If you’re considering starting a business, you’re likely looking at your first steps toward making that a reality. Filing paperwork and forming a limited liability company (LLC) is one such step to making your business official. 

It might not sound like the most glamorous task, but you can get to the more exciting stuff later. Forming your LLC in Hawaii is important in protecting yourself and your business. It helps to protect your personal assets against potential legal or financial action. 

This is a straightforward process that’s fairly pain-free. Take a look at this step-by-step guide to getting your LLC up and running in The Aloha State.

First, you’ll choose and claim your name. Next, you’ll appoint a registered agent, letting the Hawaii government know who it can contact with legal documents. Finally, it’s time to make your LLC official by filing your Articles of Organization and applying for an EIN, or tax ID number, which can be used for many purposes, such as paying taxes or opening a business checking account.

Step 1: Name Your Hawaii LLC

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 your company’s name.

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. 

You can conduct a business name search using our Hawaii business name search tool to confirm that your desired name hasn’t been claimed. You won’t be able to file a duplicate company name, so it’s important to find a unique moniker. Be sure to 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. 

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.

When you’re coming up with a business 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. 

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 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 business name is already trademarked and/or apply for a trademark of your own, go to the Secretary of State website page for trademarks.

Step 2: Appoint a Registered Agent in Hawaii

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

A registered agent receives legal paperwork on behalf of your LLC. That includes paperwork such as taxes, 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.

If it helps, think of the registered agent as your Hawaii LLC’s point of contact. 

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 any paperwork

Step 3: File Hawaii Articles of Organization

In Hawaii, you will need to file paperwork known as the Articles of Organization. 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 handle the filing for you to make sure it’s done quickly and correctly the first time. But, although we can handle this for you, we’ll show you how the process works below.

Your Articles of Organization can be filed online or via mail to: 

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

Filing will include a fee, and you can pay an additional fee for expedited review. 

Hawaii’s Articles of Organization are extremely simple to fill out. The single-page form includes:

• The business name
• The business address
• The registered agent’s name and address
• 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 Articles of Organization can be processed in about two weeks unless you paid for it to be expedited. 

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

Once you get your physical paperwork back from the state approving your new LLC, you’ll want to keep it in a safe location along with your other important documents, such as your 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.

By now you’re realizing how often you’ll need to supply an address for your new business. That can be unsettling for some business owners, especially those running their business from home. In instances where you’re not required to give the registered agent address or official principal address for your business, a virtual business address can come in handy. 

With our virtual business address service, we supply you with a physical street address where you can have your mail sent without divulging your real address to more people than necessary.

Step 4: Create an Operating Agreement

It is not required to have a Hawaii Operating Agreement for your LLC; however, it’s a good business practice to have one. 

An 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. These and other factors can be included in the Operating Agreement to keep all LLC members accountable and on the same page. Essentially, it’s a business outline of what’s to be expected from all parties involved. 

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 agreement, and you should have it notarized for future use.

Step 5: Apply for an EIN

An EIN — employer identification number — 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 Hawaii LLC with the IRS. It’s also needed to open a business bank account and hire employees. 

You can get your Hawaii LLC’s EIN through the IRS website, by mail, or by fax, but if you’re unfond of dealing with that particular government agency, we can get it for you. Our EIN service is quick and eliminates the hassle.

Once you’ve secured an EIN, you’ll be able to open a business bank account. Having separate accounts for your business and your personal banking is critical for sorting out your finances at 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 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 the ZenBusiness Money App. It can help you create invoices, receive payments, transfer money, and manage clients all in one place.