Hawaii is the ideal place to have a balanced lifestyle. After-work surfing sessions make it worth the effort. If you have a great idea and a strong work ethic, Hawaii is a great place to start a business. For tax and legal purposes, it is a good idea to establish a limited liability company (LLC).

This guide will help you navigate setting up an LLC in Hawaii. Continue reading to find out how to get started.

Establishing an LLC in Hawaii

It will make it easier to establish your LLC. Although there are not many steps to establishing an LLC in Hawaii, it is important that you do everything correctly so your company doesn’t get delayed.

Check Name Availability

Before you decide on a name, check it with the Department of Commerce and Consumer Affairs. A unique business name will ensure that no other companies have similar names, which can cause confusion for consumers. It takes only a few seconds to check if your name has been taken.

Enter the name you want to use to register your company. The system will search for all business names in the state. If there are any, a list of matches will be displayed. Make sure your name is not in conflict with any other companies.

You can reserve a name for up to 120 calendar days in Hawaii if you wish to do so. To reserve your entity name, you will need to open a Hawaii Business Express Account. This account costs $10.

Find a registered agent

A registered agent can be any person authorized to accept legal or official documents on behalf of the company. The registered agent in Hawaii can be any person within the organization, or even you. To accept documents, the registered agent must have a physical address in the locality. A post office box is not sufficient.

A local registered agent is required if you are not a resident of Hawaii. One can be hired to represent you. The cost of professional registered agents is usually $50-300 annually. You should ensure that the registered agent you choose is trustworthy and will send the documents as required.

Register Your Web Domain

You will also need to search for the domain name to confirm that it is available. Nothing is more frustrating than trying to establish your site only to find out that another company has registered your name.

You can find popular domain search engines at sites like HostGator or GoDaddy. These websites will let you search for a domain name free of charge. If you find the name you’re looking for, and it’s not already owned by another company, you can buy the domain. Domains can be purchased for 99c to $49.99.

Premium names can be expensive and may cost thousands of dollars. Find the right domain name for your business and reserve it.

Register Your Hawaii LLC

You will need to fill out Form LLC-1 (Articles for Limited Liability Company) in order to register an LLC in Hawaii. This document contains:

  • Company name
  • Mailing address
  • Name and address of the registered agent
  • Names of business organizers
  • The length of the business’s existence
  • Managers’ names and addresses
  • Member liability

Registering your LLC in Hawaii through the Hawaii Department of Commerce and Consumer Affairs Business Registration Division will cost $50. There is an additional $1 State Archives fee. Online filing is the fastest method to complete the paperwork. Online orders can be processed in one to three working days with a $25 expedited processing fee. If you do not need your order expedited, it will take 3 to 5 business days for it to process.

You can also mail the forms or file them in person.

You can send documents to:

P.O. Box 40
Honolulu, HI 96810

They can also be delivered in person to:

335 Merchant St., Room 201
Honolulu, HI 96813

It takes seven to fourteen business days for mail-in LLC forms to be processed. Delivering documents in person can take up to five days.

After You Form Your Hawaii LLC

After you have completed the filings, you will need to start filling out the necessary documentation and forms. These are the next steps to set up an LLC.

Make an Operating Agreement

Operating agreements are a document that describes how you plan to manage the LLC. Although it is not required by the state, it is vital because it includes voting rights, manager and member responsibilities, rules for managing the LLC, and details of how ownership can transfer. Either use a template or make one from scratch. This document should be kept in your company’s record binder.

Register for an Employer Identification number

An EIN (tax identification number) is a nine-digit tax identification number (TIN) that can be called a Federal Employer Identification Number or Federal Tax Identification Number. It will enable you to open a bank or file taxes under the LLC name. An EIN can be obtained for free. Apply for an EIN online at the IRS Website with the information from your organization’s articles.

An Employer Identification Number (EIN) is required for any LLC that has more than one member. If an LLC has more than one member, or if it chooses to be taxed like a corporation or Scorp, it will need one.

A single-member LLC with no employees has the option to use the owner’s Social Security Number instead. All other LLCs need an EIN.

Keep a copy of your EIN once you have it.

Obtain Hawaii Tax ID Numbers

To operate your business in Hawaii, you will also need a Hawaii tax ID. You can obtain the tax ID number by completing Form BB-1, State of Hawaii Basic Business Application. This application can be downloaded online at Hawaii.gov.

This is a consolidated tax registration application. This allows you to obtain the necessary state tax, employer licenses, and permits, as well as the Hawaii general excise tax (GET) license. It can also be used for determining your withholding tax account as well as your unemployment insurance (UI), tax account.

Domestic Hawaii LLC Annual Report

Each year, you will need to submit a Hawaii Domestic LLC annual report. You can complete this report online with a $15 filing fee. These annual reports must be filed in the quarter with the anniversary date. Failure to file the annual report within the quarter that contains the anniversary date can lead to a $10 penalty per year and eventually the dissolution or liquidation of the business.

Correction of Filing Mistakes

You can amend any document filed with the Department of Commerce and Consumer Affairs. To amend a document that was filed with the Department of Commerce and Consumer Affairs, you will need to download form X-3 and complete it. You can also attach any new information. There is a $25 charge. The completed form can be emailed, mailed or dropped off at the above addresses.

Your Hawaii LLC can be dissolved

You can file a href=”https://cca.hawaii.gov/breg/files/2015/11/llc-11.pdf”>Form LLC-11 (Articles of Termination) if your company is not operating in Hawaii. Fill out Form LLC-11. You can do this online by visiting the business search section, and then searching for your company name. Next, open the record and search for the Articles of Termination in the appropriate tab. Fill out the form and send it in. Your request may take up to 14 business days to be processed.

Is Hawaii allowed to have a single-member LLC?

Hawaii allows a single-member LLC form to be filed in the state. If you plan to have employees or file taxes as a corporation, S corp, or partnership, make sure to get an EIN.

What is the average time it takes to create an LLC in Hawaii

The processing time for an LLC application can take up to 14 business days. Online filings make it easy to file your LLC application in three to five days. The process can be expedited further for new business owners by paying $25 to have it processed within one to three days.

What is the Hawaii tax treatment of LLCs?

In Hawaii, most LLCs are pass-through entities. The LLC transfers the tax to its members. You have the option of electing to be taxed either as an S corporation or a corporation when you file your taxes.

What tax flexibility can an LLC offer?

LLCs can be taxed in a variety of ways: as sole proprietorships or partnerships, C-corps (C-corps), or Scorps (Scorps). This option allows LLC members to reduce their tax burden.

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