No personal income tax and no sales tax — New Hampshire is one of the rare states that can say both, and it's a real draw. What that framing tends to skip over is a tax that applies at the business level once your LLC gets past a certain size, so the "tax-free" pitch has an asterisk worth understanding before you assume it applies to you. Here's what launching a business in New Hampshire actually involves in 2026.
1. Which business structure fits you?
Before filing anything, it's worth understanding the tradeoffs between your options.
- Sole proprietorship. Nothing to file, but no legal separation from the business either — you're on the hook personally for what it owes.
- Partnership. Two or more owners, same liability exposure as a sole proprietorship, just divided among the partners.
- LLC. New Hampshire's most popular small-business structure, and for good reason: it keeps your personal assets out of reach of the business's debts and lawsuits.
- Corporation, S-corp or C-corp. More formal, more paperwork, and generally reserved for businesses bringing on investors or multiple shareholders.
Our guide on choosing a business structure covers this comparison in more depth.
LLCs and corporations register with the New Hampshire Secretary of State's Corporation Division, which handles business filings for the entire state. Sole proprietors and general partnerships aren't filing there at all.
2. Register your business
Forming an LLC
A New Hampshire LLC gets formed by filing a Certificate of Formation with the Secretary of State — $100 if you mail it in, $102 through the NH QuickStart online system, with online submissions generally processed within a few business days.
A registered agent at a physical New Hampshire address, reachable during business hours, is required for every LLC. That can be you or a commercial registered agent service.
An operating agreement isn't legally mandatory in New Hampshire, but writing one anyway is a good habit, particularly with more than one member on the LLC, since it locks in how profits and decisions get handled before there's a dispute over either.
Sole proprietorships and DBAs
No Certificate of Formation is needed for sole proprietors. Operating under a trade name means registering it separately with the Secretary of State, for its own fee.
3. Get an EIN
The IRS issues Employer Identification Numbers free of charge, and the online application takes about 15 minutes. Expect to need one to open a business bank account, hire your first employee, or handle most business tax filings — true even for a single-member LLC with no staff.
4. Check licenses and permits
There's no general statewide business license in New Hampshire, and with no sales tax on the books, there's no sales tax permit to register for either. What actually applies to you depends on your industry and your town — some regulated professions need state licensing, and some towns impose their own local permits. Check our guides on professional licensing by industry and zoning laws for home businesses for more.
5. Understand New Hampshire taxes
Wages, salaries, and LLC distributions all go untaxed at the personal level in New Hampshire, and the state's old interest-and-dividends tax was fully repealed as of 2025. Sales tax doesn't exist here either, state or local — New Hampshire is one of only five states that can say that.
The business side of the ledger is more involved. The Business Profits Tax sits at 7.5% and applies once your LLC's gross income passes roughly $103,000 to $109,000 (the exact threshold adjusts for inflation). Separately, the Business Enterprise Tax, at 0.55%, kicks in once your enterprise value base clears around $298,000. Most small or newly formed LLCs stay under both thresholds and owe neither tax, though it's a line worth watching as revenue grows.
6. Stay compliant
New Hampshire LLCs file an Annual Report with the Secretary of State by April 1 each year, starting the year following formation, at a cost of $100. A missed deadline brings a $50 late fee, and letting it go unfiled long enough risks administrative dissolution.
New Hampshire business costs at a glance
| Item | Cost |
|---|---|
| Certificate of Formation (LLC) | $100 mail / $102 online |
| Annual Report (every year, due April 1) | $100 |
| Late filing fee | $50 |
| Registered agent service (optional) | $39 to $150/year |
| EIN | Free (IRS) |
| State income tax (personal) | None |
| Business Profits Tax (if gross income over ~$103K) | 7.5% |
| State sales tax | None |
Frequently asked questions
Does New Hampshire tax personal income?
No. Wages, salaries, and LLC distributions aren't taxed, and the state fully repealed its old interest-and-dividends tax as of 2025.
What is New Hampshire's Business Profits Tax?
A 7.5% tax triggered once your LLC's gross income passes roughly $103,000 to $109,000. Most very small or early-stage LLCs stay below that line and owe nothing.
How much does it cost to form an LLC in New Hampshire?
$100 by mail, or $102 if you file the Certificate of Formation online.
Does New Hampshire have sales tax?
No — it's one of just five states with no sales tax at either the state or local level.
When is New Hampshire's Annual Report due?
April 1 each year, beginning the year after your LLC forms, and it costs $100.
Fees and rates above come from the New Hampshire Secretary of State and Department of Revenue Administration as of 2026, and they do change over time, so double check before you file. None of this is legal or tax advice. Talk to a New Hampshire-licensed attorney or CPA about your specific situation.