Running a business solo? Let’s get the taxes right.
Small business tax preparation for sole proprietors and single-member LLCs across New Hampshire: every deduction claimed, and a clear read on the state business taxes.
Chris Brown, Enrolled Agent
You work with me directly, start to finish.
How we prepare small business and LLC tax returns
We prepare federal and state returns for one and two person businesses: sole proprietors, single-member LLCs, and the Schedule C that rides on your 1040. We find the deductions you have earned, set up the right retirement plan and estimated payments, and tell you plainly if your business has crossed into New Hampshire business tax.
Most of the businesses we work with are one or two people: a cleaner, a handyman, a consultant, a freelancer who went out on their own. The tax side gets complicated faster than anyone warns you, and small misses add up. We prepare it right so you can get back to the work.
Chris Brown, Enrolled Agent
You work with me directly, start to finish.
Whether you searched for a small business accountant, a CPA, or just someone who knows their way around a Schedule C, NH Tax Advisors is led by Chris Brown, a federally licensed Enrolled Agent, and small business returns are a large part of what we do every year.
Are you sure you’re claiming everything you’ve earned?
When you run a one or two person business, the hardest part of taxes is not the form, it is not knowing what you are leaving on the table. You are not sure whether that equipment should have been expensed all at once or spread over years, whether you are in the right retirement plan, or whether you should have set the business up differently. And in the back of your mind is a worry that you have crossed some New Hampshire business tax line you did not know existed. Left alone, those questions do not answer themselves. The same deductions get missed and the same money gets overpaid, quietly, year after year. We go through the return line by line, claim what the law lets you claim, and tell you plainly where you stand on the New Hampshire side.
- Schedule C and single-member LLC returns, prepared and filed
- Every deduction you have earned, including the home office, vehicle mileage, and equipment
- Self-employment tax and quarterly estimates planned ahead, so April is not a surprise
- Your entity setup and prior elections on file, so each season does not start from zero
- Section 179 expensing weighed against depreciation on the equipment you buy
- The right retirement plan for your size, whether that is a SEP-IRA or a Solo 401(k)
“Having started a small business several years ago it was very frustrating to find out that I had not been as dialed in on taxes as I thought. Chris demonstrated professionalism and patience walking through what to do.”
How we prepare your business return
- Get the full picture. We start with your income, your expenses, and how the business is set up, so we are working from what actually happened.
- Find what you have earned. We work through the deductions and the depreciation choices, then check the retirement plan and estimated payments, so nothing that lowers the bill gets left out.
- File and plan ahead. We file the federal and any state return, then set you up for next year with quarterly estimates and cleaner recordkeeping.
When you buy equipment, timing the deduction matters
Buy a piece of equipment for the business and you have a choice about when you deduct it. Section 179 lets you deduct the full cost the year you put it to work. Regular depreciation spreads that same cost across the useful life of the equipment, a piece at a time. Both get you the whole deduction eventually. The difference is when, and when can matter a lot, because a dollar deducted this year is worth more than the same dollar spread over the next five or six. Here is what that looks like on a real purchase.
Section 179 versus depreciation on a $25,000 machine
Say you buy $25,000 of equipment for the business this year. Here is roughly how the two approaches deduct it:
| Section 179 (expense now) | Regular depreciation | |
|---|---|---|
| Year 1 deduction | $25,000, the full cost | about $5,000 |
| Years 2 and on | Nothing left to deduct | the remaining $20,000, spread across the following years |
| Deduction in hand this year | The whole $25,000 | A fraction of it |
Section 179 puts the entire deduction on this year’s return, which lowers this year’s income and self-employment tax right away. Depreciation gets you there too, just slowly. If you had a strong year and want the deduction now, Section 179 usually wins. If you would rather save the deduction for years you expect to earn more, spreading it can be the smarter move. That is the call we make with you, purchase by purchase. The annual Section 179 limit is $2.5 million for 2025, so a purchase this size is fully covered.
Let’s make sure your equipment lands the deduction in the right year.
Not sure whether to expense a big purchase this year or spread it out? That is exactly the kind of question worth a quick call before you file.
If your business grows, watch the New Hampshire business tax line
New Hampshire does not tax your wages, and it does not tax most small business owners at all. But the state does have two business taxes that switch on once a business gets big enough, and plenty of owners cross the line without realizing it. They are worth knowing before you get there, not after.
