As you look over your company’s financial projections for the year, one of the bigger line items is how much you have to pay in taxes to store items. You will always need warehouse space to keep your business running, but where the warehouse is located today might not make sense for your business plans for tomorrow.
Perhaps it’s time to make a change, with a new warehouse that lets you keep more of your money for the same storage services.
Many companies in the startup phase who have little experience in warehousing will begin with one third-party logistics business, only to discover over time that the deal is not the best, from a financial perspective. One solution is to work with a warehouse company in a tax-free state.
Only 7 states in the United States do not charge residents income tax and a mere 5 have no sales tax. Fortunately for businesses with an eye to reducing costs, New Hampshire falls into both categories.
Read on for insight into how you can be more profitable by working with a 3PL business based in the tax-free state of New Hampshire.
New Hampshire for Warehousing
A great reason to store your company’s goods in a warehouse in New Hampshire is financing. As Newsday put it, “The Granite State has no sales tax and doesn’t tax earned income.”
Its location on the East Coast is a strategic advantage for many businesses looking to quickly distribute their items.
The state has a relatively small government, per the Cato Institute, which ranks the state #2 in its Freedom in the 50 States report (for comparison, Vermont is #46 and Maine is #39).
Cato’s report described a discussion with New Hampshire Governor Chris Sununu, who said, “It is no surprise that people are fleeing high‐tax states across the country and coming to the Live Free or Die State. We have no income tax, we have no sales tax, we have a high quality of life. This is what we call the New Hampshire Advantage.”
(For context, “Live Free or Die” is the state’s official motto, while the “Granite State” is New Hampshire’s nickname.)
Free State Project Weighs In
The Free State Project keeps track of which states are the most amenable to the least restrictions, in pursuit of liberty. It notes, “The Granite State consistently ranks among the best and freest states in the nation.”
FSP describes New Hampshire as a place where residents flourish thanks to a strong economy and zero sales tax or income tax. It may turn out to be the perfect place for your company to relocate its warehousing.
Learn More About the Economic Advantage of Warehousing in New Hampshire
The financial benefit of warehousing your goods with American Warehouse, Inc. is clear thanks to the tax-free advantage of us being located in New Hampshire. But fellow stakeholders in your organization may need more information first, before making a switch. Find out more about the cost savings of warehousing in New Hampshire by connecting with American Warehouse, Inc. today.