Start a Hawaii LLC

You’ll start an LLC in Hawaii first by choosing a name for your business. How will your brand identify itself? So much goes into your name, and it’s time to choose your company’s title. A brand name sets you apart. It tells potential customers who you are and what you do. Think comprehensively when choosing the name for your LLC in Hawaii.

Hawaii LLC Naming Guidelines

Take your time in choosing an LLC name that represents your mission. You might have a few in mind already, or you may need to do some brainstorming. Meanwhile, ensure your name falls within Hawaii’s LLC guidelines. You’ll also have to include “LLC,” “L.L.C.,” or “Limited Liability Company” in the full business name.

Conduct a business name search

You’ll want to confirm that your desired LLC name isn’t already in use. You can conduct a business name search following the directions on our Hawaii business name search page. You won’t be able to file a duplicate company name, so it’s important to find a unique moniker. Check with the Hawaii government to ensure your LLC follows all guidelines, and you aren’t infringing on an existing business. For instance, Hawaii prohibits new businesses from falsifying themselves as a government entity.

Reserving a Business Name through Hawaii Business Express

If you aren’t ready to officially register your LLC, you can reserve your business name via the Hawaii Business Express website for up to 120 days. The reservation can be done for a small filing fee. If you’d rather not deal with this process yourself, we have a business name reservation service that can handle it for you. As part of the service, we also check to see if your desired name is available.

Securing a Domain Name for your Limited Liability Company

When you’re coming up with an LLC name, it’s wise to consider whether you can secure a matching domain name so that your future website can be easily found online. We have a tool to help you do a preliminary domain name search, and our domain name registration service can help you secure the online name that will best serve your company.

Filing a DBA in Hawaii

In most states, businesses using a DBA (“doing business as”) name will need to register their business name and DBA name; however, Hawaii does not require this step. LLC owners can choose to file their Hawaii DBA name, but it is strictly voluntary. If you decide to move forward with a DBA, we can help simplify the process through our Hawaii DBA service.

To make sure you’re entirely in the clear with your business name, visit the United States Patent and Trademark Office website to see whether your business name or logo is federally trademarked. Trademarks can also happen at the state level. To find out if your desired LLC name is already trademarked or apply for a trademark of your own, go to the Business Registration Division of the Hawaii Department of Commerce and Consumer Affairs website page for trademarks.

Next, it’s time to designate a registered agent for your LLC in Hawaii. This is a requirement for Hawaii Limited Liability Companies.

What is a registered agent?

A registered agent receives legal paperwork (such as subpoenas) on behalf of your limited liability company. That can also include paperwork such as taxes, business licenses, or state compliance documents. A registered agent can be the business owner, an involved party, or an outside business entity. However, they must be a Hawaii resident and authorized to do business in the state of Hawaii.

Hiring an Outside Registered Agent Service

And while you can certainly be the registered agent for your business, it’s not always a smart choice, as you’ll be required to always be available during normal business hours. Instead, you may benefit from hiring an outside registered agent service. Work when you want, too, as your Hawaii registered agent service will be available during normal business hours.

Additional perks include:

• Discreet receipt of any legal paperwork
• Helps keep your business in compliance
• Freedom to be out of the office during regular business hours for client meetings, vacations, etc.
• The ability to move your office location without having to update Hawaii registered agent paperwork

You’ll need to file paperwork known as the Hawaii LLC Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs. This essentially legitimizes your business in the eyes of the Hawaii government.

Filing official government documents like this can be intimidating and/or complicated for many people, which is why we’re here. With our business formation plans, our professionals will file for you to make sure it’s done quickly and correctly. But, although we can handle this for you, we’ll show you how the process works below.

File with theHawaii Department of Commerce and Consumer Affairs

You can file your Articles of Organization on the Business Registration Division of the Hawaii Department of Commerce and Consumer Affairs website or via mail to:

Department of Commerce and Consumer Affairs
Business Registration Division
P. O. Box 40
Honolulu, Hawaii 96810

This includes a filing fee, and you can pay an additional fee for expedited review.

Articles of Organization Requirements

Hawaii’s Articles of Organization require the following information:

• The LLC name
• The business address
• The name and address of your registered agent or registered agent service
• Additional members and their addresses
• Whether your LLC will be manager- or member-managed
• Your signature

Most LLCs are “member-managed,” meaning that the members (owners) themselves manage and make decisions for the company. A manager-managed LLC is one in which the owners appoint one or more managers (can be someone outside the LLC or a select member or members of the LLC) to manage the company.

There are also boxes to check regarding liability. Most people check the first box, which states that the owners will not be personally liable for the debts, obligations, and liabilities of the company, which is one of the main reasons for forming an LLC.

Your Hawaii Limited Liability Company Articles of Organization can be processed in about two weeks unless you pay for expedited processing. If you’re in a hurry to form your LLC but don’t want to deal with the expedited process, we can handle it for you with our faster filing speeds service.

Digitally Storing Your Hawaii LLC Paperwork

If you have us filing your Articles of Organization, once the state approves your LLC, paperwork will be available from your ZenBusiness dashboard. The dashboard is where you can keep it and other important paperwork digitally organized.

Once you get a physical copy from the state approving your LLC, store it alongside other important documents. These other important documents can include operating agreement, member certificates, contracts, compliance checklists, transfer ledger, etc. We offer a customized business kit to help you keep these important documents organized and looking professional.

It is not a requirement to have a Hawaii operating agreement for your LLC; however, it’s a best practice to have one.

A Hawaii LLC operating agreement names the members of the business and outlines things like protocols for bringing in new members, dissolving the business, and selling its name. You can include these, among other items, in the operating agreement to keep all LLC members accountable. Operating agreements are essentially a business outline to set expectations and standards for all parties.

