Saturday, January 30, 2010

Ask the Expert - Submit your questions

Starting in February and once each month thereafter, you will have the opportunity for your questions to be answered by an expert in a topic of interest to New Hampshire landlords.

Attorney Fred Mayer has graciously offered to be our first expert. Attorney Mayer is well known in the landlord community as one of the experts in NH Landlord Tenant Laws. He has agreed to answer up to 10 questions submitted by our members regarding NH Landlord-Tenant Laws.

Our plan is to have Attorney Mayer's responses posted on this blog on March 1st. In order to meet this date, please send your questions to no later than February 13th. Now is your chance to obtain legal advice.
Future Ask the Expert columns will include experts in lead abatement, tenant screening, how to protect your assets, how to get financing during tough economic times, the current state of the rental market in NH, new laws that affect landlord in NH and much more.

If anyone has suggestions for future topics, please feel free to send us an email.

Again - email your questions to no later than February 13th in order for your question to be included in March.

Friday, January 22, 2010

Some New Hampshire LLCs May See Higher Tax Bills

Some New Hampshire Small Business May See Higher Tax Bills

As part of the budget negotiations, state lawmakers are considering a proposal to close a tax loophole that Limited Liability Companies have enjoyed.

An LLC is just one way to organize as a small business, but it’s become increasingly popular.
One of the reasons is that an LLC’s income is not taxed the same way as other companies.
But that’s likely to change, as NHPR’s David Darman reports.

Revenue Commissioner Kevin Clougherty told lawmakers working on the state budget that limited liability companies, or LLC’s were getting a bit of free ride on taxes.

Clougherty said small businesses can be organized as LLC’s, or more traditionally as what’s called an S corporation, or S corp.

And there’s a definite difference in what the two groups pay in taxes.

The s corp directors, when they receive a dividend what happens is they are paying the business taxes and the interest and dividend tax. The LLCs are paying the business tax but not an interest and dividends tax, so there’s a decided advantage.

Currently the interest and dividends tax is 5%, and under the proposal any income an LLC owner receives would be considered a dividend.

About 10,000 businesses in the state are registered as LLCs.

Officials say it’s the fastest growing category of business organization in New Hampshire.
For example, Lotions and Potions on Concord’s Main Street is an LLC that has been open several years.

Co-owner Andrew Hatch says he organized the store as an LLC because it was simpler.
It’s certainly less complicated and more importantly less expensive to become an LLC.
Another benefit of the LLC is that it shields the owner’s personal fortune from liability in the event of losses.

Hatch says taxes were the furthest thing from his mind when he organized as an LLC.
It certainly wasn’t a decision I took in order to avoid or work around any tax structures.
Much of New Hampshire’s business community has reacted negatively to the proposal to further tax LLCs.

The Business and Industry Association, or BIA has said the proposal would be a “double tax” on small businesses.

They argue LLC owners already pay the Business and Enterprise tax, or BET, which covers payrolls and other compensation.

Tax adviser Bill Ardinger says the proposal will also make the tax burden on LLC’s much too heavy.

This proposal could result in a total effective tax rate on business earnings from a small business at 13 and half percent. That’s the state alone. We would be the highest tax rate on small businesses in the country.

Opponents of the proposal say that high tax rate would make New Hampshire much less attractive for small businesses to locate here.

But state Revenue Commissioner Kevin Clougherty says the tax burden argument is baseless.
That’s exactly what our corporations are paying now on the other side. So we’re not I’m not trying to deal with..the issue of the rate. I’m trying to say there’s an equity issue here. Everybody should be the same.

Clougherty says he’s pursuing equity for another reason as well.
He says the inequities worry him from a legal angle.

I’m very concerned about our liability if we’re not treating everybody fairly. Because just as much as you may get the argument from the LLC side saying well, you’re not taking into consideration the value I bring to this entity, you’re going to get the same arguments from the people on the other side and they’re getting taxed.

Should the proposal end up in the budget, it could mean an additional 15 to 20 million dollars a year in state revenue.

There wasn’t much discussion of the matter among the budget writers.

So don’t be surprised if this proposal closes the loophole LLCs have enjoyed.

Thursday, January 21, 2010

Rental Property Advice : How to Be a Good Landlord

Rental Property Advice : How to Be a Good Landlord

CHAPTER 540 Actions against Tenants

NH - Chapter 540 Actions against tenants

What are my rights as a landlord when there are bedbugs in the building?

Landlord News - Quarter 1 2010

Landlord News - Quarter 1 2010



These are VERY IMPORTANT issues that shouldn't be ignored. IT IS YOUR RESPONSIBILITY TO BE INFORMED!!For detailed information about these issues, visit our website at

SincerelyJeannine Richardson, PresidentLandlord Connection, Inc.
Tax Workshop for business people

You and your guest are invited to a
Free Tax Workshop
Monday January 25th 2010
7:00 to 9:00 PM
50 Queen City Ave. Community room
Manchester, N.H.
Hosted by Freedom Enterprises LLC
Call 888-695-0621 to reserve your seat.
Leave # of people attending, your Name and E-mail address and phone number.
For all business owners and will be owners.

Come learn:
Record keeping
New tax law changes
Reducing you taxes
Stream line your business
Business entities, Sole-Proprietor's, LLC, FLP, S-Corp, C-Corp ?
Reducing my cost and increase my bottom line
Thank You;Rick Blais(603)641-2527