New Hampshire vs North Carolina LLC: fees, taxes, and which to pick
Data last updated: Apr 21, 2026New Hampshire charges $100 to form an LLC; North Carolina charges $125. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.
Over a rolling three-year window, New Hampshire runs about $325 less in total state fees than North Carolina. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.
On speed, North Carolina typically clears standard online filings faster than New Hampshire. Both states offer expedited tiers at an additional cost for filers on tight timelines.
For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.
Key differences at a glance
- New Hampshire costs $25 less to form ($100 vs $125).
- New Hampshire is $100 per year cheaper to maintain ($200 vs $300).
- New Hampshire has no state individual income tax; pass-through LLC income flows to members without a state layer. The other state does tax at the member level.
Where each state fits
For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.
What each state offers that the other does not
Only New Hampshire
- No state income tax
- No state sales tax
Both states
- Online filing
- Paid expedited tier
- No entity-level franchise or LLC tax
- No publication requirement
- Operating agreement not statutorily required
Three-year cost, side by side
Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.
Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).
What it costs under your specific situation
The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.
| Scenario | Year 1 | Each year after | 3-year total |
|---|---|---|---|
| You live in New Hampshire, business operates there No foreign LLC registration needed. You pay New Hampshire fees only. | $300 | $200 | $700 |
| You live in North Carolina, business operates there No foreign LLC registration needed. You pay North Carolina fees only. | $425 | $300 | $1,025 |
| Non-resident forming in New Hampshire with operations elsewhere You pay New Hampshire's fees plus a typical home-state foreign LLC registration of about $200 per year. | $500 | $400 | $1,300 |
| Non-resident forming in North Carolina with operations elsewhere You pay North Carolina's fees plus a typical home-state foreign LLC registration of about $200 per year. | $625 | $500 | $1,625 |
New Hampshire vs North Carolina: full comparison
| Dimension | New Hampshire | North Carolina |
|---|---|---|
| Online filing Can you file the formation document online? | Yes | Yes |
| Online approval time Standard, non-expedited | 10 business days | 3 business days |
| Expedited option Paid fast-track filing | $25 | $100 |
| Annual report Required in addition to tax | Required, $100 | Required, $200 |
| State-imposed annual tax Franchise, privilege, or LLC tax minimum | None | None |
| State income tax On pass-through LLC income at member level | No | Yes |
| Publication requirement Newspaper publication after formation | No | No |
| Operating agreement Required by state statute | Recommended, not required | Recommended, not required |
| Foreign LLC fee Cost to register as a foreign LLC in this state | $100 | $250 |
| State sales tax General statewide rate | None | 4.8% |
Taxes in New Hampshire and North Carolina
How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.
New Hampshire tax
No entity-level franchise tax on LLCs. No state income tax. Corporate rate 7.5%.
North Carolina tax
No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 2.0%.
Ongoing compliance
The recurring filings each state requires after formation.
New Hampshire
Annual report $100, due 04/01 each year. Registered agent required in New Hampshire.
North Carolina
Annual report $200, due 04/15 each year. Registered agent required in North Carolina.
Formation process, side by side
What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.
New Hampshire
- Check business-name availability on the New Hampshire entity search.
- Appoint a registered agent with a physical New Hampshire street address.
- File Certificate of Formation (Form LLC-1) for $100.
- Wait for approval. Online typically 10 business days. Paid expedite from $25.
- Adopt an operating agreement (recommended, not required by New Hampshire statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $100 when it comes due.
North Carolina
- Check business-name availability on the North Carolina entity search.
- Appoint a registered agent with a physical North Carolina street address.
- File Articles of Organization for Limited Liability Company (Form L-01) for $125.
- Wait for approval. Online typically 3 business days. Paid expedite from $100.
- Adopt an operating agreement (recommended, not required by North Carolina statute).
- Apply for a federal EIN (free from the IRS).
- Open a business bank account to separate personal and business finances.
- File your first annual report and pay $200 when it comes due.
Before you pick either state
A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.
Registered agent is non-negotiable. Both New Hampshire and North Carolina (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.
Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in New Hampshire or North Carolina does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.
EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.
Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.
