Setting Up a Manufacturing Relationship in New Hampshire

In New Hampshire, you can choose from several business structures including sole proprietorship, partnership, LLC, or corporation. LLCs are popular for manufacturing businesses as they provide liability protection while maintaining tax flexibility. New Hampshire has no personal income tax, but does have a Business Profits Tax and Business Enterprise Tax to consider. You'll need to register your business with the NH Secretary of State and obtain any necessary permits specific to manufacturing operations.

Manufacturing businesses in New Hampshire typically require: 1) Business registration with the Secretary of State, 2) Environmental permits from the NH Department of Environmental Services if your operations involve emissions, waste disposal, or water usage, 3) Local zoning approvals and building permits, 4) Fire safety inspections, 5) Industry-specific permits depending on what you're manufacturing, and 6) Federal permits if applicable to your industry. Contact the NH Business One-Stop Resource Center for guidance specific to your manufacturing type.

New Hampshire follows federal minimum wage ($7.25/hour) and has specific regulations regarding overtime, workplace safety, and workers' compensation. Manufacturers must comply with NH's Youth Employment Law for workers under 18, provide unemployment insurance, and follow the state's at-will employment provisions. New Hampshire is not a right-to-work state, so union considerations may apply. The state also has specific safety regulations for manufacturing environments that are enforced by both state agencies and OSHA.

To protect intellectual property in a New Hampshire manufacturing relationship: 1) Use comprehensive written contracts with confidentiality provisions, 2) Include non-disclosure agreements (NDAs) with all partners and employees, 3) Consider filing for patents, trademarks, or copyrights as appropriate, 4) Implement physical and digital security measures at your facility, 5) Clearly define ownership of new IP developed during the relationship, and 6) Include non-compete clauses where appropriate (note that NH generally enforces reasonable non-compete agreements).

New Hampshire has strict environmental regulations for manufacturers. You'll likely need permits from the NH Department of Environmental Services for air emissions, wastewater discharge, and waste management. The state follows federal EPA guidelines but may have additional requirements. Manufacturers must also comply with the NH Hazardous Waste Rules, which can be more stringent than federal standards. Consider consulting with an environmental compliance specialist familiar with New Hampshire regulations to ensure your manufacturing processes meet all requirements.

New Hampshire has no sales tax or personal income tax, which is advantageous for business owners. However, manufacturers must pay the Business Profits Tax (BPT) currently at 7.6% and the Business Enterprise Tax (BET) at 0.55% on enterprise value. Manufacturing equipment may qualify for certain tax exemptions. The state also offers various tax credits and incentives for manufacturers, including the Research and Development Tax Credit and Economic Revitalization Zone Tax Credits in qualifying areas. Consult with a tax professional familiar with NH business taxation.

A comprehensive manufacturing contract in New Hampshire should include: 1) Detailed specifications for products and quality standards, 2) Clear pricing terms and payment schedules, 3) Production timelines and delivery requirements, 4) Intellectual property ownership provisions, 5) Confidentiality clauses, 6) Warranty terms and liability limitations, 7) Dispute resolution procedures (New Hampshire courts generally enforce arbitration clauses), 8) Termination conditions, 9) Force majeure provisions, and 10) Choice of law provisions (specifying New Hampshire law). Have the contract reviewed by an attorney familiar with New Hampshire commercial law.

While New Hampshire doesn't mandate specific insurance types for all manufacturers, you should consider: 1) Workers' compensation insurance (required for businesses with employees), 2) General liability insurance, 3) Product liability insurance (especially important for manufacturers), 4) Property insurance, 5) Business interruption insurance, and 6) Environmental liability insurance if working with hazardous materials. Some industry-specific insurance may be required depending on what you manufacture. Work with an insurance broker familiar with manufacturing risks in New Hampshire.

To manage product liability risks in New Hampshire: 1) Implement rigorous quality control processes, 2) Maintain detailed documentation of design, testing, and manufacturing procedures, 3) Create clear warning labels and user instructions, 4) Obtain adequate product liability insurance, 5) Consider forming an LLC or corporation to limit personal liability, 6) Include appropriate warranty disclaimers and liability limitations in contracts and product documentation (while complying with NH consumer protection laws), and 7) Establish a product recall plan. New Hampshire follows strict liability principles for defective products, so prevention is essential.