New Hampshire fully repealed its Interest and Dividends Tax for taxable periods beginning after December 31, 2024. Combined with no wage income tax and no sales tax, that makes the state genuinely more attractive for individual LLC owners starting in 2025 than it was a year earlier.
It doesn't mean zero business tax: New Hampshire still applies its Business Profits Tax and Business Enterprise Tax to active business income earned in the state.
TL;DR
- The 2025 tax shift: New Hampshire's Interest and Dividends Tax is fully repealed for periods after December 31, 2024, but the Business Profits Tax and Business Enterprise Tax still apply to active NH business income.
- Step 1, name: your LLC name must include "Limited Liability Company," "LLC," or "L.L.C.," and you can reserve it for 120 days with Form 1 before filing.
- Step 2, registered agent: RSA 304-C:36 requires a NH resident individual or an authorized entity, with a physical office address matching the registered office.
- Step 3, Certificate of Formation: Form LLC-1 costs $100 by mail or $102 online through NH QuickStart, and there's no publication requirement.
- Step 4, EIN: free from the IRS, online for SSN/ITIN holders, Form SS-4 by phone, fax, or mail for founders without one.
- Step 5, Form 5472: required annually for a 25%+ foreign-owned single-member LLC, even at zero revenue, with a $25,000 minimum penalty for missing it.
- Step 6, ongoing compliance: the Annual Report costs $100 and is due April 1 every year, with a $50 late penalty and a risk of administrative dissolution after two missed years.
Why Form an LLC in New Hampshire
New Hampshire has no general personal income tax on wages or earned income, and no sales tax. The state's most recent change is the full repeal of its Interest and Dividends Tax, effective for taxable periods beginning after December 31, 2024, confirmed on revenue.nh.gov.
For an LLC owner, that means interest and dividend income you'd have owed I&D Tax on in past years is no longer taxed at the state level starting with 2025 periods. That's a real, fairly recent shift, not a longstanding feature most state guides already cover.
It doesn't make New Hampshire a zero-tax state for a business itself. The Business Profits Tax and Business Enterprise Tax still apply to active income an LLC earns from doing business in New Hampshire. We won't cite specific BPT or BET rates here since they change and should be confirmed against the state's current schedule before you file, but budget for both if your LLC operates in the state, not just files there.
Formation itself is inexpensive and fast by design: a $100 filing fee, no publication requirement, and processing that's typically a matter of business days rather than weeks.
Step 1: Choose and Reserve Your LLC Name
Your name has to include a designator and can't already be in use in New Hampshire.
- Include "Limited Liability Company," "LLC," or "L.L.C." in the name itself.
- Check availability first through the NH QuickStart business name search before you file or reserve anything.
- Reserve it with Form 1 ("Application for Reservation of Name") if you're not ready to file the Certificate of Formation yet. The reservation holds the name for 120 days.
- Fee: $15 by mail or $17 online through NH QuickStart.
A reservation isn't required if you're filing right away, but it's worth it if you're still lining up a registered agent or waiting on other paperwork and don't want the name taken in the meantime.
Step 2: Appoint a Registered Agent
Under RSA 304-C:36, every New Hampshire LLC needs a registered agent with a physical office address in the state that matches the registered office on file.
You have two options for who serves in that role:
- A New Hampshire resident individual whose personal address matches the registered office address.
- An entity authorized to do business in New Hampshire, such as a corporation, LLC, or LLP, with a matching business office address.
The statute implies a physical office is required rather than a mailing address alone, though whether a PO box can satisfy any part of this isn't fully confirmed, so don't rely on one without checking directly with the Secretary of State first. If you don't have a New Hampshire address yourself, a commercial registered agent service fills that gap.
Step 3: File Your Certificate of Formation
The Certificate of Formation, Form LLC-1, is the document that legally creates your LLC. You file it with the New Hampshire Secretary of State.
| Item | Detail |
|---|---|
| Filing fee (mail) | $100 |
| Filing fee (online, NH QuickStart) | $102 (includes a $2 electronic surcharge) |
| Publication requirement | None |
| Processing time | Typically several business days, though this can vary; check the Secretary of State's current status notices before assuming a specific timeline |
| Expedited option | $25 in-person expedite at the Concord office lobby only; no confirmed online same-day option |
New Hampshire doesn't require newspaper publication after formation, which keeps total setup costs low compared to states that do. Once the Certificate of Formation is approved, your LLC legally exists and the clock starts on the federal and state obligations covered next.
Step 4: Get an EIN
An EIN (Employer Identification Number) is what the IRS uses to identify your LLC for tax purposes. You need one to open a US bank account and to file taxes, and it's free directly from the IRS.
