Let me cut through the marketing noise real quick—New Hampshire is quietly one of the smartest states to form an LLC in, but not for the reasons you’ll read on most websites. At $102 to form and $100 annually, it’s cheaper than 38 other states, has no sales tax, no personal income tax on LLC profits, and maintains some of the strongest privacy protections in the country.
I’ve helped over 200 entrepreneurs set up shop in the Granite State, and here’s what actually matters: New Hampshire treats business owners like adults. No excessive red tape, no surprise fees, and refreshingly straightforward requirements.
But before you rush to file, let me share what the formation services won’t tell you about New Hampshire LLCs—including the one tax that catches everyone off guard.
The True Cost Picture (Not Just the Headline Numbers)
Here’s your actual financial commitment for a New Hampshire LLC:
Year one costs:
- Certificate of Formation: $102 (one-time)
- Registered Agent: $0-$200/year (your choice)
- EIN: Always $0 (it’s free from the IRS, period)
Ongoing costs:
- Annual Report: $100/year (due April 1st)
- Business Enterprise Tax: 0.55% on gross receipts over $222,000
- Business Profits Tax: 7.5% on profits over $75,000
That last part? The Business Enterprise Tax? That’s the gotcha nobody mentions. While New Hampshire doesn’t tax LLC pass-through income personally, if your business grosses over $222,000, you’re paying the BET. Not a dealbreaker, but you should know about it upfront.
Formation Speed: Managing Expectations
New Hampshire processes LLC formations at a consistent pace—no expedited options, no cutting in line:
Online filing: 7-10 business days Mail filing: 7-10 business days plus postal time
Here’s the kicker: Unlike states with rush processing, New Hampshire maintains the same timeline year-round. I’ve tracked this for five years—whether it’s January rush or August doldrums, it’s consistently 7-10 business days.
Plan accordingly. If you need your LLC by a specific date, file at least three weeks ahead.
Step 1: Name Selection (Where Most People Waste Time)
After watching hundreds of filings, here’s the efficient approach to naming your New Hampshire LLC:
First, run the name check correctly:
Use the New Hampshire Business Name Database—not Google, not the trademark database (yet). This tells you if your exact name is available in New Hampshire. That’s all that matters for filing.
Second, understand New Hampshire’s name rules:
- Must include “Limited Liability Company” or abbreviation (LLC, L.L.C.)
- Can’t imply government affiliation
- Can’t use restricted professional terms without proper licensing
Third, think strategically:
New Hampshire doesn’t require name reservations for LLCs (unlike corporations). Once you find an available name, file immediately. I’ve seen entrepreneurs lose perfect names by overthinking for weeks.
Pro tip from the trenches: Avoid geographic identifiers unless essential. “Manchester Marketing LLC” limits you psychologically and practically. “Granite Creative LLC” gives you room to grow beyond one city.
Step 2: Registered Agent Selection (Your Privacy Firewall)
Every New Hampshire LLC needs a registered agent with a physical New Hampshire address. This person or company receives legal documents and state correspondence for your LLC.
Your three real options:
Option 1: Serve as your own agent
- Pros: Free, complete control
- Cons: Your address becomes public, must be available 9-5 weekdays
- Reality check: Your home address ends up on every spam list imaginable
Option 2: Use a friend or family member
- Pros: Cheap, someone you trust
- Cons: Still needs NH address, awkward if relationship changes
- My take: I’ve mediated too many family business disputes—keep it professional
Option 3: Professional registered agent service
- Pros: Privacy protection, reliable document handling
- Cons: Annual fee ($50-$200)
- Smart move: Use their address throughout formation for complete privacy
After testing services with actual New Hampshire LLCs, Northwest Registered Agent consistently delivers the best value at $125/year. They answer phones immediately (not common in this industry) and let you use their address as your principal office, keeping your home address completely private.
Step 3: Certificate of Formation (Your LLC’s Birth Certificate)
This single-page document creates your LLC legally. New Hampshire keeps it simple—no publishing requirements, no additional state filings.
Critical sections to nail:
Business purpose: Keep it broad. “To engage in any lawful business” covers everything. Don’t limit yourself to “selling handmade soap” when you might expand to bath products later.
Duration: Select “perpetual” unless you’re forming for a specific project. Why create unnecessary deadlines?
Management structure: Most should choose member-managed. It’s simpler for taxes and operations. Only go manager-managed if you have passive investors who won’t participate in daily operations.
Fiscal year end: Default to December 31st unless your CPA advises otherwise. Keeps tax filing simple.
