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NH Limits Interest Rates for Title Loan and Payday Loan Companies

admin — Fri, 11 Dec 2009 15:58:29 +0000

Payday Loan companies are now prohibited from charging excessive interest rates to consumers.

Legislation, which went into effect on Jan. 1, 2009, will most likely put the payday loan industry out of business in New Hampshire. HB-267 limits the annual percentage rate on a payday and title loans to no more than 36 percent per year.

Payday loans are short term loans (usually a week or two) of $300 to $500, secured with a pay stub and paid back with a flat fee that translates to an annual interest rate in the hundreds. Title loans require the borrower’s car as collateral.

Lawmakers found that the rates of interest charged by many title loan lenders and payday lenders are unreasonable and predatory. Some Title loan lenders charge rates of up to 350%, and payday lenders were charging up to 1,000%.

Supporters said that payday lenders target vulnerable people and make it difficult for them to climb out of debt because the interest rates are so high that borrowers have to take out a second loan to pay off the first one.

The Act also prohibits lenders from giving payday or title loans to any borrower who has had such a loan in the previous 60 days.

For more information, contact Attorney Chris Ratté.

NOTICE: The information and articles posted on this website are for informational purposes only and are not intended as legal advice. Contact me to discuss your particular situation or consult a licensed attorney in your state.

NH Retailers Not Required to Enforce Sales or Use Tax Collection for States Outside NH

admin — Fri, 04 Dec 2009 15:52:06 +0000

NH Says No to Mass. Sales and Use Tax

When the State of Massachusetts attempted to collect sales and use tax from a NH retailer for purchases within NH, the Governor and Legislature acted quickly to put a stop to it.

In response to this claim by Mass. against Town Faire Tire, NH enacted SB-5 prohibiting retailers from disclosing private customer information to foreign states in connection with the collection of certain sales and use taxes.

Gov. John Lynch called the Mass. claim “outrageous” and “unacceptable.”

“We should not allow Massachusetts to turn New Hampshire businesses into tax agents for Massachusetts.” – Gov. John Lynch

The Act creates an irrebutable presumption that, in the absence of voluntary information by the customer, the goods or services purchased in NH are intended to be used in NH.

To impose sales or use tax on purchases within NH, the foreign state must have previously provided written proof to the retailer that its tax laws meet with the very stringent requirements of the new Act. That is unlikely.

Gov. Lynch has vowed to appeal the Town Faire Tire case to Federal Court if necessary to protect NH’s favorable tax structure and pro-business environment.

For more information, contact Attorney Chris Ratté.

NH Enacts WARN Act in Response to Recent Mass Layoffs and Plant Closures

admin — Fri, 27 Nov 2009 15:47:57 +0000

NH Workers will receive more advance notice of mass layoffs and plant closures than required by federal law.

In response to some highly publicized and very sudden plant closures and mass layoffs that have plagued NH lately, the legislature enacted the NH Worker Adjustment and Retraining Notification Act (NH WARN).

SB-40 is based on the Federal WARN Act, but increases the number of employers who are subject to the Act and substantially increases the penalties for employers who do not comply with the notice requirements in the Act.

Both WARN Acts require 60 day notice to employees of any plant closure or mass layoffs subject to the Act, but NH has lowered the required number of affected employees from 50 employees being laid off to 25 (provided it is at least 1/3 of the full-time non-seasonal employees).

NH has also increased the number of employers subject to the Act by lowering the threshold from employers with at least 100 employees to 75. The NH WARN Act is estimated to affect some 300 more employers than the Federal Act.

An employer who fails to give notice of a mass layoff or plant closing, as required by this law, can be assessed a civil penalty of up to $2,500 and up to $100 per employee for each day of noncompliance, plus costs and attorneys fees. In addition, the NH Department of Labor is also permitted to place a lien on the employer’s revenues as well as all real and personal property of the employer to pay these assessments.

There are some narrow exceptions to the Act, most notably, a faltering employer who was actively seeking capital to avoid such layoffs and in good faith believed that notice of layoffs would preclude that capital investment.

For more information, contact Attorney Chris Ratté.

NH Creates HealthFirst as an Affordable Wellness-Based Health Insurance Plan for Small Business

admin — Fri, 13 Nov 2009 15:36:06 +0000

HealthFirst Plans for small business began on October 1, 2009.

In these tough economic times, many small businesses are facing decisions about severely limiting health insurance coverage, or dropping coverage all together.

Recognizing that small businesses are the backbone of NH’s economy, and therefore a critical link in our health care system, NH enacted HealthFirst, an affordable, wellness-based health insurance plan for small employers.

“We set out to give small businesses and their workers a more affordable health care choice.” – Gov. John Lynch

HealthFirst is aimed to be comparable to the most popular, comprehensive health insurance plans for small businesses with an average 15 to 20 percent lower cost. The target rates are to be no more than 10% of the median income in the prior year, but will be rated based on risk like other health insurance rates.

