tax consequence on transferring rental properties from family trust to LLC in NH

[bluebird]

I live in MA and have a few rental properties in NH. I use to report rental income in schedule E and file MA income tax on that as there is no income tax in NH. If I transfer rental properties to LLC, will there be any tax consequences in NH? I know there is no individual income tax, but not sure about rental income from properties under LLC. Please help. 

[DianeW777]

Perhaps.  In New Hampshire (NH) there is a Business Profits Tax (BPT) that may be required.

• Who pays BPT? Any business organization, organized for gain or profit carrying on business activity within the State is subject to this tax. However, organizations with $50,000 or less of gross business income from all their activities are not required to file a return. For taxable periods ending on or after December 31, 2022, this filing threshold is increased to $92,000 

If this is a Single Member Limited Liability Company (SMLLC) there are FAQs that will assist you. The rules for the BPT would apply to determine filing requirement if applicable.