Massachusetts LLC vs New Hampshire LLC (2026)
Written for owners based in Massachusetts.
Verdict: for most owners, form where the business is based
New Hampshire charges $100 to form and $100 a year to report, $200 in year one against $1,040 in Massachusetts, and it levies no broad personal income tax. It does tax the LLC itself: Business Profits Tax at 7.5% once gross business income passes $109,000, and Business Enterprise Tax at 0.55% above a $298,000 base, both at entity level. Massachusetts leaves a default pass-through untaxed at that level and takes $520 a year instead. A New Hampshire LLC trading here still owes $500 to register in Massachusetts.
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Compare Massachusetts LLC vs New Hampshire LLC on filing fees, taxes, privacy laws, and annual costs. Find out which state is actually better for your business.
By Edmond Hui · Last updated: September 23, 2026
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| Factor | Massachusetts | New Hampshire |
|---|---|---|
| Filing Fee | $500 by mail, $520 online (mandatory $20 expedite fee) | $100 |
| Processing Time | Not published by the state | Within 30 days (paper) |
| Annual Report Fee | $500 by mail, $520 online | $100 |
| Annual Report Due | Anniversary date | April 1 |
| State Income Tax | Yes | No |
| Anonymous LLC | No | No |
| Publication Requirement | No | No |
| Foreign LLC Cost (if forming out-of-state) | N/A, you're in your home state | $500 + registered agent ~$150/yr |
Full fee breakdown for either state: Massachusetts LLC cost and New Hampshire LLC cost. Owner privacy options for either state: Massachusetts anonymous LLC guide and New Hampshire anonymous LLC guide.
Business Climate: Massachusetts vs New Hampshire
| Factor | Massachusetts | New Hampshire |
|---|---|---|
| 5-year business survival rate | 52.7% (#18 of 51) | 47.7% (#40 of 51) |
| Business application growth (2026 YTD (Jan to Jul) vs 2025 YTD (same months)) | +11.9% YoY (#21 of 51 by volume) | +26.1% YoY (#42 of 51 by volume) |
Sources: U.S. Bureau of Labor Statistics, Business Employment Dynamics · U.S. Census Bureau, Business Formation Statistics (BFS)
Compare LLC Costs: Massachusetts vs New Hampshire
Massachusetts
New Hampshire
A figure shown as "from" is the least the state can charge, not a price. Tennessee's report is $300 for up to six members and $50 for each member above six, its franchise tax is the greater of $100 or 0.25% of Tennessee net worth, Wyoming's report is the greater of $60 or $.0002 per dollar of in-state assets, Kentucky's entity tax is $175 up to $3 million of gross receipts and graduated above it, and New York's annual filing fee is graduated on New York source gross income. A total that contains one of those is shown as "from" for the same reason. Costs include every mandatory state charge: the filing fee, the report fee (annualised where a state files biennially), any state entity-level tax shown in its own row above, a one-time publication cost where the state publishes a rate for it, and any one-time registration charge a state requires before the LLC may trade. Two exclusions follow from that wording. Arizona and Nebraska require publication and publish no rate, so no newspaper cost is carried for either and their totals are not the whole cost. Alaska's $50 annual state business licence is a separate charge from the Secretary of State fees and is not carried here either. Annualising makes the 1, 3 and 5 year rows a cost of ownership rather than a payment schedule: a biennial state charges its whole report fee in the years it falls due and nothing in between. Entity-level taxes that only apply after a corporate election, or above an owner or income threshold, are excluded and flagged on the state's own cost page. New York's publication cost is carried at a $250 floor, roughly $200 of newspaper cost in a low-cost county plus the $50 Certificate of Publication fee. No county-clerk-designated New York City newspaper publishes a rate card, so the four-figure NYC estimates in wide circulation cannot be traced to a primary source and are not asserted here; budget for materially more than the floor if you file in a NYC county. Every fee was verified against the state's own fee schedule, statute, or revenue authority on 29 July 2026. Excludes registered agent and legal fees. For informational purposes only, not legal or tax advice.
Filing Fees & Formation Costs
Massachusetts charges $520 to form an LLC, while New Hampshire charges $100. New Hampshire is $420 cheaper upfront. The cost that usually gets overlooked: if you form in New Hampshire but operate in Massachusetts, you must also register as a foreign LLC in Massachusetts (a $500 filing) and maintain a registered agent in New Hampshire (typically around $150 per year). That puts the realistic first-year cost of the New Hampshire route at roughly $750, versus $520 for simply forming in Massachusetts. Only one side of this comparison is knowable: New Hampshire publishes a standard turnaround (within 30 days, paper), while Massachusetts publishes no standard processing time, so the two can't be ranked against each other on speed.