Agency contacts
New Hampshire Secretary of State, Corporation Division
- Website
- www.sos.nh.gov/corporations-0
- Phone
- (603) 271-3246
- corporate@sos.nh.gov
- Corporation Division, 107 North Main Street, Room 204, Concord, NH 03301-4989
- Office
- State House, 107 North Main Street, Room 204, Concord, NH 03301
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
North Carolina Secretary of State, Business Registration Division
- Website
- www.sosnc.gov/divisions/business_registration
- Phone
- (919) 814-5400
- biz@sosnc.gov
- P.O. Box 29622, Raleigh, NC 27626-0622
- Office
- 2 South Salisbury Street, Raleigh, NC 27601-2903
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
New Hampshire Department of Revenue Administration
- Website
- www.revenue.nh.gov
- Phone
- (603) 230-5000
- Governor Hugh Gallen State Office Park, 109 Pleasant Street (Medical and Surgical Building), Concord, NH 03301
- Office
- 109 Pleasant Street, Concord, NH 03301
- Hours
- 8:00 AM to 4:30 PM Eastern, Monday to Friday
North Carolina Department of Revenue
- Website
- www.ncdor.gov
- Phone
- (877) 252-3052
- P.O. Box 25000, Raleigh, NC 27640-0640
- Office
- 501 N. Wilmington Street, Raleigh, NC 27604
- Hours
- 8:00 AM to 5:00 PM Eastern, Monday to Friday
Frequently Asked Questions
-
Is it cheaper to form an LLC in New Hampshire or North Carolina?
New Hampshire is cheaper at formation ($100) than North Carolina ($125). Ongoing costs are also different: $200 vs $300 per year. Total over three years: $700 vs $1,025.
-
Can I form an LLC in New Hampshire if I live in North Carolina?
Yes, but your North Carolina business will almost certainly need to register as a foreign LLC in North Carolina too, which means paying North Carolina's foreign registration fee and any ongoing North Carolina obligations on top of the New Hampshire ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
-
How long does it take to form an LLC in New Hampshire vs North Carolina?
New Hampshire online: 10 business days; North Carolina online: 3 business days. New Hampshire offers paid expedite from $25. North Carolina offers paid expedite from $100.
-
Which state has lower taxes for an LLC, New Hampshire or North Carolina?
New Hampshire: no state income tax, no entity-level franchise or LLC tax. North Carolina: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
-
Do both states require a registered agent?
Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. New Hampshire and North Carolina both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
-
Which state should I pick if I run an online business from home?
Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in New Hampshire or North Carolina to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.
Full state guides
More New Hampshire and North Carolina comparisons
More New Hampshire vs ...
Sources
- Filing fee: www.sos.nh.gov/sites/g/files/ehbemt561/files/documents/2023-12/form_ll… · verified April 21, 2026
New Hampshire Form LLC-1 Certificate of Formation: filing fee of $100 payable to State of New Hampshire. Online filing through NH QuickStart adds a $2 electronic processing surcharge (total $102). In-person walk-in filings carry an additional $25 expedite fee. - Expedited filing: sos.nh.gov/corporation-ucc-securities/corporation/forms-and-fees · verified April 21, 2026
New Hampshire Secretary of State Corporation Division: expedited service is available in person in the Customer Lobby for an additional $25 fee, providing next business day processing. Not offered for standard online or mail filings. Recorded the $25 walk-in tier. - Annual report fee: www.sos.nh.gov/corporations-0/file-annual-report · verified April 21, 2026
New Hampshire LLC annual report fee: $100 by mail or $102 online (includes $2 e-processing surcharge). Due April 1 each year. $50 late penalty applies if not filed by April 1. Filed through NH QuickStart. - Foreign LLC registration fee: www.sos.nh.gov/sites/g/files/ehbemt561/files/documents/2023-11/form_fl… · verified April 21, 2026
New Hampshire Form FLLC-1 Application for Foreign Limited Liability Company Registration: filing fee of $100. Matches the domestic Certificate of Formation fee. - Operating agreement requirement: law.justia.com/codes/new-hampshire/title-xxviii/chapter-304-c/section-… · verified April 21, 2026
RSA 304-C:40 Form of Operating Agreement: an operating agreement may be written, oral, or implied by course of dealing or otherwise. New Hampshire does not require LLCs to adopt a written operating agreement. Recorded as not required. - Publication requirement: gc.nh.gov/rsa/html/nhtoc/nhtoc-xxviii-304-c.htm · verified April 21, 2026
