New Hampshire LLC Taxes
After you start a New Hampshire LLC, it's important to understand your tax obligations. The taxes your LLC owes depend on how it's classified, state and local rules, whether you sell taxable goods or services, and whether you have employees.
LLC Pass-Through Taxation
By default, LLCs don't pay taxes directly. Instead, the LLC members report the income (or losses) on their personal Form 1040 tax return. This is called pass-through taxation — tax responsibility "passes through" the LLC to its owners.
How Are LLCs Taxed in New Hampshire?
By default, a New Hampshire LLC is taxed by the IRS based on the number of members:
- An LLC with 1 owner (Single-Member LLC) is taxed like a Sole Proprietorship
- An LLC with 2+ owners (Multi-Member LLC) is taxed like a Partnership
These are the "default" statuses — automatically applied based on member count. You can also elect to have your LLC taxed as a Corporation (S-Corp or C-Corp) by filing extra paperwork with the IRS.
Single-Member LLC (default)
The IRS treats Single-Member LLCs as Disregarded Entities — the LLC doesn't file its own federal return. Instead, the owner reports LLC income on their personal Form 1040 (Schedule C if owned by an individual).
Multi-Member LLC (default)
Multi-Member LLCs file a Form 1065 Partnership Return and issue a Schedule K-1 to each member. Each member then reports their share of profits on their personal Form 1040.
Electing Corporate Taxation
- S-Corporation: File Form 2553 with the IRS. Can reduce self-employment taxes once the LLC has consistent profits (generally $70,000+ net income per member). Speak with an accountant first.
- C-Corporation: File Form 8832 with the IRS. Uncommon for small LLCs. Primarily useful for large employers offering healthcare fringe benefits.
New Hampshire State Income Tax
Good news — New Hampshire does not have a state-level personal income tax. You do not need to file a state income tax return for your New Hampshire LLC.
New Hampshire does not tax wages or salary. However, it imposes two business-level taxes on LLCs — the Business Profits Tax (BPT) and Business Enterprise Tax (BET) — see below.
New Hampshire Special LLC Taxes
New Hampshire Business Profits Tax (BPT)
New Hampshire imposes a Business Profits Tax (BPT) of 7.5% on net income from business activity in New Hampshire. This applies to LLCs with gross business income over $92,000. Unlike most states, this is an entity-level tax — the LLC itself pays it.
New Hampshire Business Enterprise Tax (BET)
New Hampshire also imposes a Business Enterprise Tax (BET) of 0.55% on a business enterprise's taxable enterprise value tax base (wages, interest, and dividends paid). This applies to LLCs with gross receipts over $281,000 or enterprise value tax base over $140,500. The BET can be credited against the BPT.
Both taxes are filed with the NH Department of Revenue Administration using Form BPT and Form BET.
Local Income Tax
You and/or your LLC may also need to file and pay income taxes with your local municipality (city, county, etc.). Contact your local government or hire an accountant to confirm local requirements.
New Hampshire Sales Tax
New Hampshire does not have a state sales tax — one of only a handful of states with this advantage. However, some local jurisdictions may still impose use taxes. Check with your accountant or local government to confirm.
New Hampshire LLC Payroll Taxes
If your New Hampshire LLC has employees, you must handle payroll taxes, which include:
- Federal income tax withholding
- New Hampshire state income tax withholding (New Hampshire has no state wage income tax withholding)
- Social Security and Medicare taxes (FICA)
- Federal unemployment tax (FUTA)
- New Hampshire state unemployment tax (SUTA)
Payroll calculations are complex — most LLC owners hire a payroll service or accountant.
New Hampshire Tax Agency Contact
New Hampshire LLC Taxes — FAQs
Read the step-by-step formation guide with filing fees, processing times, and annual report deadlines.