How to Start an LLC in Hawaii
To start an LLC in Hawaii, you must file Articles of Organization with the Business Registration Division. You can file the document online, by mail or in person. The Articles of Organization cost $51 in combined fees to file. Once filed with the state, this document formally creates your Hawaii LLC. However, to actually ready the LLC to do business, you must complete several additional steps.
Starting a Hawaii LLC Guide:
Hawaii LLC Filing Options
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Hawaii LLC Articles of Organization free download. When you're done filling out the form, submit it to your state.
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Hawaii LLC Articles of Organization Requirements
To form a Hawaii LLC, you must complete and file the Articles of Organization with the Business Registration Division. See the document below and click on any number to see what information is required in the corresponding section.
Your name has to include “Limited Liability Company” or an abbreviation like “LLC.” You can’t pick a name already in use.
The Articles of Organization ask for a LOT of addresses—principal office address, registered agent address, organizer address, etc. When you hire Northwest, you can keep things simple and use our address information throughout your Articles—it’s much less annoying than having to file amendments every time you need to update an address.
You can choose to list an individual Hawaii resident, or you can hire a business that provides registered agent service—like Northwest.
This address must be the street address in Hawaii where your registered agent will be regularly available. Hire Northwest, and our address will go here.
You’ll need to include the name and address of your organizer. The organizer forms and files your Articles of Organization—but it doesn’t have to be anyone in your LLC. By now, you can probably guess whose address will go here when you hire Northwest.
Most LLCs are “at-will,” which means they continue to exist unless they are dissolved. If you’d like your LLC to end on a certain date, you can put that date in your Articles.
You’ll have to decide whether members or managers will make all the decisions for the company. Most LLCs are member-managed, but if you don’t plan to run the day-to-day operations of your business, you can hand that power over to management.
You’ll need to list the names and addresses of either the initial members (if your LLC is member-managed) or managers (if your LLC is manager-managed).
This section asks whether or not the LLC will be liable for debts and obligations. Since a Limited Liability Company is usually formed to limit liability (it’s in the name!), most people tick the first box in this section, choosing not to be liable.
How much does it cost to start a Hawaii LLC?
$51. The Articles of Organization filing fee is $50, but there is a mandatory $1 State Archive fee for each document filed with the state. You’ll also pay an additional $2.50 if you file online. Need your LLC fast? Expedited processing is an extra $25.
At Northwest, your total out-the-door cost is $278.50 (or $303.50 expedited). This includes state fees, registered agent service and loads of useful forms to help get your business going.
How long does it take to start a Hawaii LLC?
Standard processing takes the Business Registration Division 10 business days. Expedited processing cuts that time down to 3 business days (for an additional $25). Both options are available when you hire Northwest to form your Hawaii LLC.
Does a Hawaii LLC need a registered agent?
Yes, Hawaii requires LLCs to appoint and maintain a registered agent. And while it’s possible to appoint yourself as your registered agent, it can be a tough position.
Life moves slowly in Hawaii. While the slower pace of life is one of the most fantastic things about the 808, it can simultaneously be one of the most difficult—especially if you’re running a business. Sitting for hours in crawling traffic isn’t easy. Waiting for shipping to finally arrive isn’t easy. Sitting behind a desk from 9-5 with the beach just out the door isn’t easy. When it comes to registered agent service, let Northwest do the sitting and waiting, the worrying and hurrying. We’ll scan and send any service of process the same day, so you can run your business on your time.
Create the Hawaii LLC Operating Agreement
Do I need an Operating Agreement?
The law doesn’t require your LLC to have an operating agreement, but you absolutely should. Starting a business may very well be the biggest, riskiest undertaking of your life (unless maybe you hike the Kalalau Trail). The last thing you want to do is shortchange yourself by taking shortcuts.
Why is an Operating Agreement important?
Taking the time to complete an operating agreement may be a bit annoying in the moment, but it’s the most important internal document of your LLC. It says who contributed what, how voting works, how profits and losses will be allocated, and what happens if everything falls apart. Your members and managers will want this information in writing. Future business partners and investors will want this information in writing. Your bank will want to see this information in writing as well. Heck, if you hope to apply for one of Hawaii’s accelerators for startup companies, you’ll need to provide evidence of clear, organized business operations.
Do I have to write the Operating Agreement?
You don’t have to start from scratch. At Northwest, we strongly believe every LLC should have an operating agreement—that’s why we include one for free with every order. We provide loads of other free forms as well, from resolutions to membership certificates. Your business is only as strong as your documents—and we’re proud of our forms at Northwest. We’ve spent years revising and improving our forms, and as a result, over 1 million LLCs and counting have used our free LLC forms:
Get a Hawaii LLC EIN
Do I have to get a tax ID number (EIN)?
Yes—Hawaii’s Department of Taxation mandates that all businesses (except sole proprietorships with no employees) have a FEIN. You’ll need to get your FEIN before you file your Basic Business Application and receive your Hawaii tax ID. You can get a FEIN for free by applying for one directly from the IRS. Or, hire Northwest to complete the application for you.
Open a Bank Account for Your Hawaii LLC
To open a bank account for your Hawaii LLC, you will need to bring the following with you to the bank:
- A copy of the Hawaii LLC Articles of Organization
- The LLC operating agreement
- The Hawaii LLC’s EIN
If there are multiple members in the LLC, you may also want to bring an LLC resolution to open a bank account that states that the person going to the bank is authorized by the members to open the account in the name of the LLC.
We recommend calling your bank ahead of time before going in and asking what their requirements are. Most banks don’t open business accounts nearly as frequently as personal accounts, so some bankers may be unfamiliar with their own bank’s requirements. As frustrating as that may be for you, calling ahead will help save you from being super annoyed when you walk into the bank.
File a Basic Business Application
What is a Hawaii Basic Business Application?
LLCs are required to file a Basic Business Application (Form BB-1) with the Department of Taxation in order to get a Hawaii tax ID and a General Excise Tax license ($20).
Does a Hawaii LLC need a business license?
While Hawaii doesn’t have a general business license, some cities and counties require local business licenses or permits. For instance, Maui County charges $500 a year for a license to operate a bicycle tour business.
File Hawaii LLC Reports
What is a Hawaii LLC Annual Report?
Hawaii’s Business Registration Division charges you $15 a year for you to remind them of your LLC’s ownership and contact information in an Annual Report. You have to file a report each year even if nothing has changed. Filing your report can be hard to remember, especially since it’s due at an odd time each year—at the end of the quarter in which you initially registered your business. When you hire Northwest, we’ll help you out by sending you reminders to file. Or, you can set your mind completely at ease and hire us to file your reports for you.
How much does an LLC in Hawaii cost each year?
Hawaii LLCs pay a $15 fee to file the required Annual Report.
Pay the LLC Taxes
What are the Hawaii LLC taxes?
The Hawaii personal net income tax rates are:
1.4%: $0 to $2,399
3.2%: $2,400 to $4,799
5.5%: $4,800 to $9,599
6.4%: $9,600 to $14,399
6.8%: $14,400 to $19,199
7.2%: $19,200 to $23,999
7.6%: $24,000 to $35,999
7.9%: $36,000 to $47,999
8.25%: $48,000 +
Technically, Hawaii doesn’t have a sales tax—but don’t jump for joy yet. Hawaii instead has a General Excise Tax, which is a tax on “business activities.” Basically, a portion of every business transaction that’s made goes to the state. Although it’s not a sales tax, most businesses pass the tax onto the consumer, so it ends up appearing similar to a sales tax. Most business activities are taxed at 4%. Local governments can tack on up to 0.5% to the GET, bringing the maximum total up to 4.5%.