How to form an LLC in New Hampshire
This Quick Start Guide is a brief overview of how to form an LLC in New Hampshire.
New Hampshire LLC costs:
LLC formation: $100 (one-time fee)
Annual report: $100 (every year)
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Note: Our tax lesson is not as step-by-step as our Forming an LLC in New Hampshire lesson, due to the uniqueness and variation among businesses in the state. Taxes are usually not as straightforward as forming an LLC in New Hampshire, and therefore, the information below is an overview, and not a comprehensive guide.
You will most likely need to hire a tax professional to make sure you meet all your New Hampshire state and local tax obligations. We recommend using Thumbtack.
Do it yourself in New Hampshire
New Hampshire Tax Overview
New Hampshire Department of Revenue Administration (DRA): Taxpayer Assistance Overview
New Business Tax Licenses & Permits
New Hampshire DRA: Frequently Asked Questions – New Business Tax Licenses & Permits
Online Tax Registration with e-File New Hampshire
New Hampshire DRA: Granite Tax Connect
Under the “Registration” section, click “Register a New Taxpayer” and follow the onscreen instructions.
Department of Revenue Administration Contact Page
New Hampshire DRA: Contact Us
Depending on your industry, where your business is located, how you are taxed by the IRS, and whether or not you have employees, will determine which additional taxes and forms are due.
Some examples of other taxes and forms due are:
- Sales and use tax
- Employer’s withholding tax
- Tobacco tax
- Property tax
- Alcohol tax
- Fuel tax
- Local taxes
- Gravel Tax
- Meals and Room (Rentals) Tax
- Business Enterprise Tax
- Business Profits Tax
- Communications Services Tax
- Electricity Consumption Tax
- Inheritance and Estate Tax
- Interest and Dividends Tax
- Medicaid Enhancement Tax
- Nursing Facility Quality Assessment
- Real Estate Transfer Tax
- State Education Property Tax
- Timber Tax
- Utility Property Tax
- And more
Federal Taxes with the IRS
By default, single-member LLCs in New Hampshire are taxed as Sole Proprietorships by the IRS, and by default, multi-member LLCs in New Hampshire are taxed as Partnerships by the IRS. The bulleted list above refers to state and local taxes, not federal taxes filed with the IRS.
Remember, the income/losses from your LLC will “flow through” to your personal 1040 tax return on a Schedule C, as well as additional Schedules depending on how you derive your income.
Tip: The above language really confused a lot of people. Notice that we said “taxed as”. This means, in the eyes of the law, your New Hampshire LLC is still a separate legal entity from you, but the IRS is treating your New Hampshire LLC differently (just for tax purposes). Technically, your LLC is still an “LLC legal entity” with the state and the law, but your LLC is a “tax entity” (either a Sole Proprietorship or Partnership) with the IRS.
Additionally, your tax professional may recommend that your New Hampshire LLC be taxed as a Corporation with the IRS. In that case, your LLC can be taxed as a C-Corp or your LLC can be taxed as an S-Corp. You’ll need to discuss this with your tax professional though, as this usually only works for certain types of businesses, and those businesses that are making close to (or over) $100,000 per year. Typically though, having an LLC taxed as an S-Corp (once revenue is near/over $100k per year) can save you at least a few thousand dollars per year in self-employment taxes).
Calculating your tax obligations in New Hampshire (and with the IRS) can be complicated and if done improperly can negatively impact your LLC.
Hiring a tax professional will not only help you keep your New Hampshire LLC in compliance, but it will also give you an advisor to go to for other business questions.
You’ll want someone who’s a good fit for your company, makes you feel comfortable, and is willing to answer all of your questions. It should be someone you like personally as well as professionally. We recommend talking with at least 2-3 people before making your final decision.