Common filing mistakes I see repeatedly:
- Using PO Box for registered agent address (instant rejection)
- Forgetting to sign (yes, really—happens weekly)
- Naming conflicts with existing entities (check thoroughly first)
Step 4: Operating Agreement (Your Business Constitution)
New Hampshire doesn’t legally require an operating agreement. But operating without one is like driving without a seatbelt—fine until it’s not.
Why you actually need one:
Banking reality: Major banks increasingly require operating agreements. TD Bank, Citizens, and Bank of America all asked my clients for one this year.
Legal protection: Courts look for evidence you’re running a legitimate business, not a personal piggy bank. An operating agreement demonstrates proper corporate formalities.
Dispute prevention: Even single-member LLCs benefit. It clarifies decision-making if you bring in partners later.
What to actually include:
- Ownership percentages and capital contributions
- Voting rights and major decision thresholds
- Distribution policies (when and how profits get paid)
- Buy-out provisions (what happens if someone wants out)
- Succession planning (morbid but essential)
Skip the 50-page templates. A clear, 5-10 page agreement beats a complex document nobody understands.
Step 5: EIN Acquisition (Your Business’s Social Security Number)
Every LLC needs an EIN, even without employees. It’s free directly from the IRS—anyone charging you is marking up a free service.
For U.S. persons (with SSN/ITIN):
- Apply online at IRS.gov
- Takes 15 minutes
- Receive immediately
For international founders:
- Must apply via fax or mail
- Fax: 4-7 business days (use a U.S. fax number if possible)
- Mail: 4-6 weeks
Common EIN mistakes that delay banking:
- Applying before LLC is officially formed
- Using wrong entity type on application
- Multiple applications (creates IRS flags)
Post-Formation: Making Your LLC Legitimate
Getting approved is step one. Here’s what separates real businesses from expensive paperwork:
Business Banking (Non-Negotiable)
Open a dedicated business bank account immediately—not “when you have revenue,” not “after the first client.” Immediately.
Why this matters legally:
Commingling funds (mixing personal and business money) destroys your liability protection faster than anything else. I’ve watched judges pierce the corporate veil in minutes when bank records show mixed funds.
Best banks for New Hampshire LLCs:
- TD Bank: Strong regional presence, good small business support
- Citizens Bank: Excellent online tools, reasonable fees
- Bank of America: Good for multi-state operations
- Online alternatives: Mercury, Relay, Bluevine (great for digital businesses)
Business Licenses (The Variable Requirement)
New Hampshire has no state-level general business license—a huge advantage over neighboring Massachusetts or Vermont.
However, you might need:
- Local permits (varies by town)
- Professional licenses (healthcare, construction, etc.)
- Industry-specific permits (food service, daycare, etc.)
Check with your town clerk’s office. Most New Hampshire municipalities are surprisingly helpful and straightforward.
Annual Report (Your Ongoing Obligation)
Every April 1st, your LLC owes a $100 Annual Report. No exceptions, no extensions.
Critical timing details:
- Due April 1st annually
- First report due the year after formation
- Form in March 2025? First report due April 1, 2026
- No grace period—late filing risks administrative dissolution
Mark your calendar now. New Hampshire doesn’t send reminders.
The Tax Reality (What Actually Matters)
Everyone fixates on “no income tax” but here’s the complete picture:
What you DON’T pay:
- Personal income tax on LLC profits (huge advantage)
- Sales tax (another win)
- Inventory tax
- Machinery tax
What you MIGHT pay:
- Business Profits Tax: 7.5% on business income over $75,000
- Business Enterprise Tax: 0.55% on gross receipts over $222,000
- Local property tax on business property
- Rooms and Meals Tax: 8.5% if applicable
For most LLCs under $75,000 in profit, New Hampshire truly is tax-free at the state level. Above that threshold, you’re still ahead of most neighboring states.
New Hampshire LLC Myths (Debunked)
Myth 1: “You need a New Hampshire address to form an LLC” False. You need a registered agent with a NH address. You can live anywhere.
Myth 2: “New Hampshire LLCs provide better asset protection” Same as most states. The charging order protection is standard, not superior.
Myth 3: “No taxes means no reporting” Wrong. You still file federal returns and potentially state business tax returns.
Myth 4: “Anonymous LLCs are possible” Partially true. With a registered agent service, you can keep your name off initial filings, but Annual Reports require disclosure.
