New Hampshire has no personal income tax and no sales tax, a combination only a handful of states can claim. The tradeoff is a business-level tax that kicks in once your LLC crosses a revenue threshold, so it's not quite the tax-free deal it first appears to be. Here's what it takes to start a business in New Hampshire in 2026.
1. Which business structure fits you?
Before you file anything, it helps to know what you're actually choosing between.
- Sole proprietorship. No filing required to start, and you and the business are legally the same entity. Simple, but you're personally liable for whatever the business owes.
- Partnership. Two or more people running a business together, with the same liability exposure as a sole proprietorship, just split across partners.
- LLC. The most common structure for small businesses in New Hampshire. It separates your personal assets from the business's debts and lawsuits.
- Corporation, either S-corp or C-corp. More paperwork and more formality, usually worth it once you're bringing on investors or multiple shareholders.
For a deeper comparison, see our guide on choosing a business structure.
LLCs and corporations register with the New Hampshire Secretary of State, Corporation Division, the agency that handles business filings statewide. Sole proprietorships and general partnerships don't register there.
2. Register your business
Forming an LLC
You form an LLC in New Hampshire by filing a Certificate of Formation with the Secretary of State. The filing fee is $100 by mail or $102 through the NH QuickStart online portal, and online filings typically process within a few business days.
Every LLC needs a registered agent with a physical New Hampshire address, available during business hours. You can act as your own agent, or hire a commercial service.
New Hampshire doesn't require an operating agreement by law, but it's still worth writing one, particularly for multi-member LLCs, to spell out how decisions and profits get split.
Sole proprietorships and DBAs
Sole proprietorships don't file a Certificate of Formation. If you're operating under a trade name, you'll register it with the Secretary of State for a separate fee.
3. Get an EIN
An Employer Identification Number is free straight from the IRS and takes about 15 minutes online. You'll need one to open a business bank account, hire anyone, or file most business tax forms, even if you're a single-member LLC with no employees.
4. Check licenses and permits
New Hampshire doesn't issue a single general statewide business license, and since there's no sales tax, there's no sales tax permit to worry about either. What you need depends on your industry and city: professional licensing for regulated fields, and local permits some towns require. Our guides on professional licensing by industry and zoning laws for home businesses cover more of this.
5. Understand New Hampshire taxes
New Hampshire doesn't tax wages, salaries, or LLC distributions at the personal level, and the old tax on interest and dividends was fully repealed effective 2025. There's also no state or local sales tax anywhere, one of only five states with that policy.
Where it gets more complicated is at the business level. The Business Profits Tax (BPT), 7.5%, applies once your LLC's gross income crosses roughly $103,000 to $109,000 (the threshold adjusts for inflation). The Business Enterprise Tax (BET), 0.55%, applies separately once your enterprise value base tops around $298,000. Most very small or early-stage LLCs fall under both thresholds and owe neither, but it's worth tracking as you grow.
6. Stay compliant
Every New Hampshire LLC files an Annual Report with the Secretary of State by April 1 each year, starting the year after formation. The fee is $100. Miss it and you'll owe a $50 late fee; continued non-filing can lead to 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, New Hampshire doesn't tax wages, salaries, or LLC distributions, and the old tax on interest and dividends was fully repealed effective 2025.
What is New Hampshire's Business Profits Tax?
A 7.5% tax that applies once your LLC's gross income crosses roughly $103,000 to $109,000. Most very small or early-stage LLCs fall under this threshold and owe nothing.
How much does it cost to form an LLC in New Hampshire?
$100 by mail or $102 online for a Certificate of Formation.
Does New Hampshire have sales tax?
No, one of only five states with no state or local sales tax anywhere.
When is New Hampshire's Annual Report due?
By April 1 each year, starting the year after formation, for $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.