect or remit sales tax on services or products.
Federal and State Payroll
If you hire employees, you'll need to withhold federal and state income taxes, pay payroll taxes, and file quarterly reports. An accountant or payroll service can handle this for you.
For details, visit the New Hampshire Department of Revenue Administration at https://www.revenue.nh.gov/.
Set Up Banking and Accounting
Open a separate business bank account in your LLC's name (or your business name if you're a sole proprietor). Keeping business and personal money separate makes accounting easier, supports your liability protection, and simplifies tax filing.
Use accounting software (QuickBooks, Wave, or FreshBooks are popular among contractors) to track income and expenses. This records are essential for tax filing and help you understand your profitability.
Common Mistakes to Avoid
- Skipping the LLC: Operating as a sole proprietor puts your personal assets at risk. An LLC costs $100 and takes 15 minutes to file online, it's worth it.
- Forgetting insurance: One lawsuit can wipe out a year of profit. Don't start jobs without liability coverage in place.
- Mixing personal and business finances: Using a personal account makes your LLC protection fragile. Open a business bank account immediately.
- Ignoring local permits: A client can report unpermitted work, and you could be fined. When in doubt, contact the local code office.
- Underestimating taxes: If your income crosses $109,000, the Business Profits Tax is owed. Set aside 8-10% of income for taxes or you'll face a bill at year-end.
- Operating without a written contract: Always have a scope of work, timeline, and price in writing before starting a job.
Your First Steps: A Checklist
- Decide on sole proprietor, LLC, or corporation (LLC recommended).
- Search business names at https://quickstart.sos.nh.gov/online/BusinessInquire.
- File your LLC or trade name registration through NH QuickStart ($100 LLC plus $25 expedited, or $52 trade name).
- Appoint a registered agent (can be you).
- Research local permitting rules with your town clerk.
- Get business liability insurance ($400 to $1,000 per year).
- Apply for an EIN from the IRS (free).
- Open a business bank account.
- Set up accounting software.
- Draft a standard work agreement and invoice template.
Professional Guidance
This article provides informational guidance on New Hampshire business formation requirements and is not legal or tax advice. Handyman businesses vary in scope and risk profile. Before starting, consult with a qualified attorney or CPA who knows New Hampshire law. An attorney can review your contracts, confirm permitting rules for your specific service area, and advise on liability. A CPA can set up your accounting system, estimate your tax obligations, and help you plan for growth.
The New Hampshire Small Business Development Center at https://www.nhsbdc.org/ also offers free and low-cost consulting for startups.
Ready to Launch
Starting a handyman business in New Hampshire is straightforward once you know the steps. Form your LLC, secure insurance, handle the basic tax registration, and you're ready to bid on jobs. The lack of sales tax and personal income tax means more money stays in your pocket as you build. Focus on quality work, satisfied clients, and clear contracts, and you'll have a solid foundation for growth.