New Hampshire is famous for having no general sales tax and no income tax on wages, which draws businesses and residents from across New England. Forming an LLC costs $100, and the annual report costs $100. But New Hampshire does tax businesses, through its Business Profits Tax and Business Enterprise Tax, once they pass certain thresholds. Here’s the full picture.
What a New Hampshire LLC costs
Table of Contents
| Item | Cost | When |
|---|---|---|
| Certificate of Formation | $100 (about $102 online) | At formation |
| Annual report | $100 | By April 1, from the year after formation |
| Late annual report | $50 | If filed after April 1 |
| Trade name registration (if using a DBA) | State fee | When registering |
| Meals and rooms license (restaurants, lodging, car rentals) | No fee | Before you start operating |
Step 1: Choose your LLC name
The name must include "limited liability company", "LLC" or "L.L.C." and be distinguishable from other names on file. Search the Secretary of State’s business records, then check federal trademarks, domains and social handles with our business name checklist.
To trade under another name, register a trade name with the Corporation Division.
Step 2: Appoint a registered agent
Every New Hampshire LLC needs a registered agent with a physical New Hampshire address, available during business hours. You can serve yourself, name another adult or use a commercial agent.
Step 3: File the Certificate of Formation
File a Certificate of Formation with the New Hampshire Secretary of State’s Corporation Division, online through its business portal or by mail, and pay the fee. You’ll include the LLC’s name, principal office, registered agent, management structure and a brief description of the business. Online filings are typically processed quickly.
Step 4: Create an operating agreement
New Hampshire doesn’t require you to file an operating agreement, but every LLC should have one, covering ownership, management, profit sharing and what happens when members join or leave.
Step 5: Get an EIN and open a bank account
Apply for a free EIN from the IRS online, then open a business bank account using your filed Certificate and EIN. See choosing a business bank account.
Step 6: Understand New Hampshire’s business taxes
New Hampshire’s tax system is unusual:
- No general sales tax. Most businesses don’t collect sales tax, though out-of-state customers’ home states may expect it.
- No tax on wages. There’s no state income tax on employees’ or owners’ wages.
- Business Profits Tax (BPT). Businesses, including LLCs, generally pay this tax on profits once their gross business income exceeds a filing threshold, which has recently been around $100,000 and is adjusted periodically.
- Business Enterprise Tax (BET). A low-rate tax on a base of compensation, interest and dividends paid, applying to larger businesses above its own thresholds.
- Meals and Rooms Tax. Restaurants, caterers, hotels, short-term rentals and car rental businesses collect this tax from customers and need a license from the Department of Revenue Administration.
Many very small LLCs fall below the BPT and BET thresholds. Growing businesses should track gross receipts and ask an accountant when filing becomes required. BPT paid can often be credited against BET.
Planning for business taxes as you grow
Because New Hampshire’s business taxes switch on at thresholds, it pays to plan ahead:
- Track gross business income from day one, so you know when you’re approaching the Business Profits Tax filing threshold.
- Understand how owner compensation is treated. The BPT allows a deduction for reasonable compensation to owners, which can significantly affect how much a small LLC owes. An accountant can help you set and document it.
- Make estimated payments once you’re liable, since New Hampshire expects business taxes to be paid during the year.
- Keep payroll and interest records, which form part of the Business Enterprise Tax base.
For many owner-operated businesses, careful planning keeps New Hampshire’s business taxes modest, and the lack of wage and sales tax remains a real advantage.
Step 7: Get licenses and permits
- Contractors aren’t licensed statewide in New Hampshire, but electricians and plumbers need state licenses, and towns issue building permits.
- Many professions are licensed by the state’s professional licensing office.
- Towns handle zoning, permits and some local licenses.
Step 8: File your annual report by April 1
Every New Hampshire LLC files an annual report with the Secretary of State by April 1 each year, starting the year after formation. It costs $100, and filing late adds a $50 late fee. LLCs that don’t file can be administratively dissolved.
