Hawaii LLC Formation

We offer fast formation service at a low price. Our package includes everything you need—including registered agent services for half the price of many competitors.

• 1-Year Registered Agent Service (Renewal at the Same Low Price!)
• Instant Access to Our Secure Online Portal
• Annual LLC Renewal Reminders
• Expert Customer Service Support
• Local Filers with Real Knowledge of Hawaii Business
• Company Privacy and Security (List Our Address–Not Yours)
• FREE Operating Agreement and Membership Certificates
• FREE Electronic Delivery of Your Documents
• FREE Pre-Filled Forms in Your Account

How Our Hawaii LLC Formation Service Works

1. Sign up and answer a few brief questions about your business.
2. Get instant access to your secure digital client portal. Store and manage all your service of process, legal correspondence and business mail we receive on your behalf.
3. Within 24 hours, we file your Hawaii LLC Articles of Organization.
4. Receive notification when the Business Registration Division forms your Hawaii LLC.
5. Get a year of Registered Agent Service. Renewals are always the same low price—no “introductory” prices.

What Our Service Costs

Our formation service is $100. We also provide one year of registered agent service for $49.

The state filing fee is $50 for standard processing and $75 for expedited processing. An additional $3.50 is added to cover other fees, such as the mandatory Hawaii State Archive fee and online payment fee.

Tax IDs and Licenses for Hawaii LLCs

Once your Hawaii LLC Articles of Organization are processed and approved, it’s time to get federal and state tax ID numbers and any necessary licenses.

Federal Tax ID

A federal tax ID (also known as the Employer Identification Number, or EIN) is a tax identification number from the IRS. There are many reasons to get an EIN for your LLC. For example, you’ll need an EIN if you have employees, want to open a business bank account, or have to file Employment, Excise, or Alcohol/Tobacco/Firearms returns. You can apply for your federal tax ID number for free from the IRS.

Hawaii Tax ID Number and Licenses

To get a Hawaii Tax ID and your General Excise Tax License, fill out a State of Hawaii Basic Business Application (BB-1 Packet). This packet is available from Hawaii’s Department of Taxation (DOTAX) website or the HBE website. The application fee is $20.

Online applications take 2-5 days and are payable by Visa or MasterCard. Printed forms are accepted by mail, drop off, or in person at a DOTAX office or Business Action Center. Mailed or dropped off applications are payable by check or money order and take 3-4 weeks. In-person applications require two copies of the application but receive tax IDs immediately.

The BB-1 packet also describes some additional tax licenses you may need. These don’t include any professional licenses or licenses from the Department of Agriculture.

Hawaii’s General Excise Tax License

LLCs are considered “pass-through” entities. This means that the LLC itself doesn’t pay income taxes; profits are taxed on members’ individual tax returns.

However, LLCs must still pay Hawaii’s General Excise Tax (GET) because the tax is not on the income of the business but on the gross income of business activities, including wholesaling, retailing, servicing, contracting and more.

Exemptions from Hawaii’s GET

A few organizations, like nonprofits and utility companies, are exempt from GET. It is also possible to receive an exemption from GET for up to seven years if your LLC meets eligibility requirements and enrolls in the Enterprise Zones Partnership Program. Applications are available through Hawaii’s Department of Business, Economic Development & Tourism.

Hawaii LLC Annual Report

An annual report is the state’s way of tracking ownership and contact information. The report is submitted annually to ensure that all records are current. The due date of your annual report depends on when your company was first registered.

• Registered Jan 1-Mar 31: due Mar 31
• Registered Apr 1-June 30: due June 30
• Registered Jul 1-Sept 30: due Sept 30
• Registered Oct 1-Dec 31: due Dec 31

You don’t have to file an annual report the year you register. Your Hawaii Annual Report can be completed online. The filing fee is $15, payable by Visa, MasterCard or eCheck.

Operating Agreement—Do I Need One?

While not required by law, having an operating agreement is a smart move. The operating agreement is where you can specify rules or requirements for your company. Without a written operating agreement, your LLC is subject to the state’s default rules, which may or may not be in your favor.

For example, Hawaii Statute §428-404 states that each member of a member-managed LLC has equal rights, and that any matter relating to the business of the company may be decided by a majority of the members. This default rule sounds fair at first—but what if the investment of two members far outweighs that of five others?

A strong operating agreement can head off these kinds of member disputes. We include a custom operating agreement for your Hawaii LLC in our formation services package.

Benefits of a Hawaii LLC

A limited liability company enjoys advantages over a corporate structure, including fewer taxes and formalities.

• Avoid Double Taxation
  Hawaii’s tropical island charm comes at a price—literally. The costs of daily living in paradise are high, and the State of Hawaii uses a variety of taxes to offset many such costs. There’s one big tax, however, that LLCs can avoid. Because an LLC is considered a “pass-through” entity, the LLC itself doesn’t pay a corporate net income tax. Instead, profits are reported and taxed on members’ individual tax returns (avoiding “double taxation”). Forming a Hawaii LLC means one fewer tax to pay.
• Fewer Formalities
  Managing a Hawaii LLC is an easier process than managing a corporation, making a Hawaii LLC ideal for small businesses. Hawaii LLCs don’t have to have annual shareholder meetings, corporate officers, or a board of directors, so business decisions can be made quickly and easily. With your Hawaii LLC, you gain all the asset protection of a corporation without the formalities.

Enjoy the Hawaiian Breeze

Our formation services make forming a Hawaii LLC a breeze! Enjoy the Aloha State and leave the paperwork to us!