Secretary of State hails bill that cracks down on corporate fraudsters

Secretary of State David Scanlan (Courtesy photo)

CONCORD - The Secretary of State's Office is applauding Governor Ayotte signing of HB 406, which directly addresses nationwide concerns of fraudulent activity targeting small businesses. The bill was requested by and crafted with extensive feedback from the Secretary of State's Corporations Division.

One of the Secretary of State's priorities is to create a more comprehensive plan to fight business fraud and protect New Hampshire residents, particularly small businesses, according a release sent our Wednesday. HB 406 tackles this growing threat head on by enabling the Secretary of State to verify and prevent fraudulent business formations and create penalties for individuals who fraudulently formulate businesses.

Under the new law, businesses or individuals who suspect their identity or business information has been used to form a fraudulent business entity or who suspect that an unauthorized party has submitted changes to their own business information can submit a sworn statement to the Secretary of State. This allows the Secretary of State to take immediate action to address possible fraud. Prior to the passage of HB 406, this process would take four to six months.

In addition, the bill requires more qualifications for registered agents, who receive legal correspondence on behalf of New Hampshire businesses. Under HB 406, individuals serving as registered agents must be New Hampshire residents and provide the Corporations Division with a physical address of where they work or live.

"After working closely with legislators, the Secretary of State can provide greater protections for small businesses in New Hampshire grappling with the nationwide trend of business fraud, said David Scanlan, Secretary of State. "I thank Representative Luz Bay for sponsoring the legislation and Governor Ayotte for signing this vital bill into law."

The new law takes effect on January 1, 2026.

New Hampshire residents who believe their businesses have been affected by fraudulent activity should contact the Secretary of State's Corporations Division at (603) 271-3244 or corporate@sos.nh.gov.