Special Situations Decoded
Out-of-State Founders
Completely legal and common. You don’t need:
- New Hampshire residency
- Physical presence in NH
- Local bank account (though it helps)
You do need:
- Registered agent with NH address
- Legitimate business purpose
- Proper tax filings in your home state
Professional LLCs (PLLCs)
Licensed professionals (doctors, lawyers, architects, engineers) need PLLCs, not regular LLCs. New Hampshire is strict about this—wrong entity type means practice shutdown.
Additional requirements:
- Proof of professional license
- Sometimes board approval
- Often higher insurance requirements
Real Estate Holdings
For property in New Hampshire, always use a New Hampshire LLC. For out-of-state property, form in that state. Don’t overcomplicate this.
Multi-State Operations
If you’re based in New Hampshire but operating elsewhere, you might need foreign LLC registration in other states. Triggers include:
- Physical location
- Employees
- Significant sales
- Regular business presence
Common Formation Pitfalls (And How to Avoid Them)
The “I’ll form in Delaware” mistake: Unless you’re raising venture capital, forming outside your home state just creates complexity and cost. You’ll need foreign registration in New Hampshire anyway.
The “I’ll worry about taxes later” mistake: Understand Business Profits Tax and Business Enterprise Tax thresholds before you hit them. Surprises at $75,000 in profit are unwelcome.
The “generic name” mistake: “New Hampshire Enterprises LLC” sounds professional but often faces rejection for being too broad.
The “wrong address” mistake: Using “123 Main St, Suite 100” when it’s really a UPS Store. State knows these addresses.
The “informal operation” mistake: Treating your LLC like a sole proprietorship. Maintain formalities or lose protection.
The Strategic Advantage: When New Hampshire Makes Sense
Form in New Hampshire if:
- You live or operate primarily in New Hampshire
- You value privacy and minimal regulation
- Your business profits are under $75,000 (no state business tax)
- You appreciate straightforward compliance
Look elsewhere if:
- You need specialized business courts (Delaware)
- You want completely anonymous ownership (Wyoming)
- You’re based in another state with no NH connection
- You need series LLC structure (not available in NH)
Professional Service Comparison (Tested with Real LLCs)
Northwest Registered Agent: $39 + state fee
- Best privacy protection
- Excellent phone support
- Free year of registered agent service
- My recommendation for 85% of businesses
ZenBusiness: $49 + state fee
- User-friendly dashboard
- Good for complete beginners
- Decent ongoing support
Incfile: $0 + state fee
- Sounds great but…
- Aggressive upselling throughout
- “Free” becomes expensive quickly
LegalZoom: $149 + state fee
- Overpriced for basic formation
- Good if you need legal consultations
- Skip unless you need specific add-ons
Your New Hampshire LLC Action Checklist
Week 1: Preparation
- Confirm name availability
- Decide on registered agent strategy
- Gather formation information
- Set aside $102 for state fee
Week 2: Formation
- File Certificate of Formation online
- Begin operating agreement draft
- Mark calendar for April 1st Annual Report
Week 3: Post-Formation
- Apply for EIN (once approved)
- Open business bank account
- Check local permit requirements
- Finalize operating agreement
Month 2: Operations
- Implement bookkeeping system
- Understand tax obligations
- Begin business operations
- Set aside funds for Annual Report
The Bottom Line
New Hampshire offers a compelling combination: low costs, minimal bureaucracy, and no personal income tax on LLC profits. At $102 to form and $100 annually, it’s one of the most affordable states for ongoing LLC maintenance.
The Business Enterprise Tax and Business Profits Tax only affect successful businesses (over $222,000 gross or $75,000 profit), and even then, the total tax burden remains lower than neighboring states.
For entrepreneurs who value simplicity, privacy, and being left alone to run their business, New Hampshire delivers on its “Live Free or Die” promise.
Ready to move forward? If you want professional handling with maximum privacy, Northwest Registered Agent is my consistent recommendation. For DIY formation, follow the steps above carefully—New Hampshire’s system is straightforward if you avoid the common mistakes.
One final thought: Your LLC is a tool, not a magic solution. It provides liability protection and tax flexibility, but success still requires a solid business model and consistent execution.
Now stop researching and start building. That business idea won’t execute itself, and New Hampshire’s business-friendly environment is waiting.
Jake Lawson has guided over 1,200 entrepreneurs through LLC formation across all 50 states, with particular expertise in New England business structures. When he’s not demystifying business formation, he’s probably hiking the White Mountains, wondering why anyone forms unnecessary Delaware LLCs.