Forming an Hawaii LLC
(2025 Guide)
2025 LLC Guide
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forms your LLC with Northwest for $39 (60% off). Details inside.
How to Start an LLC in Hawaii (Step-by-Step Guide)
Discover how to start an LLC in Hawaii, our step-by-step guide. Learn the essential requirements and process to form your business today.
To establish an LLC in Hawaii, submit Articles of Organization to the Hawaii Business Registration Division. The fee is $51 and the process takes around 10 days for approval.
There are six steps to complete:
Choose an LLC Name
Select a Registered Agent
File Articles of Organization
Create an Operating Agreement
Obtain an EIN
Register for a State Tax Identification Number
If you prefer to form your LLC independently, follow our free guide below. If you prefer professional assistance, we suggest hiring Northwest Registered Agent.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
How much does it cost to establish an LLC in Hawaii?
The initial fee is $51, followed by an annual fee of $15.
What do these charges cover? The $51 fee is for filing the Articles of Organization, the document that officially forms your LLC. The $15 annual fee is for the Annual Report, a required submission to maintain your LLC’s compliance. For detailed information, refer to LLC Costs in Hawaii.
How long does it take to form an LLC in Hawaii?
Filing by mail results in approval within 7-10 business days, excluding mailing time. However, if filed online, approval also takes 7-10 business days.
For any potential delays, please consult the section on How long does it take to get an LLC in Hawaii.
Here are the steps to forming an LLC in Hawaii
1. Check the Availability of Your LLC Name
Start by checking the availability of your desired LLC name in the state. This is important because no two businesses in Hawaii can have the same name.
Begin by searching your preferred business name and comparing it with existing businesses in the state. Use the Hawaii.gov: Search for Business Entity & Documents page to ensure your chosen LLC name is not already in use.
Next, familiarize yourself with the state’s LLC naming guidelines to ensure your LLC name meets all necessary requirements for approval. We will delve deeper into these guidelines here: Hawaii LLC Name.
Note:
Most people choose “LLC”.
2. Select a Hawaii Registered Agent
The following step involves selecting a Registered Agent. A Hawaii Registered Agent is an individual or company responsible for receiving legal mail and state notices on behalf of your Hawaii Limited Liability Company.
Who is eligible to be an LLC Registered Agent? You have three options for appointing a Registered Agent:
You
A friend or family member
A Registered Agent Service
Hawaii mandates that LLC Registered Agents must maintain a physical street address within the state. PO Boxes are not permissible. The name and address of the Registered Agent will be included in public records.
If you lack an address in Hawaii or desire increased privacy, you can opt for a Registered Agent Service for your LLC.
We suggest Northwest Registered Agent
One of the aspects we appreciate most about Northwest is their willingness to allow you to use their office address for your LLC filing. This ensures your personal address is not listed in public records.
Additionally, they provide a service to scan any mail addressed to your LLC and upload it to your online account. Northwest offers exceptional customer service, and we trust them as our own Registered Agent.
Special offer:
Form your LLC with Northwest for $39 + state fee and get a free year of Registered Agent service.
(Read our Northwest Registered Agent review.)
3. Submit Articles of Organization
To establish an LLC, you must submit Articles of Organization to the Hawaii Business Registration Division under the Department of Commerce & Consumer Affairs.
Filing the Hawaii Articles of Organization online costs $51, which is a one-time fee for setting up your LLC.
If you prefer to handle this yourself, check out our detailed guide: Hawaii Articles of Organization. Alternatively, you can hire a company to manage the filing for you.
Need to save time?
Form your LLC with Northwest ($39 + state fee) or LegalZoom ($149 + state fee).
(See why Northwest is #1: Northwest vs LegalZoom.)
4. Draft an LLC Operating Agreement
An LLC Operating Agreement acts as a complementary document to the Certificate of Formation. While the Certificate of Formation establishes your LLC, the Operating Agreement identifies the owners of the LLC.
Moreover, many banks require an Operating Agreement when setting up an LLC bank account. It is also invaluable if legal issues arise, as it demonstrates the proper management of your LLC. For these reasons, we advise all LLCs, including Single-Member LLCs, to have an Operating Agreement.
Additionally, an Operating Agreement is considered an “internal document.” This means you don’t need to file it with the state or the IRS (Internal Revenue Service). Simply keep a copy with your business records. You can download a free template below. Then, watch our Hawaii Operating Agreement video for a step-by-step guide on how to complete it.
