New Hampshire LLC Business Taxes: What You Need to Pay
New Hampshire LLCs face a unique tax structure — no state income tax, but a Business Profits Tax at 7.6% applies at the entity level. Here's what your LLC owes at the state and federal level.
Bizee Editorial Staff
Editorial Team
New Hampshire LLC tax structure at a glance
Filing fee: $100
Processing time: [PROCESSING_TIME]
State agency: New Hampshire Department of State
Annual report due: April 1 each year
State tax rate: Business Profits Tax: 7.6% (tax years 2022 and later); no general state income tax; no state sales tax
How a New Hampshire LLC is taxed
A New Hampshire LLC doesn't pay federal income tax at the entity level. Instead, profits pass through to the members, who report them on their personal federal returns and pay income tax and self-employment tax there. At the state level, New Hampshire takes a different approach — the LLC itself owes the Business Profits Tax, not just the members.
That state-level entity tax is one of the things that catches New Hampshire LLC owners off guard. Most states either tax the members directly or skip business income tax altogether — New Hampshire does neither.
Members pay federal income tax on their share of LLC profits
Members who are active in the business pay federal self-employment tax at 15.3%
The LLC itself pays New Hampshire Business Profits Tax at 7.6% on taxable profits
New Hampshire has no general state income tax and no state sales tax
Employers withhold and remit federal payroll taxes if the LLC has employees
New Hampshire state taxes for LLCs
New Hampshire has no general state income tax and no state sales tax, but that doesn't mean your LLC has no state tax obligations. Two state-level taxes apply to most New Hampshire LLCs: the Business Profits Tax and, in some cases, the Interest and Dividends Tax.
New Hampshire Business Profits Tax (BPT)
The Business Profits Tax applies to any LLC doing business in New Hampshire. For tax years 2022 and later, the rate is 7.6% of taxable business profits. LLCs with less than $92,000 in New Hampshire gross receipts don't need to file or pay the BPT.
Unlike most states, New Hampshire does not recognize pass-through treatment for the BPT — the LLC pays the tax at the entity level, not just the members on their personal returns. A tax professional can help you figure out how to calculate taxable profits under New Hampshire's specific additions and deductions rules.
New Hampshire Interest and Dividends Tax
New Hampshire taxes certain interest and dividend income received by individuals and some entities. If your LLC distributes income that qualifies as taxable interest or dividends under state rules, you may need to register and file for this tax with the New Hampshire Department of Revenue Administration.
A tax professional can help you figure out whether your LLC's distributions trigger this obligation and what the current rate is for your filing year.
No state sales tax
New Hampshire does not impose a general state sales tax on goods or most services, so your LLC won't collect or remit New Hampshire sales tax on in-state sales. That said, if your LLC sells into other states and meets those states' economic nexus thresholds, you may need to collect and remit sales tax in those states.
Federal taxes for New Hampshire LLCs
At the federal level, how your LLC is taxed depends on how many members it has and whether you've made any tax elections. By default, a single-member LLC is treated as a disregarded entity and a multi-member LLC is treated as a partnership — in both cases, profits pass through to the members' personal federal returns.
Federal income tax
A single-member LLC reports business income and expenses on Schedule C attached to the owner's Form 1040. A multi-member LLC files a federal partnership return on Form 1065 and issues each member a Schedule K-1 showing their share of income, deductions, and credits. Each member then reports that K-1 income on their own Form 1040.
The amount of federal income tax you owe depends on your filing status, tax bracket, and applicable deductions. A tax professional can help you figure out what deductions apply to your situation.
Federal self-employment tax
Members of an LLC taxed as a sole proprietorship or partnership are treated as self-employed for federal purposes and owe self-employment tax on their share of business earnings. The rate is 15.3% — 12.4% for Social Security and 2.9% for Medicare. For 2024, the Social Security portion applies only to the first $168,600 of net self-employment earnings; the 2.9% Medicare portion applies to all net earnings.
An additional 0.9% Medicare tax applies if your combined wages and self-employment income exceed $200,000 (single filers) or $250,000 (married filing jointly). You can deduct half of your self-employment tax when calculating your adjusted gross income on your federal return.
Reducing self-employment tax with an S Corporation election
If your LLC meets IRS eligibility requirements, you can elect to be taxed as an S Corporation by filing Form 2553. Under an S Corp election, you pay yourself a reasonable salary as a W-2 employee — that salary is subject to payroll taxes — and take additional profits as distributions, which are not subject to self-employment tax. This can reduce your overall self-employment tax bill if your profits are high enough to make the election worthwhile.
Talk to a tax professional before making this election. The salary requirement and additional compliance costs mean it doesn't make sense for every LLC.
Employee and employer taxes
If your LLC has employees, you take on payroll tax obligations at both the federal and state level. These are separate from the taxes you pay as an owner on your own earnings.
Withhold 7.65% of each employee's taxable wages for their share of Social Security and Medicare taxes, and match that amount as the employer
Withhold federal income tax from employee wages based on each employee's Form W-4
File Form 941 quarterly to report and remit federal payroll taxes
File Form 940 annually for Federal Unemployment Tax (FUTA)
Register with the New Hampshire Department of Revenue Administration for any applicable state employment-related taxes
Estimated taxes
Most LLC members need to pay estimated taxes four times a year because no employer is withholding taxes on their behalf. If you expect to owe $1,000 or more in federal taxes for the year, the IRS requires quarterly estimated payments. Missing these payments can mean an underpayment penalty at tax time.
The typical estimated tax schedule covers federal income tax, federal self-employment tax, and any applicable New Hampshire state taxes. A tax professional can help you figure out the right payment amounts so you're not caught short in April.
Frequently asked questions about New Hampshire LLC business taxes
It depends on whether you're looking at state or federal taxes. At the federal level, a New Hampshire LLC is a pass-through entity by default — members pay federal income tax and self-employment tax on their share of profits. At the state level, New Hampshire is different: the LLC itself pays the Business Profits Tax at 7.6% on taxable profits, rather than passing that obligation entirely to the members. New Hampshire has no general state income tax and no state sales tax.
For tax years 2022 and later, the Business Profits Tax rate is 7.6% of taxable business profits. LLCs with less than $92,000 in New Hampshire gross receipts are not required to file or pay the BPT. The tax is paid at the entity level — the LLC pays it directly, not just the individual members on their personal returns.
No. New Hampshire does not impose a general state sales tax on goods or most services. Your LLC won't collect or remit New Hampshire sales tax on in-state sales. If your LLC sells into other states and meets those states' economic nexus thresholds, you may need to collect and remit sales tax in those states.
No. New Hampshire does not impose a general state income tax on wages or business profits passed through to members. However, the LLC itself is subject to the Business Profits Tax at the entity level, and certain interest and dividend income may be subject to the New Hampshire Interest and Dividends Tax depending on how distributions are structured.
No. New Hampshire does not impose a franchise tax on LLCs.
Yes. If you expect to owe $1,000 or more in federal taxes for the year, the IRS requires you to make quarterly estimated payments covering federal income tax and self-employment tax. Most LLC members pay estimated taxes 4 times a year. New Hampshire state estimated tax payments may also apply depending on your Business Profits Tax liability. A tax professional can help you figure out the right amounts.
By default, a New Hampshire LLC doesn't pay federal income tax at the entity level. Members pay federal income tax on their share of profits through their personal returns — on Schedule C for single-member LLCs or via Schedule K-1 from Form 1065 for multi-member LLCs. Active members also owe federal self-employment tax at 15.3% on net earnings. If the LLC has employees, it owes federal payroll taxes as well.
