Are you a young adult in New Hampshire searching for a career outside of the office and clear of the cubicle? Does the very notion of reporting to a boss make you unsettled? If so, you’ve probably at least considered leaving it all behind and launching a small business.
If the all-consuming nature of such an undertaking has prevented you from moving beyond a “maybe” in your decision making process, then a recently released report regarding our state’s business climate just may be the evidence needed to convince you that now is the perfect time and New Hampshire is the perfect place to go out on your own.
The 2019 State Business Tax Climate Index circulated by the Tax Foundation paints the Granite State favorably for those who see their future as an open canvas of small business opportunities. Coming in the top ten (or six to be exact), New Hampshire and its lack of income or sales tax renders enormous advantages over the overwhelming majority of other states. They explain in part their methodology:
The absence of a major tax is a common factor among many of the top 10 states. Property taxes and unemployment insurance taxes are levied in every state, but there are several states that do without one or more of the major taxes: the corporate income tax, the individual income tax, or the sales tax.
And why are tax rates so important to business success? On our own website we point out that “the overall tax burden as a percentage of income is 7.6% for NH and 9.5% for MA, 10.2 % in RI, 10.3% in VT and 11.1% in CT. The lack of an income tax in NH contributes significantly to this statistic and to the money that you can put back into your business or into your wallet.”
Are you still a maybe?
Well if facts about the business climate altogether don’t persuade you about the potential viability of your enterprise, then consider the staggering number of small businesses throughout New Hampshire that have already done it. Here, the small businesses number is 133,676, which according to the 2018 U.S. Small Business Administration’s fact sheet comprises 99% of the overall businesses in the state and 50% of its employees in the process. If 100,000+ other Granite-Staters could do it, then why can’t you?
I’m not saying it will be easy. I can think of 6 reasons off the top of my head that will render the project a difficult one. But then I think about how 6 is also the position out of 50 that New Hampshire ranks for business tax climate and suddenly I’m feeling more confident.