How to Start an LLC in Hawaii

Step 1: Name Your Hawaii LLC

Choosing a name for your Hawaii LLC is one of the most important branding decisions you’ll make for your business. To avoid a slow-down in the LLC registration process, consider the following naming rules:

• Your Hawaii LLC name cannot be identical to other registered names. Per §16-36-15, this includes trademarks as well as registered business names.
• Your business name cannot be deceptive. The name of your Hawaii LLC cannot mislead consumers about the nature of your business. For example, words like “bank,” “trust company,” and “public accountant” are off limits unless your LLC is actually one of those things.

Once you’ve selected an available name, search for it as a domain name and on social media. If you register a Hawaii LLC name only to find out later that it’s not available across the online platforms you need, you’ll be stuck doing rebranding work.

When you hire Registered Agents Inc to form your Hawaii LLC, we’ll include a year of free domain registration. We’ll also help you set up your business website and professional email addresses—free for three months. And if you want to complete the branding process in one swoop, hire us to register your trademark with the United States Patent and Trademark Office.

Step 2: Choose a Registered Agent

Hawaii LLCs are required to appoint and maintain a registered agent in the state. The registered agent’s duty is to accept service of process and other legal documents on behalf of the business, and to then forward those documents to the business in question.

Registered agents in Hawaii can be either individuals or entities:

• Individual registered agents must be Hawaii residents with a physical address in the state. This is the address at which they need to be available to accept service of process.
• Commercial (entity) registered agents must be authorized to conduct business in Hawaii. They must have a physical business address in the state where they can accept service of process.

You can also serve as your own Hawaii LLC registered agent, as long as you’re a Hawaii resident and generally available during business hours at your registered office address.

Step 3: File Hawaii Articles of Organization

Submitting Articles of Organization with the Department of Commerce and Consumer Affairs Business Registration Division is what officially forms your LLC in Hawaii. The document can be filed online, by mail, in person, or via fax. However, the state encourages online filings as they are processed more efficiently. You’ll need to include the following in your Articles:

1. Business name
   The name of your business, including “LLC,” “L.L.C.” or “Limited Liability Company.
2. Company’s mailing address
   Include the mailing address of your main office. A P.O. Box is acceptable.
3. Registered agent name and address
   Include their full name and physical address. If your registered agent is an entity, you’ll also need to include their state/country of origin.
4. Name and address of organizers
   An organizer is the person filing your Articles of Organization. You’ll need to include both their name and street address. The organizer does not have to be a member of your LLC. For example, if you hire us to form your Hawaii LLC, we’ll put our information here. You only need to list one organizer.
5. Period of duration
   If you want your Hawaii LLC to expire on a certain date, include that here. Otherwise, select “at-will,” which is what most businesses choose.
6. Management structure
   Select if your LLC is member-managed or manager-managed. Member-managed means the LLC’s members (owners) are the ones handling daily business operations. Manager-managed means a non-member party has been hired to take care of the day-to-day.
7. Names and addresses of initial members or managers
   List names and addresses of members if your LLC is member-managed, or managers if it’s manager-managed.
8. Liability
   Select if members will be liable for all, some, or none of the LLC’s debts and obligations. Since liability protection is one of the benefits of forming an LLC, most select none.
9. Signature
   The LLC organizer will need to sign and date the filing.

How much does it cost to make an LLC in Hawaii?

It costs a total of $51 to file LLC formation documents in Hawaii: $50 for Articles of Organization, plus a $1 State Archives fee.

How long does it take to get an LLC in Hawaii?

Hawaii LLCs are generally formed in 3-5 days after you submit your Articles of Organization. If you file paper documents instead of online, plan on some additional processing time.

Step 4: Apply for Hawaii Tax ID Number

After your Hawaii LLC is formed, you need to apply for a Hawaii Tax Identification Number. This number is different from your EIN (tax number applied for at the federal level), and you’ll need to get one regardless of whether you have an EIN or plan to get one later.

To get your Hawaii Tax ID, fill out and submit the Hawaii Basic Business Application, form BB-1, to the Department of Taxation. You can do so online or by mail. The registration fee is $20.

How are LLCs taxed in Hawaii?

Hawaii LLC are taxed as pass-through entities by default. Profits pass to members, who claim them on their individual tax returns.

While the state doesn’t have LLC-specific taxes or a sales tax, it does have a General Excise Tax (GET). This tax looks a lot like a sales tax, but it’s imposed on Hawaii businesses, rather than consumers. When you apply for your Hawaii Tax ID, you’ll also register for the GET License. Tax rates vary by industry and county, but is around 4% for most.

Step 5: Set Up Business Operations

Now that your Hawaii LLC is formed it’s time to set up your business operations. These essentials can be easy to overlook, but are an important piece of ensuring your LLC isn’t just registered, but fully functional.

• Create an operating agreement.
  An operating agreement maps out how your Hawaii LLC will run. It establishes things like member and manager responsibilities, how records will be kept, expense reimbursement, and ownership transfers. In essence, your operating agreement answers all the big questions now so that you aren’t scrambling to answer them later. While not required by Hawaii law, establishing a sound operating agreement is a key element of a fine-tuned LLC.
• Get an EIN.
  An EIN is essentially your Hawaii LLC’s social security number. Not to be confused with your Hawaii Tax ID, your EIN is a federally-issued identifier applied for through the IRS. You’ll likely need one when you set up a business bank account and hire employees.
• Manage your company’s money.
  To help maintain your Hawaii company’s limited liability, you’ll want to get a business bank account. This will keep your business and personal funds separate (a key piece of liability maintenance), and will make it easier to keep your finances organized overall. It’s customary for LLC members to fund the bank account with an amount of money equal to their ownership percentage.
• Obtain licenses and permits.
  The one statewide license all Hawaii LLCs need is the GET License, issued by the Department of Taxation. It is applied for alongside your Hawaii Tax ID. To determine what other licenses and permits you may need, check with your local jurisdiction and your industry’s governing bodies.

Step 6: File BOI Report

The Beneficial Ownership Information (BOI) Report is a federal filing that went into place in 2024. Following formation, most LLCs are required to submit this report to FinCEN, so that the agency can keep track of who owns and runs your business.

Exact filing deadlines depend on when you form your LLC:

• Formed before 2024: File before 2025
• Formed during 2024: 90 days to file post-formation
• Formed in 2025 and beyond: 30 days to file post-formation

When you hire us to create your LLC in Hawaii, add BOI Report filing.