We are “The Granite State” bound this week in our 50 states of incorporation series on New Hampshire! For those looking to form an LLC or incorporate in New Hampshire, Thumbtack.com has nothing but rave reviews on the state – it nabs an A+ in overall friendliness, ease of starting a business and hiring, health and safety, and tax code.
Infamous for being the birthplace of the Free State Project (which works to educate people on the advantages that come with living in the state) as well as internationally for the New Hampshire Primary in the election cycle, New Hampshire ranks as #31 on Forbes Best States for Business list.
Why so middle ground based for a state giving flying colors to do business in? New Hampshire holds a low unemployment rate, but also suffers from expensive energy and labor costs. As far as taxes go, New Hampshire has no sales tax or income tax reported on an individual’s reported W-2 wages. However, the state does have a controversial property tax, which according to former state senator Jackie Cilley, was noted in 2012 as having the third-highest property taxes in the nation.
Although federal taxes are not dependent upon where you live in the United States, there are some drastic differences between how states collect taxes from their citizens – considering the different rates they tax for income, property, luxury goods, and even common necessities such as food and clothing. If you have flexibility about where you live, perhaps it is worth it to move to a state with lower taxation rates in categories that apply to you and your family.
If you haven’t heard- the 42 state lotto, Mega Millions is over half a billion dollars. Since we’re finishing out tax season we thought it would be good to highlight one last tax post. We’ll discuss the taxes on your lotto winnings, as well as gross income generally.
If you are from New Hampshire, Tennessee, Texas, South Dakota, Washington, California, Pennsylvania or Delaware you will win the biggest in tonight’s drawing- winning between 3% and 9% more than if you were from any other state because you won’t have to pay state income taxes. However, all winners must count the winnings as income and are subject to the Federal income tax of 35% (or maybe more depending on your specific situation). Continue reading