How a New Hampshire LLC is taxed
New Hampshire doesn’t tax individuals on wages or business income passed through to them. Owners still pay federal income tax and self-employment tax. At the state level, the LLC itself may owe the Business Profits Tax and Business Enterprise Tax once it passes the thresholds. Ask a New Hampshire accountant how they apply to you.
Hiring your first employee in New Hampshire
Beyond the federal steps in our first employee guide, New Hampshire employers generally:
- Register for unemployment insurance with New Hampshire Employment Security.
- Carry workers’ compensation insurance, required once you have employees.
- Report new hires to the state.
Because there’s no tax on wages, there’s no state income tax withholding.
Your New Hampshire LLC compliance calendar
| Deadline | Filing | Paid to |
|---|---|---|
| April 1 each year | Annual report ($100) | Secretary of State |
| Yearly, if above thresholds | Business Profits Tax and Business Enterprise Tax returns | Department of Revenue Administration |
| Monthly | Meals and rooms tax returns, if applicable | Department of Revenue Administration |
| Quarterly | Unemployment insurance reports, if you have employees | New Hampshire Employment Security |
Example: state costs for your first two years
For a single-member LLC below the BPT and BET thresholds:
| Year 1 | Year 2 | |
|---|---|---|
| Certificate of Formation | About $102 online | — |
| Annual report | — | $100 |
| State total | About $102 | $100 |
Add any meals and rooms license, professional licenses and town permits. Use our startup cost calculator to plan.
Selling to customers in other states
New Hampshire businesses often sell to customers in Massachusetts, Maine, Vermont and beyond. Even though New Hampshire has no sales tax:
- Online sellers may need to collect sales tax for other states once they pass those states’ thresholds.
- Businesses that regularly work in Massachusetts may need to register there as a foreign LLC and deal with Massachusetts taxes.
- Retail stores near the border attract shoppers from states with sales tax, which can be a real competitive advantage.
See our Massachusetts and Maine guides.
New Hampshire rules for common types of business
Food businesses. Restaurants and food service businesses are licensed by the state health department or certain local health officers, and collect meals and rooms tax. New Hampshire’s homestead food rules let some home cooks sell certain foods directly to consumers without a license, within sales limits. See our cottage food business guide.
Childcare. Child care programs are licensed by the state health and human services department. See our home daycare guide.
Tourism and lodging. Lakes Region, White Mountains and Seacoast businesses often need meals and rooms licenses and local permits for lodging.
New Hampshire compared with nearby states
| State | Filing fee | Yearly state report |
|---|---|---|
| New Hampshire | $100 | $100 |
| Massachusetts | $500 | $500 |
| Maine | $175 | $85 |
| Vermont | Moderate filing fee | Yearly report |
Mistakes to avoid
- Assuming no sales tax means no business taxes. BPT and BET may apply as you grow.
- Missing April 1, which brings a $50 late fee.
- Running a restaurant or rental without a meals and rooms license.
- Ignoring other states’ sales tax when selling online.
- Letting your registered agent lapse, so state notices and legal papers go astray.
Frequently asked questions
Does New Hampshire have an income tax? Not on wages. Businesses may owe the Business Profits Tax and Business Enterprise Tax above thresholds.
When is my first annual report due? By April 1 of the year after your LLC is formed.
Can I be my own registered agent? Yes, with a physical New Hampshire address where you’re available during business hours.
Is my LLC’s information public? Your LLC’s name, principal office, registered agent and listed managers or members appear in the Secretary of State’s records.
Next steps
Read the Start a Business A–Z guide, see taxes and bookkeeping for 2026, and plan with the break-even calculator.
This guide is general information, not legal or tax advice. Thresholds and rules change; check the New Hampshire Secretary of State and Department of Revenue Administration before you file.
Sources
- Start Business By State, LLC cost table 2026
- FileForms, state annual report deadlines
- New Hampshire Secretary of State, Corporation Division
- New Hampshire Department of Revenue Administration
Last reviewed October 19, 2026. Startup costs are estimates; check local prices, licensing and tax rules before you commit money.
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