Form an LLC in New Hampshire: Total Cost & Filing Steps (2026)

Launching Your Startup: Understanding New Hampshire LLC Costs (2026)

Imagine kicking off your new venture with a state-level operational cost of just $102 annually. For many bootstrapped founders, that's the reality of establishing an LLC in New Hampshire. The initial filing for your Certificate of Formation will set you back $102. Subsequently, an annual report, also priced at $102, becomes due each April 1. This means your first year's DIY cost is $102, and over five years, you're looking at a total of $510.

New Hampshire stands out. It's unique for its lack of a state sales tax and, as of 2025, no general personal income tax (the interest and dividends tax was repealed). You also won't encounter a traditional franchise tax. The state does have two business taxes, the Business Enterprise Tax (BET) and Business Profits Tax (BPT), but these only apply once your revenue crosses specific thresholds, like $298,000 for BET and $103,000 for BPT in tax year 2025. For many early-stage businesses, this means zero state-level business taxes beyond that annual report fee.

New Hampshire LLC Expense Breakdown (2026)

Here's a detailed look at potential costs for your New Hampshire Limited Liability Company:

Line item	Cost	Source
Certificate of Formation (Form LLC-1)	$102	sos.nh.gov
Annual Report	$102/yr	sos.nh.gov
Business Enterprise Tax (BET, above $298K threshold)	0.55% of enterprise value	revenue.nh.gov
Business Profits Tax (BPT, above $103K gross)	7.5% of net	revenue.nh.gov
Registered Agent service	$50-$200/yr	sos.nh.gov
Expedite filing	$125	sos.nh.gov
Year 1 total (DIY, below tax thresholds)	$102
Year 1 with commercial RA service	$152-$302
Year 2+ ongoing (DIY, below thresholds)	$102/yr
5-year total (DIY, below thresholds)	$510

These figures were confirmed on 2026-05-16, directly from the New Hampshire Secretary of State and Department of Revenue Administration.

Why New Hampshire Offers Cost-Effective Operations for Small Businesses

New Hampshire's approach to taxation is quite distinct among its Northeast neighbors. It leans heavily on property taxes and business taxes that kick in above specific revenue thresholds, rather than relying on broad income or sales taxes. This structure is particularly advantageous for small LLCs operating below the BET and BPT thresholds, where the state-level operational cost is simply $102 per year.

• No State Sales Tax: New Hampshire is one of only five U.S. states without a statewide general sales tax (the others are Alaska, Delaware, Montana, and Oregon). For LLCs selling tangible goods, this is a significant operational advantage, eliminating the need for sales tax permits, complex filings, and rate management.
• No Personal Income Tax on Wages: As a founder, your salary or W-2 income is not subject to state-level taxation. This directly impacts your personal take-home pay.
• Interest and Dividends Tax Repealed (Effective 2025): Previously, New Hampshire taxed interest and dividend income. However, with the full phase-out effective January 1, 2025 (under HB 2, 2023 session), investment income is no longer taxed at the state level.
• High BET Threshold ($298,000): The Business Enterprise Tax only becomes applicable if your LLC's "enterprise value tax base" (which includes compensation, interest, and dividends paid) surpasses $298,000 in tax year 2025. Below this figure, your BET liability is $0.
• High BPT Threshold ($103,000): Similarly, the Business Profits Tax only applies when your gross business income exceeds $103,000. Below this, you owe $0 BPT.

This combination of factors means a typical small New Hampshire LLC, perhaps with $100,000 in gross revenue and a two-person team, generally pays nothing at the state level beyond the $102 annual report fee. However, it's important to note that above these thresholds, both BET and BPT can apply simultaneously, potentially resulting in one of the higher combined effective business tax rates in the country, around 8% net depending on your structure. This bifurcation makes New Hampshire highly attractive for small LLCs but potentially more costly for mid-sized ones.

Step-by-Step Filing Process (DIY, No Service Needed)

Founders looking to establish their LLC in New Hampshire without third-party services can follow these steps:

1. Select Your Business Name: Start by checking name availability using the New Hampshire QuickStart Business Search. Your chosen name must include "Limited Liability Company," "LLC," "L.L.C.," or "Ltd. Liability Co.," as mandated by RSA § 304-C:33.
2. Appoint a Registered Agent: State law (RSA § 304-C:36) requires your LLC to have a registered agent. This agent must possess a physical street address within New Hampshire. This individual or entity serves as the official point of contact for legal and tax correspondence.
3. Submit Form LLC-1 (Certificate of Formation): The official filing costs $102. You can complete this online via QuickStart for efficiency, or choose to mail it to the NH Secretary of State, Corporation Division, 107 N. Main Street, Concord, NH 03301.
4. Secure a Federal EIN: An Employer Identification Number (EIN) from the IRS is essential for most LLCs, especially if you plan to hire employees or be taxed as a corporation. You can obtain this for free directly from the irs.gov website.
5. Draft an Operating Agreement: While New Hampshire doesn't require you to file this document with the state, RSA § 304-C:40 recognizes it as a binding contract among members. For single-member LLCs, a basic template often suffices. For multi-member LLCs, consulting an attorney for a custom-drafted agreement is highly recommended to clarify roles, responsibilities, and profit distribution.
6. Register for State Taxes (If Applicable): If your LLC anticipates exceeding the BET or BPT thresholds, you'll need to register with the NH Department of Revenue Administration. If you expect to remain below these thresholds, no state-level income-side tax registration is necessary.
7. Apply for Required Licenses: New Hampshire does not impose a general statewide business license. However, specific industries, such as construction, food service, or healthcare, have professional licensing requirements. Check with the relevant New Hampshire licensing board for your particular field.
8. Establish a Business Bank Account: Once your LLC is formed and you have your EIN, you can open a dedicated business bank account. Local banks like Citizens, Bank of New Hampshire, or Northway Bank will typically require your Certificate of Formation, EIN, and operating agreement.
9. File FinCEN BOI Report: Under the Corporate Transparency Act, most new LLCs must file a Beneficial Ownership Information (BOI) report with FinCEN within 30 days of formation. This is a free filing, accessible at fincen.gov/boi.
10. Submit Annual Report: This crucial report is due every April 1, starting the year after your LLC's formation. The filing fee is $102 and can be completed online via QuickStart.

