New Hampshire LLC Taxes
A lack of sales tax and a high employment rate has made New Hampshire a compelling place to start a business in. Yet, as more business owners choose to start their ventures in the state, many may find it challenging to understand the business taxes involved.
Regardless of the size of your business, if you operate a limited liability company (LLC) in New Hampshire, you will need to ensure you stay up to date on your finances and pay federal, state, and local taxes. Our guide will help you understand which taxes you will need to pay for your New Hampshire LLC.
Recommended: Schedule a free consultation with an accountant to stay on top of your taxes.
Business Profits Tax and Business Enterprise Tax
New Hampshire has two separate taxes that LLCs may be responsible for paying: The Business Profits Tax (BPT) and the Business Enterprise Tax (BET).
All businesses are subject to the BPT, but only those who meet the minimum threshold are required to file a return. The threshold is adjusted biennially. For tax years beginning January 1, 2023, this threshold is $103,000 in gross business income.
Only those that make an excess of $92,000 are required to pay it. This minimum number often changes; the amount you will need to pay also varies as the taxable rate occasionally changes.
The BET is determined by whether your business exceeds the gross receipts amount or enterprise value for the given year. For the taxable year starting January 1, 2023, this threshold is $281,000. Like the BPT, this amount changes biennially.
New Hampshire LLC Taxes Owed
LLCs benefit from pass-through taxation, meaning the business’s profits pass through to the members’ individual tax returns. As a result, your LLC itself does not pay taxes to the federal government or to the State of New Hampshire. Instead, LLC owners must pay taxes on their portion of the income made from the LLC.
In New Hampshire, LLC owners can expect to pay the following taxes:
Federal Taxes
Regardless of where your business is located, if you have an LLC within the United States, you will have to pay federal income taxes and federal self-employment taxes. These taxes are reported on your Form 1040.
Federal Self-Employment Taxes
It doesn’t matter if your LLC is a single-member LLC or a multi-member LLC; all LLC members must pay self-employment taxes on their share of the LLC’s profits. The self-employment tax rate is 15.3%.
Federal Income Taxes
Your federal income taxes will depend on your tax bracket, and the cutoffs for individual tax brackets, as well as the percent owed, will change each year.
New Hampshire State Taxes
Each state has its own laws dictating how individuals and businesses are taxed. New Hampshire, for instance, has no sales tax. This means that consumers do not have to pay businesses extra for sales tax, and businesses do not have to pay the state on those customer purchases.
New Hampshire Income Taxes
New Hampshire’s state income tax rate is an even 4%. This is quite low when compared to other states that have a state-level income tax, putting New Hampshire in the ten lowest income tax rates.
New Hampshire Sales and Use Tax
As mentioned above, New Hampshire does not impose any state or local sales tax rates on purchases. This means that your business will not have to file a sales tax return like in other states, which is certain to save you time and money.
Additional State Taxes
New Hampshire’s Department of Revenue oversees the collection of various taxes that businesses may have to pay depending on their location, industry, and number of employees.
These are a few taxes that business owners in New Hampshire may be responsible for paying:
- Timber Tax
- Gravel Tax
- Electricity Consumption Tax
- State Education Property Tax
- Meals and Room Rental Tax
The New Hampshire Department of Revenue’s website has more information on these and other taxes.
New Hampshire Local Taxes
The local laws and ordinances in one New Hampshire city or county are likely to be different in another. Regardless of where you live in the state, we recommend you check with your local jurisdiction and ensure that your business obtains the proper local permits and follows any local regulations that may impact your business’s operation.
New Hampshire LLC Compliance
You must obey New Hampshire’s state and local laws to maintain your business's compliance and good standing. While LLCs technically do not file taxes with the state, New Hampshire’s businesses must still file an annual report each year with the state.
New Hampshire LLC Annual Report
All New Hampshire LLCs must file an annual report with the New Hampshire Secretary of State each year. Filing can be done online or by mail and has a $100 filing fee attached to the process.
Annual reports are always due between January 1 and April 1 each year. The only exception is the year when you form your LLC, in which your report will be due the next year during that same period of January 1 and April 1.
If you do not file by April 1, your LLC will lose its “good standing” and be charged a $50 late fee. Paying the late fee will return you to favorable status, but if you miss the report two years in a row, the state will dissolve your LLC.
More information on this can be found in our New Hampshire LLC Annual Report guide.
LLC taxes are complex. While our guide can provide you with important information, we recommend you schedule a free consultation with an accountant to ensure that you handle your business taxes correctly.