New Hampshire RSA Chapter 304-C contains no newspaper publication requirement for LLC formation. Not required. - Corporate income tax rate: www.revenue.nh.gov/taxes-glance/business-taxes · verified April 21, 2026
New Hampshire Business Profits Tax (BPT) rate is 7.5% for taxable periods ending on or after December 31, 2023, and continuing for 2026 per NH DRA. This is the state's functional corporate income tax rate. Not combined with the 0.55% Business Enterprise Tax (BET), which is captured separately in taxes.notes per the playbook's maxCorporateRate = income-only rule. - Sales tax rate: www.revenue.nh.gov/ · verified April 21, 2026
New Hampshire imposes no general state sales tax. A 9% Meals and Rooms (Rentals) Tax applies to prepared food, hotel lodging, and motor vehicle rentals, but no broad retail sales tax exists. - Business name search: quickstart.sos.nh.gov/online/BusinessInquire · verified April 21, 2026
NH QuickStart Business Inquire portal. Use to confirm name availability before filing. - Online filing portal: quickstart.sos.nh.gov/online/Account/LandingPage · verified April 21, 2026
NH QuickStart online business filing portal. Current published online processing time is 10 to 15 business days. Online submissions carry a $2 electronic processing surcharge on top of the $100 filing fee. - Certificate of Formation name: www.sos.nh.gov/sites/g/files/ehbemt561/files/documents/2023-12/form_ll… · verified April 21, 2026
Mail-in paper form titled 'Certificate of Formation' (Form LLC-1), revised October 2018. Online filers complete the equivalent form through NH QuickStart. - Filing fee: www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_57D/G… · verified April 21, 2026
NCGS §57D-1-22(a)(1): Articles of organization filing fee = $125. Statutory citation authoritative; same number appears on the Secretary of State forms and fee schedule. - Expedited filing: www.sosnc.gov/manual/register_a_foreign_business/expedited · verified April 21, 2026
North Carolina Secretary of State expedited filing service: 24-hour service $100 additional; same-day service (received by noon ET) $200 additional. Cheapest tier is 24-hour at $100 reported here. - Annual report fee: www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_57D/G… · verified April 21, 2026
NCGS §57D-1-22(a)(23) and §57D-2-24: Annual report fee $200, due by April 15 each year for LLCs. Online filings add a $2-$3 processing fee. - Franchise tax: www.ncdor.gov/taxes-forms/corporate-income-franchise-tax/corporate-inc… · verified April 21, 2026
NCDOR Corporate Income and Franchise Tax Rates page. Franchise tax applies to C corporations, S corporations, and holding companies – not to default-classified LLCs. Minimum corporate franchise tax is $200, rate $1.50/$1,000 of tax base capped at $500 on the first $1M of base. - Operating agreement requirement: www.ncleg.gov/EnactedLegislation/Statutes/PDF/ByArticle/Chapter_57D/Ar… · verified April 21, 2026
NCGS Chapter 57D (North Carolina Limited Liability Company Act) permits operating agreements in written, oral, or implied form. No statute requires adoption of a written operating agreement. Article 2 governs formation without imposing an operating-agreement requirement. - Foreign LLC registration fee: www.ncleg.gov/EnactedLegislation/Statutes/HTML/BySection/Chapter_57D/G… · verified April 21, 2026
NCGS §57D-1-22(a)(4): Application for certificate of authority for a foreign LLC = $250 filing fee. - Publication requirement: www.ncleg.gov/EnactedLegislation/Statutes/PDF/ByChapter/Chapter_57D.pd… · verified April 21, 2026
North Carolina's LLC Act (Chapter 57D) has no newspaper publication requirement for formation. - Business name search: www.sosnc.gov/search/index/corp · verified April 21, 2026
North Carolina Secretary of State business entity search. Confirm name availability before filing Form L-01. - Sales tax rate: www.ncdor.gov/taxes-forms/sales-and-use-tax/sales-and-use-tax-rates/cu… · verified April 21, 2026
NCDOR Current Sales and Use Tax Rates page. Statewide state rate is 4.75%; combined county rates range 6.75% to 7.50%. - Corporate income tax rate: www.ncdor.gov/taxes-forms/corporate-income-franchise-tax/corporate-inc… · verified April 21, 2026
NCDOR confirms 2.00% corporate income tax rate for tax years beginning in 2026. Rate schedule (2021 budget bill S.B. 105): 2.50% (2022-2024), 2.25% (2025), 2.00% (2026-2027), 1.00% (2028), 0% (2029+). Applies to C-corps and LLCs electing corporate treatment.