Dreaming of doing business in Hawaii? Forming an LLC can be your first step. Here’s how to create a Hawaii LLC:
1. Name Your Hawaii LLC
Your LLC’s name must be unique and include “Limited Liability Company,” “LLC,” or “L.L.C.” Use the Hawaii Business Express website to search existing business names and ensure your desired name is available. The name can be reserved for 120 days with a $10 fee if you need extra time, but if you’re ready to file, reservation is optional.
2. Choose a Registered Agent in Hawaii
Hawaii requires an LLC to have a registered agent (also called an agent for service of process) in the state. This can be a Hawaii resident or a Hawaii-authorized business entity with a physical address in Hawaii (no PO boxes). The registered agent will receive legal notices and government correspondence for the LLC. You can serve in this role yourself if you have an address in Hawaii and are often available, or you can hire a registered agent company operating in Hawaii.
3. File the Articles of Organization
File Articles of Organization (Form LLC-1) with the Hawaii Department of Commerce and Consumer Affairs (DCCA), Business Registration Division. The filing fee is $50 (plus $1 state archive fee). You can file online via Hawaii’s Business Express portal or by mail. The Articles will ask for:
- LLC name,
- Mailing address and street address of the principal office,
- Registered agent name and address,
- The names and addresses of the initial managers (if manager-managed) or members (if member-managed) – Hawaii requires listing at least one person in a management position,
- Duration of the LLC if not perpetual (most choose perpetual),
- Organizer’s name and signature (the person filing). Online filings are processed immediately in many cases, while mail filings may take a week or two. Once approved, you’ll get a file-stamped copy of the Articles.
4. Obtain an EIN
Get an EIN from the IRS for your LLC. Even in paradise, the IRS has reach! Use the online EIN application for a quick result. This EIN will identify your business for federal tax purposes and be needed for things like bank accounts, hiring employees, or state tax registration.
5. Complete an Operating Agreement
Hawaii doesn’t require submitting an operating agreement, but it’s prudent to draft one. It documents how your LLC will operate and how members relate to each other. Include the ownership breakdown, voting rights, profit allocation, and procedures for changes (like adding members or dissolving). It’s an internal document—keep it with your records. In case of any member disputes or if you need to show a bank or investor your governance structure, this will be essential.
6. Get Your Hawaii General Excise Tax License
Most businesses in Hawaii must register for General Excise Tax (GET), which is Hawaii’s version of a sales tax (though it’s technically on the business rather than a sales tax on customers, but practically it works similarly). You register by filing Form BB-1 (Basic Business Application) with the Hawaii Department of Taxation, or do it online via Hawaii Tax Online. The fee is $20. This will give you your GET license (and also covers other taxes like use tax or employer withholding if applicable). Additionally, check if your specific business activity requires any state professional licenses or permits (for example, if you’re running a food establishment, you need Department of Health permits; contractors need a license, etc.). Also, some counties may have additional requirements (like a Honolulu business license for certain trades).
7. Open a Business Bank Account
Open a bank account for your Hawaii LLC, keeping finances separate from personal. Bring your EIN and a copy of your approved Articles of Organization. Many major banks operate in Hawaii, as do local banks and credit unions. Consider convenience of branch locations (if needed on different islands) and fees. A dedicated account will make handling the GET and other expenses easier too.
8. File Annual Reports
Hawaii LLCs must file an Annual Report (also called an Annual Statement) with the DCCA each year. The due date is by the end of the calendar quarter in which your LLC was formed. For example, if your LLC was formed in June, your annual report is due by September 30 each subsequent year. The filing fee is $15 if filed online (or $16.50 by paper). The report confirms things like your LLC’s address and members/managers. Mark this on your calendar to avoid late penalties or eventual dissolution.
Tip: To simplify your LLC formation, Registered Agents Inc. can file your Hawaii Articles of Organization and even help with your GET license and annual reports. Start your Hawaii LLC with Registered Agents Inc. and let their expertise guide you through Hawaii’s requirements, so you can spend more time focusing on your new business (and maybe enjoying the beach).
Final Thoughts
From naming to licenses, those are the steps to get your LLC established in Hawaii. Complying with Hawaii’s GET and annual filings will keep your LLC in good standing. Once set up, you can enjoy the advantages of your LLC (like liability protection) while doing business in one of the most beautiful places on earth. Aloha and good luck with your Hawaii LLC!
Ready to start your Hawaii LLC? Don’t wait – form your Hawaii LLC now and launch your business with confidence!
