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How to Set Up a Hawaii LLC on Your Own

Technically speaking, you don’t have to use an LLC formation service like ZenBusiness or LegalZoom. These services are incredibly helpful, but you can save money by completing the process yourself.

You can read our complete guide to DIY an LLC setup in Hawaii, but here’s a quick look at the process:

Choose a business name

Every LLC in Hawaii needs a name that’s memorable and gives potential clients a good idea of what goods or services are available. The name also needs to be unique — both for legal reasons and so your business stands out from the competition.

Appoint a HI registered agent

As we’ve mentioned in this guide, every LLC needs an agent who can accept service of process on your behalf. In most states, you can act as your own registered agent as long as you have a physical address in the state. That said, we generally recommend that you appoint someone else (like an online service) to act as your agent.

File the Articles of Organization

This document, once filled out and filed, officially forms your business in the state of Hawaii. You’ll need to provide some important information, including your contact information, your business address, signatures for your LLC’s members, and more. Hawaii has a $50 filing fee.

Setting up the LLC is as easy as 1-2-3; it’s the maintenance requirements that are a bit more complicated:

Register for and pay taxes

If you have employees, you’ll need to get an Employer Identification Number from the IRS. Then there are state-specific taxes, too. Hawaii has a pretty wide range of income taxes. The corporate rates fall between 4.4% and 6.4%, but the individual rates fall between 1 and 11%. Hawaii does not have a sales tax, though; instead, there’s a general excise tax. Most businesses will pay 4% for this tax. You can learn more about these and other miscellaneous taxes at the Hawaii Department of Taxation.

Get licenses and permits

There’s no general state business license in Hawaii, but that doesn’t mean you won’t need to get professional licenses, such as those offered by the Professional and Vocational Licensing Division.

Create an operating agreement

Even single-member LLCs should create a “master document” that sets out how the business will operate, both now and in the future.

File your annual report

Each year, your LLC will need to file an annual report to update the state about the standing of your business. Hawaii has a $15 filing fee for this report.

Obtain business insurance

Every business with employees needs to maintain workers’ compensation insurance and a commercial vehicle policy for company-owned vehicles. You may also want to get a general business liability policy, too.

Get a business bank account

You should sign up for a business bank account so you can write checks and make purchases in the name of the business instead of pulling from your personal accounts (a legal no-no).

This is just the tip of the iceberg, though. For more detailed guidance, we recommend contacting an attorney or checking out the full Hawaii LLC Formation Guide.

What Is a Hawaii LLC?

LLCs are formal legal entities that are typically taxed similarly to sole proprietorships and general partnerships, in that the owners include any company profits or losses into their personal returns — the LLC itself does not owe income taxes. For more a more in-depth description see: What is an LLC?

The Total Cost of Forming and Maintaining an LLC in Hawaii

In addition to the costs of a business formation service or hiring an attorney (which are optional, as we’ve discussed), there are quite a few other required and optional expenses when forming and maintaining a Hawaii business. You cannot form an LLC in Hawaii without filing the Articles of Organization, the document that officially registers your business within the state. Hawaii charges a simple $50 fee for this filing.

Your LLC will need to file an Annual Report each year. This form is pretty simple, but it keeps the state aware of some basic but vital information about your business, such as your address and registered agent information. This filing costs $15 to submit each year. Read more about Hawaii costs – Hawaii LLC costs.