In addition to providing a lower-cost alternative for small businesses of 50 or fewer employers, HealthFirst also focuses on keeping people healthy, which will help reduce the state’s overall health care costs. The plan calls for annual financial incentives for enrollees to quit smoking, maintain a healthy weight and participate in health management plans for chronic illnesses.

Starting Oct. 1, 2009, Anthem, Cigna, Harvard Pilgrim and MVP began offering NH HealthFirst Plans for small employers.

For more information, contact Attorney Chris Ratté.

How NH’s Same-Sex Marriage Law Will Affect Your Business

admin — Fri, 06 Nov 2009 15:24:33 +0000

NH employers must provide state mandated spousal benefits for same-sex couples.

NH recently became the 6th state in the U.S. (5th in New England) to enact a same-sex marriage law. Although NH has had civil unions since 2007, the amended law does away with the civil union concept and defines marriage as “the legally recognized union of 2 people… regardless of gender.”

Civil unions will be fazed out on Jan. 1, 2011, and at that time automatically be converted to marriages.

If your business made changes to its HR policies to comply with the civil union law, then not much will change for you.

Both the civil union law and the gay marriage law provide to same-sex unions all the same rights and benefits provided to married couples under state law. These benefits include such things as workers compensation and bereavement leave.

Federally created rights, however, are a different story.

The federal Defense of Marriage Act of 1996 (DOMA), prohibited the extension of any federal benefits allowed to married couples to same-sex couples. Because of this, the passing of gay marriage in NH will not change any employer requirements under federal law for same-sex spouses, such as requirements of federal tax laws, ERISA, COBRA, the Family and Medical Leave Act, or social security benefits.

DOMA also permits other states to decline to recognize NH’s same-sex marriages.

After signing the Bill, Gov. Lynch expressed support for changing the federal marriage law to allow gay marriages.

NH’s law against discrimination, RSA 354-A, prohibits discrimination in employment because of someone’s sexual orientation or perceived sexual orientation. Sexual orientation was added to the Act in 1998.

For more information, contact Attorney Chris Ratté.

NH Small Claims Jurisdiction Increased to $7,500; A quick, low cost alternative to collect business debts.

admin — Fri, 30 Oct 2009 15:18:39 +0000

Small Claims Court is an often overlooked tool for small businesses.

New Hampshire HB-281 increases the maximum amount of damages that may be claimed in Small Claims Court to $7,500.

Originally established as a simple, speedy and informal process for lay people to resolve small disputes, the Small Claims procedure can be a useful tool for businesses to efficiently collect smaller business debts.

Businesses often have unpaid invoices and other small uncollected debts, but decide not to pursue collection due to the cost and time involved in bringing a lawsuit. The Small Claims docket allows for a much cheaper and quicker method to collect such debts in lieu of the standard civil dockets in the District and Superior Courts.

Filing fees are about half of those in the District Court and claimants can get a trial date in a few months rather than upwards of a year or more.

HB-281 also mandates mediation for claims over $5,000.

For more information, contact Attorney Chris Ratté.

Business and Commercial Dispute Docket Established in NH Superior Court

admin — Fri, 23 Oct 2009 15:14:26 +0000

NH’s Business Court Docket aims to speed up litigation of complex commercial disputes.

New Hampshire has now followed other states in the creation of its first ever specialized “Business Court.”

Enacted in 2008, SB-378 creates a separate Business and Commercial Dispute Docket within the Superior Court. The aim of the new Business Docket is to alleviate overcrowded court systems by providing more efficient and specialized procedures for complex commercial disputes.

Currently, commercial disputes are part of the standard civil docket and are heard by the same judges who also hear other civil, equitable and criminal matters. The effect is that the docket becomes clogged with large complex commercial disputes involving massive volumes of paper and electronic discovery.

The new Business Docket should make commercial litigation more efficient and cost-effective, while freeing up court resources for other matters as well.

In order to be assigned to the new Business Docket, cases must meet the following criteria: (1) the parties must consent to the jurisdiction of the Docket by agreement; (2) at least one party must be a “business entity” as defined by the statute; (3) no party may be a “consumer,” defined as “an individual who purchases or leases merchandise primarily for personal, family or household purposes;” and (4) money damages, if sought, must exceed $50,000.

The Act provides a list of the types of cases which may be heard in the Business Docket, including: claims of breach of contract, fraud, misrepresentation and business torts; claims under the Uniform Commercial Code; franchise disputes; shareholder derivative suits; corporate dissolution or liquidation; and other complex disputes of a business nature.

Attorney Richard McNamara, of Manchester, was recently approved by the Executive Council after being nominated by Gov. Lynch to serve as the first Justice of the NH Business and Commercial Dispute Docket. Attorney McNamara is an experienced commercial litigator who made a name for himself representing auto dealers in several high-profile disputes with manufacturers.

