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franchise tax

A franchise tax is a state tax on businesses and other entities (corporations, limited liability companies, trusts, etc.) that are formed in or doing business in a state.

A franchise tax is said to be a tax on the privilege of doing business in a state and is sometimes referred to as a privilege tax. The amount of tax due is often calculated as a percentage of a business’s income, for example.

In New Hampshire, there is no specific tax referred to as a 'franchise tax' or 'privilege tax' on businesses. Instead, the state imposes two main business taxes: the Business Profits Tax (BPT) and the Business Enterprise Tax (BET). The BPT is a tax on income and applies to businesses with gross income over a certain threshold. As of the knowledge cutoff in 2023, the BPT rate is 7.6%. The BET is a tax on the enterprise value of a business, which includes compensation paid to employees, interest, and dividends. The BET rate is 0.6%. These taxes apply to businesses operating within the state, including corporations, partnerships, limited liability companies, and sole proprietorships. It's important for businesses to consult with an attorney or a tax advisor to understand their specific tax obligations in New Hampshire.

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Taxes

franchise tax

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Taxes

franchise tax

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