New Hampshire charges no state income tax on wages and no state sales tax; the interest and dividends tax was fully phased out by 2025. The IRS default for an LLC is pass-through - single-member LLCs are disregarded entities, multi-member LLCs are partnerships. An S-corp election saves self-employment tax once net income clears $40,000-$60,000. New Hampshire levies Business Profits and Business Enterprise taxes only above statutory thresholds.
A New Hampshire LLC pays no state income tax on wages and no state sales tax, and federally it is a pass-through by default - profit flows to the owners rather than being taxed at the entity level. The interest and dividends tax was fully phased out by 2025. A single-member LLC is a disregarded entity taxed on the owner's personal return, and a multi-member LLC is a partnership. An LLC can elect S-corporation or C-corporation treatment when that lowers total tax. New Hampshire adds no personal state income tax on top of the federal treatment, whichever election the owner makes. The absence of a state income tax on wages means the owner's total tax bill is driven by the federal treatment alone. A US-resident owner reports pass-through profit at the federal bracket, and a non-resident owner is taxed only on income effectively connected to a US trade or business. This makes New Hampshire's tax profile close to the four anonymous states, with privacy as the remaining difference.
By default a single-member New Hampshire LLC is a disregarded entity, taxed on Schedule C of the owner's personal 1040, and a multi-member LLC is a partnership that files Form 1065 and issues K-1s to members. There is no federal entity-level tax in either case. Profit passes through to the owners' personal returns, so the LLC itself pays no federal income tax on ordinary business profit. This default treatment applies automatically at formation; an owner changes it only by electing S-corporation status on Form 2553 or C-corporation status on Form 8832.
New Hampshire charges no state income tax on wages or earned income, and the interest and dividends tax was fully phased out by 2025. Individual owners owe no state income tax on LLC pass-through profit. This is one reason founders consider New Hampshire alongside the anonymous states, which also levy no state income tax on wages. The distinction is privacy, not income tax: New Hampshire matches on tax but publishes owner names, while Wyoming, New Mexico, Delaware, and Nevada keep members and managers off the public record.
New Hampshire levies a Business Profits Tax and a Business Enterprise Tax at the entity level, but both apply only once gross business income clears the statutory filing thresholds. A small single-member LLC below those thresholds files neither. The Business Profits Tax applies to net business income above the filing threshold, and the Business Enterprise Tax applies to a base of compensation, interest, and dividends above its own threshold. Larger LLCs operating in New Hampshire should confirm both thresholds with a US tax preparer. Most small LLCs owe only the $100 annual report as an ongoing state cost. These two taxes fall on the business, not the individual owner, so they do not reintroduce a personal income tax. A founder projecting revenue above the thresholds factors both into the cost of operating in New Hampshire, while a founder who forms an anonymous LLC elsewhere and foreign-qualifies into New Hampshire still faces the same entity-level thresholds on income earned in the state.
An S-corporation election on Form 2553 becomes worthwhile once net business income clears $40,000-$60,000 per year. The reasonable-salary portion of income avoids the 15.3% self-employment tax, saving that rate on the non-salary distribution. Below that income range, the payroll compliance cost of running an S-corp outweighs the self-employment tax savings. The election adds payroll filings, a reasonable-salary requirement, and separate bookkeeping. Anonymousllc.co files the Form 2553 election when a client's income supports it and partners with US tax preparers to run the payroll side.
Default LLC owners pay 15.3% self-employment tax on net business income: 12.4% Social Security up to $168,600 plus 2.9% Medicare with no cap. New Hampshire adds no state income tax on top of that federal amount. An S-corporation election reduces self-employment tax on the non-salary portion of income but adds payroll compliance and a reasonable-salary requirement. For owners below $40,000-$60,000 in net income, the default pass-through treatment is simpler and the payroll cost of an S-corp is not justified yet.
A non-resident-owned New Hampshire LLC owes US income tax only on income effectively connected to a US trade or business. An LLC without US effectively connected income files an information return but owes no US income tax on foreign-earned profit. A foreign-owned single-member LLC files Form 5472 with a pro-forma Form 1120 each year; a multi-member LLC files Form 1065 and issues K-1s. An ITIN is needed when the owner has a personal US filing obligation. Anonymousllc.co provides ITIN service for $299 and partners with US tax preparers familiar with non-resident filings. Many non-resident founders run a US LLC for e-commerce, software, or services delivered from abroad, where the profit is not effectively connected to a US trade or business. In that pattern the LLC files the information returns but owes no US federal income tax, and New Hampshire adds no state income tax either. A US tax preparer confirms the effectively-connected-income analysis for each specific business.
Form 5472 is required for any US disregarded entity with 25% or more foreign ownership. Most non-resident-owned single-member New Hampshire LLCs must file it annually alongside a pro-forma Form 1120. The form reports reportable transactions between the LLC and its foreign owner or related parties. Missing it carries a $25,000 penalty, so non-resident owners treat it as a hard annual requirement even when the LLC owes no income tax. Anonymousllc.co connects clients with US tax preparers who handle the Form 5472 and pro-forma 1120 package.
Under the March 21, 2025 FinCEN interim final rule, domestic reporting companies are exempt from beneficial ownership information reporting. Most New Hampshire LLCs are domestic and currently exempt. Foreign reporting companies - entities formed outside the US that register to do business in a state - remain obligated to file each BOI report with FinCEN. Anonymousllc.co files BOI reports at $150 per report for the entities that still fall under the rule and confirms exemption status for domestic New Hampshire LLCs.
No. New Hampshire charges no state sales tax, so an LLC selling goods or services to New Hampshire customers collects no state sales tax on those transactions. This is a long-standing feature of the state. An LLC selling into other states may still have sales tax obligations where it has economic nexus, regardless of where the LLC is formed. The absence of New Hampshire sales tax applies to in-state transactions; interstate sellers confirm their nexus footprint with a US tax preparer to handle out-of-state sales tax correctly.
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