For more information, contact Attorney Chris Ratté.

New Laws Affecting NH Business Owners

admin — Wed, 21 Oct 2009 03:42:43 +0000

UPDATE – On Tuesday, November 3rd, I will be giving a condensed version of my presentation about recent legislation affecting NH businesses. So if you missed the original presentation, you have one more chance to learn how these new laws may affect your business. Here are the details:

Program: Upcoming Legislation Affecting NH Businesses

Date: Tuesday, November 3, 2009, 11:30-1:00

Location: ReMax Coast to Coast Realty, 150 Mirona Road, Portsmouth, NH

Cost: Free

On Friday, October 23rd, I will be giving a presentation on recent legislative changes affecting small businesses in New Hampshire. This should be an informative and interesting program for all NH business owners and managers. I hope to see you there. Details are below.

Program: Upcoming Legislation Affecting NH Businesses

Date: Friday, October 23, 2009, 8-9 am

Location: IOS, Pease International Tradeport,1 New Hampshire Ave., Rm. 300, Portsmouth, NH

Cost: $10

RSVP: Diane DeVries 603-534-2040 or diane@digrafika.com

THE POWER OF CHOICE: How to Choose the Proper Business Structure

admin — Wed, 08 Jul 2009 16:13:48 +0000

Choosing the right business entity structure may seem like any easy step in setting up a new business, but the wrong choice can be very costly. Each form of business structure has its own advantages and disadvantages, and each has its own rules and requirements. Choosing the right one is an important choice based upon the particular operation and goals of each individual business.

The five major business forms are sole proprietorship, general partnership, limited partnership, limited liability company, and corporation, which may then be classified as either a “C-Corp.” or an “S-Corp.”

Sole Proprietorship – This is the default business form of any single person doing business who has not taken steps to set up any formal business structure. A sole proprietor is personally responsible for all debts and liabilities of the business. Income is taxed directly to the individual owner on his or her personal income tax return. A sole proprietor may operate under a trade name other his or her own name, often called a “dba” which stands for “doing business as.”

General Partnership – This is the default business form of any business consisting of more than one person, which has not taken steps to set up any formal business structure. Each individual partner is personally responsible for the debts and liabilities of the partnership, even if it was incurred by a fellow partner without his or her consent. Income is taxed to the individual partners’ income tax return in proportion to their ownership interest in the partnership. General partnerships often operate under a Partnership Agreement, which sets forth the rights and responsibilities between the partners.

Limited Partnerships – Unlike general partnerships, limited partnerships are created by filing Articles of Formation with the local Secretary of State’s Office. Limited partnerships are operated by one or more general partners, with one or more limited partners who are essentially passive investors. The general partners are responsible for all of the debts and liabilities of the limited partnerships. In contrast, the limited partners are only responsible for business debts and liabilities up to the value of their interest in the limited partnership. As a tradeoff, limited partners have no say in how the business is run by the general partners. Limited Partnerships are governed a Limited Partnership Agreement. Like a general partnership, income is taxed to the individual partners in proportion to the ownership interest in the limited partnership.

Limited Liability Corporation – An LLC is the newest and most flexible form of the major business structures. LLC’s are created by filing Articles of Formation and are governed by an LLC Operating Agreement. The owners of an LLC are called members, and like the name implies, the members’ liability for business debts is limited to the value of their ownership interest in the LLC. The individual members are not personally liable for the acts of their fellow members like general partners would be. LLC’s may be operated by one or more managers, who may or may not be members of the LLC. LLC’s may be taxed as a “pass-through” entity, meaning income passes through the LLC to the individual owners like a partnership, or the LLC may be taxed on the entity level like a corporation. LLC’s must file business tax returns, annual reports and other requirements.

Corporation – A corporation is the oldest and most popular of the formal business structures. It is created by filing Articles of Incorporation with the Secretary of State and is governed by its By-Laws. Liability of the shareholders is limited to the value of the stock that they own in the corporation. Corporations may be privately held or publicly traded on national and international stock exchanges. Corporations may be classified for tax purposes as either a “C-Corp.” or an “S-Corp.” All corporations are automatically considered to be a C-Corp. unless they elect to be treated as an S-Corp. under Subchapter S of the Internal Revenue Code (hence the name). There are restrictions in the Code that sets forth which corporations qualify for S-Corp. treatment. A qualifying S-Corp. will be taxed as a “pass-through” entity like a partnership. A standard C-Corp. on the other hand will be taxed first on the corporate entity level, then again on the personal level for any distributions received by the individual shareholders. Corporations must file business tax returns, annual reports and other requirements.

For a free half hour consultation about which business structure may be right for you, contact Attorney Christopher E. Ratté.