By Jake Lawson, LLC Formation Strategist
New Hampshire has one of the most unique tax structures in the country, and it’s both a blessing and a potential trap for LLC owners. Here’s what you need to understand: New Hampshire has no state income tax and no sales tax, but they make up for it with business-specific taxes that catch many entrepreneurs off guard.
I’ve helped dozens of New Hampshire business owners navigate these waters, and the biggest mistake I see is assuming “no income tax” means “no state taxes.” That’s absolutely not the case if your LLC is profitable.
Let me walk you through everything you need to know about New Hampshire LLC taxes, including the business taxes that most people don’t know about until it’s too late.
The New Hampshire Tax Advantage (And the Fine Print)
The good news: New Hampshire doesn’t tax wages, salaries, or most investment income. There’s also no state sales tax, which is fantastic if you’re selling products.
The catch: If your LLC is profitable, you’ll likely owe New Hampshire’s Business Enterprise Tax (BET) and possibly the Business Profits Tax (BPT). These are business-level taxes that many entrepreneurs don’t plan for.
Bottom line: New Hampshire can be very tax-friendly for LLCs, but you need to understand the rules and plan accordingly.
How Your New Hampshire LLC Gets Taxed (Federal Level)
The federal government doesn’t care that you formed your LLC in New Hampshire—they tax all LLCs the same way based on ownership structure.
Single-Member LLCs (Just You)
Your LLC is a “disregarded entity” for federal tax purposes, meaning:
- No separate business tax return required
- All income and expenses go on your personal Form 1040
- Business income reported on Schedule C (like a sole proprietorship)
- You pay self-employment taxes on all LLC profits
Example: Your New Hampshire LLC makes $80,000 profit. You’ll pay regular income tax on $80,000 PLUS self-employment tax of about $12,240 (15.3% of $80,000).
Multi-Member LLCs (Two or More Owners)
Your LLC is automatically taxed as a partnership:
- The LLC files Form 1065 (Partnership Return)
- Each owner gets Schedule K-1 showing their share of profits/losses
- Owners report K-1 income on personal returns
- Each owner pays self-employment tax on their distributive share
Husband and Wife LLCs
New Hampshire is NOT a community property state, so married couples cannot elect to be treated as a single-member LLC for tax purposes. You’re stuck with partnership taxation unless you restructure ownership.
Strategic tip: Consider having one spouse own 100% of the LLC and paying the other spouse as an employee. This can simplify taxes significantly.
New Hampshire State Tax Requirements
This is where New Hampshire gets interesting. While there’s no personal income tax, profitable businesses face unique state-level taxes.
Business Enterprise Tax (BET)
The BET is essentially a gross receipts tax that applies to ALL business activity, regardless of where it occurs.
Key details:
- Tax rate: 0.6% of gross receipts above the threshold
- 2025 threshold: $224,000 in gross receipts
- Applies to: Total business income from everywhere (not just New Hampshire)
- Who pays: All LLCs that exceed the threshold
Example: Your LLC has $300,000 in gross receipts. You’ll owe BET on $76,000 ($300,000 – $224,000) = $456 in BET.
Important note: This is based on gross receipts, not profit. Even if your LLC loses money, you could still owe BET if your revenue exceeds the threshold.
Business Profits Tax (BPT)
The BPT is more like a traditional corporate income tax, but it only applies to business profits earned in New Hampshire.
Key details:
- Tax rate: 7.6% of business profits
- 2025 threshold: $60,000 in New Hampshire business profits
- Applies to: Only profits from New Hampshire business activity
- Who pays: LLCs with significant New Hampshire profits
Example: Your LLC earns $100,000 profit, with $80,000 from New Hampshire activities. You’ll owe BPT on $20,000 ($80,000 – $60,000 threshold) = $1,520.
When Both Taxes Apply
Many successful LLCs end up paying both BET and BPT. The good news is that BET paid can be credited against BPT owed, so you don’t get completely double-taxed.
Planning tip: These thresholds change annually, so check current amounts each year. The Department of Revenue Administration publishes updated thresholds on their website.
LLC Tax Elections: When to Consider Corporate Status
Most New Hampshire LLCs should stick with default pass-through taxation, but there are situations where corporate elections make sense.
S-Corporation Election (Form 2553)
This election can save money on federal self-employment taxes and might help with New Hampshire business taxes.
How it works:
- LLC legally stays an LLC but gets taxed like an S-Corp
- You become an employee and pay yourself a reasonable salary
- Additional profits are distributed without self-employment tax
- For New Hampshire purposes, you might reduce BET exposure
When it makes sense:
- LLC profits exceed $70,000+ annually per member
- You want to minimize self-employment taxes
- You’re comfortable with payroll compliance
New Hampshire consideration: S-Corp election might help with BET planning since salary payments to owner-employees might be treated differently than LLC distributions.
C-Corporation Election (Form 8832)
Rarely makes sense for small LLCs, but could be relevant for larger businesses focused on employee benefits.
Why most avoid it: Double taxation at federal level, and you’d still face New Hampshire business taxes.
The Sales Tax Advantage
Here’s one of New Hampshire’s biggest advantages: no state sales tax.
What this means:
- No need to register for state sales tax permits
- No need to collect sales tax from New Hampshire customers
- Significant competitive advantage for retail businesses
The catch: If you sell to customers in other states, you might still need to collect sales tax for those states based on economic nexus rules.
Multi-state consideration: Use a service like TaxJar to handle out-of-state sales tax obligations. The complexity of 50 different state rules isn’t worth trying to manage manually.
Employment Taxes and Payroll
When you hire employees in New Hampshire, you’ll deal with federal payroll taxes plus some state-specific requirements.