Standard online filings through QuickStart are generally processed within seven business days. For an expedited service, a $125 fee provides a 24-hour turnaround.

New Hampshire 5-Year Cost Projection

Let's look at three typical scenarios for your LLC's state-level costs over five years, depending on your revenue:

• Scenario A (Small LLC, Below All Tax Thresholds):
  For a small operation, only the annual report fee applies.
  Year 1: $102
  Years 2-5: $102 per year x 4 years = $408
  Total 5-Year Cost: $102 + $408 = $510.
  In this scenario, you pay no BET and no BPT. Your state operational cost is remarkably low.

• Scenario B (Mid-Size LLC, $200K Gross, $400K Enterprise Value Tax Base):
  Here, you're above the thresholds. Beyond the $102 annual Secretary of State fee, your LLC would incur significant BPT (7.5% of profits) and BET (0.55% of enterprise value). Even with credits, this could range from $13,000 to $15,000 per year, depending on your profit margins.
  Total 5-Year Cost: $102 (SOS) + ($13,000 to $15,000) * 5 years ≈ $65,000 to $75,000.

• Scenario C (Large LLC, $1M Gross, $2M Enterprise Value):
  A larger entity would face the full impact of both taxes. This could mean $11,000 per year for BET (0.55% of $2,000,000) plus 7.5% of profits for BPT.
  Total 5-Year Cost: $50,000 to $100,000+, heavily dependent on profitability.

It's clear that the state-level cost remains genuinely $102 per year only for the smallest businesses. Once you cross those revenue thresholds, New Hampshire's effective business tax rates become competitive, though the overall structure remains simpler than states juggling sales tax, personal income tax, and franchise taxes.

Frequently Asked Questions for NH Founders

Is it really $102 per year to maintain an LLC in New Hampshire?

Yes, for an NH LLC that remains below the Business Enterprise Tax (BET) threshold of $298,000 and the Business Profits Tax (BPT) threshold of $103,000, the sole state-level expense is the $102 annual report fee. Over five years, a DIY approach under these conditions totals $510. If your business grows beyond these thresholds, additional BET (0.55%) and BPT (7.5%) will apply. Source: sos.nh.gov, verified 2026-05-16.

Does New Hampshire have a state sales tax?

No, it does not. New Hampshire is among five U.S. states that do not levy a statewide general sales tax. This provides a distinct benefit for businesses that sell physical products, as it eliminates the need for sales tax permits, associated filing burdens, and the complexities of varying rates. Source: revenue.nh.gov.

What are the BET and BPT?

The Business Enterprise Tax (BET) is a 0.55% tax that applies to New Hampshire LLCs whose "enterprise value tax base" (which encompasses compensation, interest, and dividends paid) surpasses $298,000 in tax year 2025. The Business Profits Tax (BPT) is a 7.5% tax applied to NH LLCs with gross business income exceeding $103,000. Both thresholds are periodically adjusted. Below these limits, you owe nothing. Above them, both taxes can be levied concurrently. Source: NH Department of Revenue Administration.

Does New Hampshire impose a state income tax?

New Hampshire does not tax wages, salaries, or W-2 income. Furthermore, the Interest and Dividends Tax was fully repealed as of January 1, 2025. This means New Hampshire residents do not pay state tax on their wages or investment income at the personal level. Business-related taxes, BET and BPT, only come into play if your business crosses specific revenue thresholds. Source: revenue.nh.gov.

When is the New Hampshire annual report due?

Your annual report is due by April 1 each year, with the first report due the year following your LLC's formation. The fee is $102. You can file it conveniently online via the QuickStart portal. Late filings incur a $50 penalty, and failing to file for over 12 months can lead to administrative dissolution of your LLC. Source: NH QuickStart.

How long does it take to form an LLC in New Hampshire?

Standard online filings submitted through QuickStart are typically processed within seven business days. An expedited option is available for $125, which guarantees a 24-hour turnaround. New Hampshire does not currently offer same-day or two-hour expedition services. Source: NH SOS Corporation Division.

New Hampshire Compared to Neighboring States

For founders in northern New England, particularly those considering New Hampshire, Massachusetts, or Vermont, the cost differences for an LLC can be substantial:

• New Hampshire: An initial $102 filing fee, followed by a $102 annual report. BET and BPT are only triggered above significant revenue thresholds. For businesses staying below these, the five-year total is $510.
• Massachusetts: Expect a $500 filing fee and a recurring $500 annual report. This totals $2,500 over five years, before even considering other state taxes.
• Vermont: Offers a unique setup, but generally involves higher costs than New Hampshire for basic compliance.

Understanding these structural differences is key for strategic planning. Full data + interactive calculator: llcformationcost.com