Taxes: Massachusetts vs New Hampshire
New Hampshire has no personal income tax while Massachusetts does, but forming your LLC in New Hampshire won't change that. LLC profits pass through to you and are taxed where you live and operate (in Massachusetts), not where the LLC is registered, so a New Hampshire LLC offers no income-tax savings for a Massachusetts-based business. Massachusetts taxes wage and pass-through income at 5.0%, plus a 4% surtax on taxable income above the inflation-adjusted threshold ($1,107,750 for tax year 2026). No separate franchise or excise tax on LLCs taxed as partnerships/disregarded entities, but the mandatory $500 annual report fee is among the highest in the nation. Business Profits Tax of 7.5% applies to LLCs with gross business income over $109,000 (threshold for periods beginning on/after 1/1/2025), and Business Enterprise Tax of 0.55% applies over $298,000 of gross receipts or enterprise value tax base. Both beyond the $100 annual report fee.
Privacy & Asset Protection
Neither Massachusetts nor New Hampshire offers anonymous LLC formation: both states require owner or manager information on public filings. The Certificate of Formation doesn't require member/manager names, but New Hampshire law requires the annual report to list the names and business addresses of the LLC's managers or, if there are no managers, at least one member, so ownership/management can't stay off all routine public filings. Business owners who prioritize privacy typically form a holding company in a state like Wyoming or New Mexico instead. Both states provide charging-order protection for LLC members, and for most small businesses the practical difference in asset protection between the two is minimal.
Annual Maintenance Costs
Massachusetts LLCs file an annual report ($520, due in the anniversary month), and New Hampshire LLCs file an annual report ($100, due April 1). If you form in New Hampshire while operating in Massachusetts, you maintain filings in both states, New Hampshire's report plus Massachusetts's equivalent for your foreign registration, and pay a New Hampshire registered agent roughly $150 per year. Counting report fees, the agent and any entity-level tax, that brings the New Hampshire route to roughly $770 a year, versus about $520 to keep a domestic Massachusetts LLC in good standing. The taxes inside those totals: No separate franchise or excise tax on LLCs taxed as partnerships/disregarded entities, but the mandatory $500 annual report fee is among the highest in the nation. Business Profits Tax of 7.5% applies to LLCs with gross business income over $109,000 (threshold for periods beginning on/after 1/1/2025), and Business Enterprise Tax of 0.55% applies over $298,000 of gross receipts or enterprise value tax base. Both beyond the $100 annual report fee.
When New Hampshire Actually Makes Sense
Forming in New Hampshire makes sense in a few specific situations: your business genuinely operates in New Hampshire, with a real office, employees, or property there, or you're relocating to New Hampshire in the near future, which would also move you out of Massachusetts's personal income tax. For a typical small business based in Massachusetts, none of these usually apply. Registering a New Hampshire LLC to do business back home means $500 in Massachusetts foreign-registration fees, on top of New Hampshire's $100 formation fee, while Massachusetts's own annual report runs $520 a year and is due in the anniversary month. When in doubt, form where you actually do business.
Frequently Asked Questions
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Sources
Each entry below is a document recorded in our verified sources, and each entry says what the document is. Some statutory text is read from an accurate mirror rather than from the state's own host, and those say so. Where we hold the citation but no stable public link, the citation is printed on its own rather than pointed at a guessed address.
- New Hampshire statute: RSA 304-C:31 (certificate of formation)
- New Hampshire statute: RSA 304-C:194 (annual report contents)
- sec.state.ma.us/divisions/corporations/filing-by-subject/limited-liability/corporations-limited-liability-company.htmMassachusetts Secretary of the Commonwealth, Corporations Division: business entity filings
- sec.state.ma.us/divisions/corporations/download/Fee_Schedule.pdfMassachusetts LLC filing fees
- sos.nh.gov/corporations-0New Hampshire Secretary of State: business entity filings
- gc.nh.gov/rsa/html/XXVIII/304-C/304-C-191.htmNew Hampshire LLC filing fees
Edmond Hui · Founder, MyStateLLC
Edmond Hui is a software engineer and serial entrepreneur based in New York who has founded multiple online businesses across e-commerce, media, and information publishing. Before transitioning into tech, he spent years as a commercial real estate professional closing deals totaling over 100,000 square feet, giving him firsthand experience with business formation and entity structuring. He built MyStateLLC to provide the free, state-specific LLC guidance he wished existed when forming his own companies.