The two New Hampshire business taxes, and when they apply
For tax periods beginning in 2025, here is roughly where each New Hampshire business tax starts, per the New Hampshire Department of Revenue Administration:
| NH business tax | Starts when | What it applies to |
|---|---|---|
| Business Profits Tax (BPT) | gross business income over about $109,000 | roughly 7.5% on the business’s taxable profit |
| Business Enterprise Tax (BET) | gross business receipts over about $298,000 | a smaller tax on the wages, interest, and dividends the business pays out |
Below those levels, most one and two person businesses owe neither. The point is not to worry about them early, it is to know the line is there so a good year does not turn into a surprise filing. When your numbers get close, we tell you, and we file the New Hampshire returns when you actually owe them.
Let’s check where your business sits against these thresholds.
If you are truly a business of one, with no employees and no entity, the return often lives on your personal 1040 as a Schedule C, and our self-employed tax page speaks to that directly. If your business income sits alongside a W-2, investments, or a spouse’s return, see individual tax preparation. And if you have a year or two you never filed for the business, start with back taxes and unfiled returns. You do not have to be next door to work with us. We prepare business returns for owners across New Hampshire, including Manchester and Bedford, mostly by secure portal, phone, and video.
A few things small business owners ask before they call:
Frequently asked questions
Can I deduct the full cost of equipment the year I buy it?
Usually, yes. Section 179 lets you deduct the full cost of qualifying equipment in the year you put it to work, instead of depreciating it over several years. There is an annual limit, but it runs into the millions of dollars, so most small business purchases are fully covered. The real question is timing: whether taking the whole deduction now or spreading it out saves you more, and we help you make that call.
Can I deduct what it cost me to start the business?
Yes, within limits. You can generally deduct up to $5,000 of startup costs in your first year, things like market research, setup, and professional fees you paid before you opened. Anything above that gets deducted gradually over the following years. The catch is that these are first-year costs, so it helps to have kept the receipts from before you were officially in business. Bring them and we will tell you which ones qualify.
I have a single-member LLC. Does that change how my federal taxes work?
On its own, not much. For federal taxes a single-member LLC is "disregarded," which means the IRS treats it like a sole proprietor: your business income still goes on a Schedule C with your personal return, and you still pay self-employment tax on the profit. The LLC protects you legally, but by itself it does not lower your tax bill. The change that can lower it is electing to be taxed as an S corporation, which can reduce self-employment tax once your profit is high enough to justify it. Whether you are there yet is worth a real look, and we run the numbers before you file any election.
SEP-IRA or Solo 401(k): which one lets me put away more?
It depends on your income. A SEP-IRA is the simpler of the two and lets you contribute up to about 20% of your net self-employment earnings. A Solo 401(k) usually lets you save more at a given income, because you make both an employee contribution and an employer contribution, and it allows Roth contributions too. If you are earning enough that the SEP feels limiting, the Solo 401(k) is often the better tool. We will look at both against your actual numbers and tell you which fits.
I pay people to help me. Do I have to send them 1099s?
Often, yes. If you paid an unincorporated contractor $600 or more during the year for business work, you generally have to send them a 1099-NEC and file a copy with the IRS, due at the end of January. Payments to corporations, and payments you made through a card or a payment app, are usually handled differently. The easiest fix is to collect a W-9 from anyone you hire before you pay them, so you have what you need in January instead of scrambling for it.
The people I pay, are they contractors or employees?
The test is control. If you direct how, when, and where the work gets done, the person is usually an employee; if they run their own business and set their own methods, they are usually a contractor. It matters because employees mean payroll tax and withholding, while contractors get a 1099. Getting it wrong is one of the more expensive mistakes a small business can make, so if you are unsure about someone you pay, it is worth settling before tax time.
Want to dig into the IRS’s own guidance? These are the pages worth bookmarking.
Where to learn more
- IRS: Small Business and Self-Employed Tax CenterThe IRS’s hub for small business owners, covering recordkeeping, self-employment tax, deductions, and the forms you file.
- IRS: Publication 946 (How To Depreciate Property)The rules behind Section 179 expensing and depreciation, including which property qualifies and the annual limits.
- IRS: Retirement Plans for the Self-EmployedHow SEP-IRAs and Solo 401(k)s work, what you can contribute, and how they lower your taxable income.
What clients say
Real reviews from real Southern NH clients
“I truly cannot say enough good things about my experience with Chris & Maria at NH Tax Advisors! I came to them with a rather daunting & messy self-employed tax situation, needing resolution for some previous years' filings.”
“We had an unexpected situation this tax season when our original accountant suddenly became ill and had to retire. My husband and I were scrambling to find someone new, especially so close to the deadline.”
“I had a great experience working with Chris Brown. He was incredibly easy to work with and always very reachable. He would respond within minutes or at most a few hours whenever I had a question.”
Talk to your tax professional today
Call to talk through your tax situation with a licensed tax pro who’ll remember you next year.