Why Choose New Hampshire for Your LLC?
No sales tax, no personal income tax (as of 2025), and proximity to Boston's tech and biotech ecosystems. New Hampshire offers a tax-friendly environment for individuals.
No Personal Income Tax
New Hampshire is one of only 9 states with no personal income tax, which means pass-through income from your LLC is not subject to state income tax. This can result in significant savings compared to high-tax states like California (13.3%) or New York (10.9%).
New Hampshire Tax Overview
Understanding New Hampshire's tax structure is essential for non-resident LLC owners. Here's a comprehensive breakdown of all applicable taxes.
| Tax Type | Rate | Applies to LLCs? |
|---|---|---|
| Personal Income Tax | None (Interest & Dividends tax repealed 2025) | No |
| Corporate/Entity Tax | 7.5% Business Profits Tax + 0.55% Business Enterprise Tax | C-corps and entities with nexus |
| Sales Tax | 0% (no sales tax) | If selling taxable goods/services |
| Annual Fee | $100 annual report | Yes |
Personal Income Tax
New Hampshire has no personal income tax. This means that if your LLC is taxed as a disregarded entity or partnership, the pass-through income is not subject to state-level income tax. This is a major advantage for non-resident entrepreneurs who structure their US business as a single-member LLC.
Corporate / Entity Tax
New Hampshire imposes a corporate tax rate of 7.5% Business Profits Tax + 0.55% Business Enterprise Tax. This applies to LLCs that have elected to be taxed as C-corporations. Single-member LLCs treated as disregarded entities for federal tax purposes are generally not subject to the state corporate income tax.
Sales Tax
New Hampshire has no state-level sales tax, which is a significant advantage for businesses selling physical products. New Hampshire is one of only five states with no sales tax (along with Alaska, Delaware, Montana, Oregon).
LLC Formation Requirements
Forming an LLC in New Hampshire involves the following steps and costs:
- Formation fee: $100
- File with: New Hampshire Secretary of State
- Registered agent: Required (must have a physical address in New Hampshire)
- Operating agreement: Recommended but not always required to be filed with the state
- EIN application: Required for tax filing (Form SS-4)
Formation Tip for Non-Residents
As a non-resident entrepreneur, you'll need a registered agent service in New Hampshire to receive legal and tax documents on your behalf. Registered agent services typically cost $50–$300 per year. You don't need to live in or visit New Hampshire to form or maintain an LLC there.
Annual Requirements & Fees
After forming your New Hampshire LLC, you'll need to maintain compliance with these ongoing requirements:
| Requirement | Details |
|---|---|
| Annual/Biennial Report | Due April 1 |
| Annual Fee | $100 annual report |
| Registered Agent | Must maintain continuously |
| State Tax Filing | No state income tax return required |
Important Note
New Hampshire fully repealed its Interest & Dividends Tax as of January 1, 2025, making it a true no-income-tax state. However, the state still imposes a Business Profits Tax (7.5%) and Business Enterprise Tax (0.55%) on businesses operating in the state. The BET can be credited against the BPT.
Federal Tax Obligations
Regardless of which state your LLC is formed in, non-resident LLC owners must comply with these federal requirements:
- Form 5472: Required for all foreign-owned single-member LLCs to report transactions between the LLC and its foreign owner. Penalty for non-filing: $25,000.
- Pro Forma Form 1120: Filed together with Form 5472 as an information return for disregarded entities.
- ITIN (Form W-7): Non-residents need an Individual Taxpayer Identification Number to file US tax returns.
- EIN (Form SS-4): Required for all LLCs to open bank accounts and file taxes.
- FBAR (FinCEN 114): Required if your US financial accounts exceed $10,000 at any point during the year.
Key Federal Deadlines
Form 5472 + 1120: Due April 15 (6-month extension available to October 15)
FBAR: Due April 15 (automatic extension to October 15)
Pros and Cons of a New Hampshire LLC
Advantages
- No sales tax
- No personal income tax (as of 2025)
- Proximity to Boston
- Low cost of living compared to Massachusetts
- Strong quality of life
Disadvantages
- Business Profits Tax (7.5%) applies
- Business Enterprise Tax (0.55%) on enterprise value
- $100 annual fees
- Smaller market
- Cold climate
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