New Hampshire · LLC tax election
New Hampshire LLC: S corp or C corp?
New Hampshire is the state where the S election saves nothing on state business tax.
See New Hampshire at a glanceShort answer
New Hampshire taxes LLCs, S corporations and C corporations alike at the entity level: a 7.5% business profits tax plus the business enterprise tax. An S election does not take your company out of either tax, so the state savings from electing S are zero.
Last checked .New Hampshire at a glance
| Question | New Hampshire |
|---|---|
| S election recognized? | No, New Hampshire does not follow the federal election1 |
| Separate state form and deadline | No separate state form2 |
| Tax the S corp itself pays | 7.5% of S corp net income3 |
| C corp rate and minimum | 7.5% flat4 |
| Entity tax on a default LLC | 7.5% of income5 |
| Personal income tax | No tax on wages or pass-through income6 |
What is different about New Hampshire?
Most states let an S corporation pass its profit to the owners and stop there. New Hampshire does not. Its business profits tax applies to every business organization, defined to include corporations, partnerships and limited liability companies, and the statute says an S corporation is subject to tax at the entity level, with none of its earnings counted in the owners' own profits. The rate is 7.5% for periods ending on or after December 31, 2023. On top of it sits the business enterprise tax on the enterprise value tax base, which also reaches subchapter S corporations. So whatever you choose federally, you pay both New Hampshire taxes.
Does New Hampshire recognize a federal S corp election?
New Hampshire does not recognize the S election for its business taxes: an S corporation is subject to the business profits tax at the entity level, and its earnings are not included in the owners' own business profits. The rate is 7.5%. It also pays the business enterprise tax, which the statute extends to subchapter S corporations. New Hampshire has no separate state S election form, because S corporations are taxed at the entity level.
Does my LLC need a separate New Hampshire election or form?
New Hampshire has no separate state S election: an S corporation is subject to tax at the entity level.2
What does New Hampshire tax an S corp or LLC at the entity level?
- A New Hampshire S corporation pays the 7.5% business profits tax itself, at the entity level.3
- A New Hampshire LLC is a business organization, so it pays the 7.5% business profits tax at the entity level whatever its federal tax status.5
- The BET is 0.55% of the taxable enterprise value tax base of every business enterprise.7
Is a New Hampshire LLC taxed as a C corp ever better?
A New Hampshire C corporation pays the same 7.5% business profits tax on its taxable business profits, plus the business enterprise tax. There is no separate corporate rate and we verified no minimum tax. The statute says each enterprise is taxed as a separate entity unless the chapter allows otherwise, and consolidated returns are not permitted. A single-member C corporation here still pays both taxes, so there is no lighter path through the C route.
Run your New Hampshire numbers
In New Hampshire the S election does not change your state business taxes: the 7.5% business profits tax and the business enterprise tax apply to LLCs, S corporations and C corporations alike. Any payoff comes from the federal side. New Hampshire repealed its tax on interest and dividends effective January 1, 2025, so there is no personal income tax layer to weigh.
Result
How much would a New Hampshire LLC owner save as an S corp?
| Taxed as | At $80,000 profit | At $150,000 profit |
|---|---|---|
| Default LLC | $11,304self-employment tax $11,304 + New Hampshire LLC tax $0 | $21,194self-employment tax $21,194 + New Hampshire LLC tax $0 |
| S corp | $9,344payroll tax $7,344 + New Hampshire S corp tax $0 + $2,000 payroll and prep | $15,770payroll tax $13,770 + New Hampshire S corp tax $0 + $2,000 payroll and prep |
| C corp | $16,064payroll tax $7,344 + New Hampshire tax $0 + federal $6,720 + $2,000 payroll and prep | $28,370payroll tax $13,770 + New Hampshire tax $0 + federal $12,600 + $2,000 payroll and prep |
Assumes a 60% salary9 and a single filer. Income tax is left out. C corp dividends are taxed again. New Hampshire's business profits tax applies to LLCs and S corps alike; it is left out because its owner-pay deduction depends on your facts.
When is the Form 2553 deadline for a New Hampshire LLC, and what if I miss it?
Late relief: federal steps, deadline guide.
What to do next
How to start one, or have us form it from $123.75.
Registered agent $74.25/yr, annual report.
LLC vs S corp guide, election deadline, Form 2553 filed for $165.
More on New Hampshire: How to start a New Hampshire LLC · How to start a New Hampshire corporation · New Hampshire LLC cost · New Hampshire annual report · Annual report late fees by state
File the S-Corp Election for your New Hampshire LLC
We file Form 2553 for a flat $165.
Get the S-Corp ElectionCommon questions
Does New Hampshire recognize an S corporation?
7.5% of taxable business profits for taxable periods ending on or after December 31, 2023, per RSA 77-A:2.
What is the New Hampshire business profits tax rate?
Yes. A limited liability company is a business organization under the statute and is taxed as a separate entity at 7.5% on its business profits, in addition to the business enterprise tax. Staying a default LLC does not exempt you from either tax.
What is the New Hampshire business enterprise tax?
0.55% of the taxable enterprise value tax base for taxable periods ending on or after December 31, 2022, per RSA 77-E:2. The statute covers business enterprises including subchapter S corporations.
Does my New Hampshire LLC pay tax if it stays a default LLC?
Yes. A limited liability company is a business organization under the statute and is taxed as a separate entity at 7.5% on its business profits, in addition to the 0.55% business enterprise tax. Staying a default LLC does not exempt you from either tax.
Sources 10 links, checked Nov 6, 2026
- New Hampshire does not pass S corporation income through for its business taxes: an S corporation pays the business profits tax itself, at the entity level. gc.nh.gov, checked Nov 6, 2026
- New Hampshire has no separate state S election: an S corporation is subject to tax at the entity level. gc.nh.gov, checked Nov 6, 2026
- A New Hampshire S corporation pays the 7.5% business profits tax itself, at the entity level. gc.nh.gov, checked Nov 6, 2026
- A New Hampshire C corporation pays a 7.5% business profits tax on its taxable business profits. gc.nh.gov, checked Nov 6, 2026
- A New Hampshire LLC is a business organization, so it pays the 7.5% business profits tax at the entity level whatever its federal tax status. gc.nh.gov, checked Nov 6, 2026
- New Hampshire repealed its tax on individuals' interest and dividend income (Chapter 77, taxation of incomes) effective January 1, 2025, and has no other individual income tax. gc.nh.gov, checked Nov 6, 2026
- The BET is 0.55% of the taxable enterprise value tax base of every business enterprise. gc.nh.gov, checked Nov 6, 2026
- IRS: Form 1120 instructions, C corp rate irs.gov, checked Nov 6, 2026
- IRS: S corp reasonable compensation irs.gov, checked Nov 6, 2026
- IRS: Form 2553 instructions irs.gov, checked Nov 6, 2026
Last verified Nov 6, 2026.
This page explains the rules; it is not tax advice. Run your numbers with a CPA or enrolled agent before you elect.
Last verified Nov 6, 2026.