Beginning with tax periods that end on or after December 31, 2022, business taxpayers with gross sales of $92,000 or less are NOT required to file a Business Profits Tax return. Previously, this was $50,000.
This is an obvious planning opportunity for small businesses that will no longer have to pay to prepare a New Hampshire return, since it’s no longer required.
Similarly, if you rent your LLC owned real estate to your own company, we would recommend keeping the rent down under $50,000 a year, so as to avoid the LLC having to file a New Hampshire Business Profits tax and potentially be subject to this 7.7% tax on the net income from the rental.
If you’re paying regular rent from your business to your LLC, consider raising the amount of ‘reasonable’ rent you are paying, beginning in 2022, while staying below the $92,000 threshold.
If you’d like to learn more about the updated filing threshold, or have any other question about managing your business, finance, and taxes in New Hampshire, call us today or visit www.appletreebusiness.com