- Founders with an SSN or ITIN can apply online through the IRS and typically get an EIN the same day.
- Founders without an SSN or ITIN use Form SS-4 by phone, fax, or mail instead, since the online tool isn't available to them.
Getting the responsible-party details right the first time matters more on the manual route, since a rejected submission means starting the wait over.
Step 5: File Form 5472 if the LLC Is Foreign-Owned
If your single-member LLC is 25% or more foreign-owned, the IRS requires an annual Form 5472 filing, even at zero revenue.
- Filed with a pro forma Form 1120, a placeholder corporate return required alongside the 5472, even though the LLC itself owes no separate corporate tax.
- Reports transactions between the LLC and its foreign owner, such as capital contributions or payments for services.
- Applies even when dormant. A low-activity LLC with no revenue still has to file.
- Minimum penalty: $25,000 for a late or missing filing, per form, per year.
Treat this as a fixed annual obligation from the day your LLC is formed, not something to revisit only once revenue starts.
Step 6: Handle Ongoing Compliance
New Hampshire LLCs owe an Annual Report every year, and the state tax picture is where the I&D Tax repeal actually matters.
The Annual Report Deadline
Every NH LLC files an Annual Report with a $100 fee, due April 1 each year regardless of when the LLC was formed.
- Late penalty: $50 if received after April 1, which also puts the LLC into "Not in Good Standing" status.
- Two consecutive missed years can trigger administrative dissolution of the LLC.
What the I&D Tax Repeal Actually Changes
New Hampshire has no general personal income tax on wages, and as of taxable periods beginning after December 31, 2024, no Interest and Dividends Tax either, a change confirmed on revenue.nh.gov. For an LLC owner's personal wage and most personal investment income, that's now zero at the state level.
That's not the same as zero tax on the LLC's business activity. The Business Profits Tax and Business Enterprise Tax still apply to active income earned from doing business in New Hampshire. We're not citing specific rates here since they can change, so confirm current BPT and BET figures directly with NH Department of Revenue Administration before you file, rather than assuming the state is tax-free for the business itself.
Common Mistakes to Avoid
- Assuming New Hampshire has zero business tax: the I&D Tax repeal applies to wages and most personal investment income, not to the LLC's active NH business income, which the BPT and BET still reach.
- Missing the April 1 Annual Report deadline: a $50 late fee and "Not in Good Standing" status follow quickly, and two consecutive misses can lead to dissolution.
- Treating the EIN as the finish line: for a foreign-owned LLC, the EIN is the start of an annual Form 5472 obligation, not the end of the process.
- Using an unverified address for the registered agent: the address has to match the registered office under RSA 304-C:36, and relying on an unconfirmed PO box arrangement risks the filing being rejected.
- Skipping Form 5472 because there's no revenue yet: the filing requirement doesn't depend on whether the LLC has made money.
How FinStackk Helps With Starting Your LLC in New Hampshire
We handle the incorporation steps above, including EIN applications and registered agent service, through Fin-Start. It's built to handle Overseas Direct Investment (ODI) compliance and other cross-border details for founders incorporating from outside the US.
Once your LLC exists, Fin-Tax supports applicable tax filings, including Form 5472, while Complyy identifies and tracks the compliance requirements applicable to the business, including the New Hampshire Annual Report and other state obligations, on a proactive deadline calendar. The platform combines technology, automation, and expert support, giving founders one place to manage these requirements. Book a free demo to see both in action..
FAQ
Does New Hampshire really have no state income tax?
New Hampshire has no general personal income tax on wages or earned income, and as of taxable periods beginning after December 31, 2024, its Interest and Dividends Tax is fully repealed. That covers wages and most personal investment income, but it doesn't mean the LLC itself is tax-free.
Active business income earned in New Hampshire can still be subject to the state's Business Profits Tax and Business Enterprise Tax, so check current rates before assuming zero liability.
How much does it cost to form an LLC in New Hampshire?
The Certificate of Formation costs $100 by mail or $102 online through NH QuickStart, with no publication requirement. Add a registered agent service if you're not serving as your own, plus the $100 Annual Report due every April 1 once the LLC exists. An optional $15 to $17 name reservation and a $25 in-person expedite fee are available if you need them.
What happens if I miss the New Hampshire Annual Report deadline?
Missing the April 1 deadline triggers a $50 late penalty and moves the LLC into "Not in Good Standing" status with the state. If you miss two consecutive years, New Hampshire can administratively dissolve the LLC. Filing on time, or as soon as possible after a missed deadline, is the only way to avoid that outcome.