Federal Requirements
- Federal income tax withholding
- Social Security and Medicare taxes
- Federal unemployment tax (FUTA)
New Hampshire Requirements
- No state income tax withholding (major advantage)
- State unemployment tax (SUTA)
- Workers’ compensation insurance
Strategic advantage: The lack of state income tax withholding makes payroll simpler and gives employees more take-home pay, which can help with recruitment.
Record-Keeping for New Hampshire LLCs
Good records are crucial, especially for calculating New Hampshire’s business taxes accurately.
Essential Records for BET/BPT Compliance
Gross receipts tracking (for BET):
- All business income from all sources
- Revenue from all states, not just New Hampshire
- Detailed monthly/quarterly revenue reports
New Hampshire profit allocation (for BPT):
- Separate tracking of New Hampshire vs. out-of-state income
- Allocation methods for multi-state income
- Documentation supporting apportionment formulas
General business records:
- Bank statements and deposit records
- Customer invoices and receipts
- Expense receipts and documentation
- Mileage logs for business travel
Recommended Software
QuickBooks Online: Best overall choice for most LLCs. Set up location tracking to help with BPT calculations.
For multi-state businesses: Consider more sophisticated software or hire a bookkeeper familiar with interstate commerce rules.
Common New Hampshire LLC Tax Mistakes
Mistake #1: Ignoring BET/BPT Requirements
Many entrepreneurs focus on the “no income tax” marketing and miss the business-level taxes entirely.
The fix: Calculate your estimated gross receipts and New Hampshire profits quarterly. Set aside money for these taxes throughout the year.
Mistake #2: Poor Record-Keeping for Multi-State Income
If you do business in multiple states, you need detailed records to properly allocate income for BPT purposes.
The fix: Use accounting software with location tracking, or maintain detailed spreadsheets showing income sources by state.
Mistake #3: Not Planning for Threshold Changes
BET and BPT thresholds change annually. What didn’t trigger taxes last year might trigger them this year.
The fix: Review thresholds each January and adjust your tax planning accordingly.
Mistake #4: Forgetting About Federal Self-Employment Taxes
The lack of state income tax doesn’t eliminate federal self-employment taxes, which can be substantial.
The fix: Make quarterly estimated payments to cover both federal income taxes and self-employment taxes.
Advanced Planning Strategies
Multi-State Income Allocation
If your LLC operates in multiple states, proper income allocation can minimize New Hampshire BPT.
Common allocation methods:
- Sales-based: Income allocated based on where customers are located
- Payroll-based: Income allocated based on where employees work
- Property-based: Income allocated based on where business assets are located
S-Corp Election Timing
For profitable LLCs, S-Corp election might reduce both federal self-employment taxes and New Hampshire business taxes.
Analysis needed:
- Compare self-employment tax savings vs. payroll tax costs
- Consider impact on BET calculations
- Factor in additional compliance costs
Domicile vs. Business Location Planning
New Hampshire’s lack of personal income tax makes it attractive for business owners, but you need to establish legitimate domicile.
Domicile factors:
- Where you live most of the year
- Where you vote and register vehicles
- Where your primary business activities occur
- Social and economic ties to the state
Your New Hampshire LLC Tax Calendar
Quarterly (Throughout the year)
- Review gross receipts for BET threshold monitoring
- Make federal estimated tax payments
- Track New Hampshire vs. out-of-state income
Annual Filing Deadlines
- March 15: Partnership returns (if multi-member LLC)
- April 15: Personal tax returns and final estimated payments
- April 15: BET and BPT returns (if applicable)
Year-End Planning (November-December)
- Project year-end gross receipts and profits
- Consider timing of income and expenses
- Plan for following year’s estimated payments
- Review tax election opportunities
When to Get Professional Help
DIY Territory
- Single-member LLC under BET/BPT thresholds
- Simple business model with clear New Hampshire income
- Comfortable with tax software and record-keeping
Hire a Professional
- Multi-member LLC requiring partnership returns
- Business income approaching BET/BPT thresholds
- Multi-state operations requiring income allocation
- Considering S-Corp or other tax elections
- Complex business structure or transactions
Finding the Right New Hampshire Tax Professional
Look for:
- Experience with New Hampshire business taxes (BET/BPT)
- Understanding of multi-state income allocation
- Proactive planning approach, not just compliance
- Clear communication about tax strategies
The Bottom Line on New Hampshire LLC Taxes
New Hampshire offers genuine tax advantages for LLC owners, but you need to understand the full picture. The lack of personal income tax and sales tax can save thousands annually, but profitable businesses will face business-level taxes that require planning.
Key takeaways:
- Plan for BET if gross receipts exceed $224,000
- Plan for BPT if New Hampshire profits exceed $60,000
- Keep detailed records for multi-state income allocation
- Consider S-Corp election for profitable LLCs
- Take advantage of the sales tax and income tax benefits
Most importantly: New Hampshire’s tax advantages are real, but they require proper planning and compliance to maximize benefits while avoiding penalties.
Ready to Maximize Your New Hampshire Tax Strategy?
Understanding tax requirements is just one part of running a successful New Hampshire LLC. The foundation starts with proper formation and ongoing compliance.
Need help with New Hampshire LLC formation? Our comprehensive guides cover everything from registered agent selection to understanding ongoing requirements like the annual report.
Looking for ongoing tax and compliance support? We work with New Hampshire business owners to ensure they take full advantage of the state’s tax benefits while staying compliant with all requirements.
Jake Lawson has helped over 1,200 entrepreneurs optimize their business tax strategies across all 50 states. His New Hampshire expertise comes from 15+ years of working with business owners who’ve chosen the Granite State for its unique tax advantages. This information is for educational purposes only and should not replace professional tax advice.