While you don’t have to submit an operating agreement with your Articles of Organization, it’s a good idea to keep the agreement with your other business documents. All members should sign the operating agreement, and you should have it notarized for future use.

You’ll want to apply for an EIN — employer identification number — which is an assigned tax ID number (also referred to as a Federal Tax Identification Number) for your business. It’s used when filing taxes and helps identify your LLC in Hawaii with the Internal Revenue Service (IRS). It’s also necessary to open a business bank account and hire employees.

You can get your Hawaii LLC’s Employer Identification Number through the IRS website, mail, or fax. If you’re not fond of dealing with that particular government agency, we can get it for you. Our EIN service is quick and eliminates the hassle.

Open a business bank account for your Hawaii LLC

Once you’ve secured an Employer Identification Number, you’ll be able to open a business bank account. Having separate accounts for business and personal banking is critical for tax time and helps you avoid commingling funds. Commingling funds can not only make your taxes more difficult, but it could also be used against you. This would be if someone takes you to court to challenge whether you and your LLC are truly separate entities.

We offer a discounted bank account for your new business. This allows for unlimited transactions, online banking, a debit card, and more. When you want to authorize others in your business to use the account, we offer a banking resolution template to simplify the process.

For further help managing your new business’s finances, try ZenBusiness Money. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.

The state fees for forming a Hawaiian LLC range from $50 to $125, depending on factors such as whether you choose to reserve your business name. Note that fees change over time, so you should check the Business Registration Division of the Hawaii Department of Commerce and Consumer Affairs website for the most recent filing fee schedule.

Hawaii offers an LLC filing process for broad protection. Free yourself of liability, but without the requirements that are put on corporations. Hawaii LLCs create a flexible way to grow your business without putting your personal assets at risk. 

The benefits of forming a Hawaiian LLC include:

• Keep your personal liability and debts separate from that of your business. 
• Easier filing process than corporations
• More freedom than corporations
• Avoid double taxation. LLC owners only have to pay federal income taxes on their business’s profits when filing a personal tax return.

Learn more about the benefits of the LLC business structure.

Hawaii processes LLC applications in seven to 14 business days. 

Hawaii has options for expediting your filing for an additional fee. If you’re in a hurry to form your LLC and don’t want to jump through the hoops of the state’s expedited filing processes, we can handle it for you with our faster filing speeds service.

No. While it’s recommended for the safety and security of your business, Hawaii does not require its LLCs to have an operating agreement.

One of the biggest benefits of starting an LLC is that you will only pay income tax on your personal tax return, but your business will be exempt. That’s a huge financial perk, and one reason many business owners opt to form an LLC in the first place. 

However, as a business owner, you’ll need to be mindful of other taxes that will need to be paid. Taxes will also vary based on your industry. 

One such tax that’s payable to the Hawaii government is a general excise tax. The GET charges businesses based on their gross income, rather than a state sales tax. The tax rate is 0.15% for insurance commission and 0.5% for wholesaling, manufacturing, producing, wholesale services, and imports for resale. All other businesses are charged 4%. Some counties also charge a fee, including: 

• The city and county of Honolulu: 0.5% through 2030

• Kauai County: 0.5% through 2030

• Hawaii County: 0.5% through 2030

Your business will need to register with the Hawaii Department of Taxation. To do so, you’ll need to fill out and submit Form BB-1 either online or by mail. 

You will also need to pay self-employment tax to the IRS.

If you want to determine your bookkeeping, accounting, and tax needs, check out our small business taxes guide.

When you receive your EIN, you’ll be informed of available tax classification options for your Hawaii LLC. Most LLC owners decide to have their business taxed the default way, which is as a sole proprietorship (for single-member LLCs) or a partnership (for multi-member LLCs). This method only requires LLC members to pay taxes on their percentage of the profits on their personal tax returns. The LLC itself is not taxed. This avoids the “double taxation” that corporate shareholders pay, in which profits are taxed both at the business level and the personal level.

Another option is to choose to be taxed as a corporation. This option sometimes is favorable for large LLCs that bring in high earnings. There are some disadvantages to consider when opting to be taxed as a corporation, so consult a qualified tax professional before making a decision.

No. Hawaii law doesn’t offer Series LLCs. (A Series LLC consists of multiple LLCs under a single LLC setup.) Hawaii business owners with different companies must file separate LLCs that can be placed into a holding company. 

You’ll need to make sure your LLC has all the licenses and permits it’s required to have by law. Unfortunately, because licensing varies by industry and location and can occur on the federal, state, and local levels, there’s no central place to check to see if you have all the business licenses and permits you need. You’ll have to do some research.

If you don’t have the time or inclination to do all this research, or if you just want the peace of mind to know that you have all the business licenses and permits your LLC is legally required to have, our business license report service can do the work for you.

Those who file a Hawaii LLC must submit an annual report no later than the last day of the quarter in which you formed your business. For instance, if you filed in February (Q1), you would need to submit your annual report no later than March 31 of that year (the last day of the quarter). There is a fee that must be paid when filing your annual report.

We can help you with your annual report in a couple of ways. Our Hawaii annual report service will help you file your annual report, and our Worry Free Compliance service not only helps with filing your annual report, but also sends you other important compliance reminders and helps you with two amendment filings each year.

To dissolve your Hawaii LLC, you will need to submit your Articles of Termination to the Hawaii Department of Commerce and Consumer Affairs, Business Registration Division. There is a fee involved to file.

For more information, visit our Hawaii business dissolution guide.