Download a free LLC Operating Agreement:
Member-managed: Google Doc | Word | PDF
Manager-managed: Google Doc | Word
(What’s better? See Member-managed vs Manager-managed LLC)
5. Obtain an EIN for Your LLC
The following step is to secure a Hawaii EIN from the IRS for your LLC. Note: An EIN, also known as a Federal Tax ID Number or Federal Employer Identification Number, is essential.
An EIN is needed to:
– Identify your LLC for tax purposes
– Open a business bank account
– Apply for business licenses and permits
How much does an EIN cost? The IRS provides an EIN at no charge.
How long does it take to receive an EIN? Online applications are processed in 15 minutes, while mail or fax applications may take 1-3 months.
How can I obtain an EIN?
– US Citizens/Residents: With an SSN or ITIN, apply online. Follow these instructions: Apply for an EIN online.
– Non-US Residents: You can’t apply online, but you can obtain an EIN via fax or mail. See these instructions: How to get an EIN without an SSN or ITIN.
6. Obtain a Hawaii Tax Identification Number
All LLCs operating in Hawaii are required to register with the Hawaii Department of Taxation and obtain a State Tax Identification Number. This number is essential for conducting business within Hawaii and is distinct from your LLC’s federal EIN number.
How much does a Hawaii State Tax Identification Number cost? The minimum fee for a State Tax ID Number in Hawaii is $20. The cost may increase based on your LLC’s location, industry, and specific business activities.
How can I obtain a Hawaii State Tax Identification Number? You have the option to apply for a Hawaii Tax ID Number online through Hawaii Business Express or by submitting the form via mail. For further details on the Tax ID Number requirements, refer to the Department of Taxation’s Tax Facts: Licensing and Tax Information for New Businesses.
Important: Your State Tax ID Number is also necessary for the annual payment of General Excise Tax. The excise tax amount your LLC must pay is determined by its business activities and industry. You can register for the General Excise Tax concurrently with acquiring your State Tax ID number through the Hawaii Department of Taxation or Hawaii Business Express.
What should I do after my LLC is approved?
Once your LLC is approved, there are a few more actions to consider.
Open a business bank account for your LLC
This will simplify accounting and record-keeping for your business finances. A separate business bank account also helps preserve your personal liability protection by keeping your business finances distinct from your personal ones.
Obtain business licenses and permits
The good news is that Hawaii doesn’t require a state general business license. However, depending on your LLC’s location, a local business license or permit might be necessary. For instance, starting a daycare might require a license from the city or county. More details can be found on our Hawaii Business License page.
File your Annual Report
Every Hawaii LLC must file an Annual Report each year to remain in good standing with the state. The filing fee for this report is $15 annually. The due date is based on a quarterly system. Your first report is due the year following your LLC’s approval. For instance, if your LLC was approved on February 15, 2025, your first Annual Report is due by March 31, 2026. Filing can be done online or by mail, with online being the more convenient option. Follow our detailed guide here: Hawaii LLC Annual Report.
Handle tax obligations
LLCs don’t pay federal taxes directly; instead, the members pay taxes through their personal tax returns. By default, the IRS taxes an LLC based on the number of owners: a Single-Member LLC is taxed as a Sole Proprietorship, while a Multi-Member LLC is taxed as a Partnership. Alternatively, you can request the IRS to tax your LLC as a C-Corporation or S-Corporation. Apart from federal taxes, state and local income taxes and general excise tax also apply. For more information, visit Hawaii LLC Taxes.
Helpful Resources
How to Start an LLC in Georgia FAQs
Can I start an LLC online in Hawaii?
Can I start an LLC online in Hawaii? Yes, you can submit your LLC application online. The fee for filing the Articles of Organization is $51. When filed online, your LLC will be approved within 7-10 business days.
What are the benefits of an LLC?
One major advantage of an LLC is the protection of your personal assets. This means if your business faces a lawsuit, your personal belongings—such as your home, vehicles, and bank accounts—remain safe. This protection extends to all LLC members, whether you have a Single-Member or Multi-Member LLC. All owners are shielded from business debts and liabilities. This level of protection is not available if you operate as a Sole Proprietorship or Partnership, where owners are not safeguarded in case of a legal dispute. As a result, Limited Liability Companies (LLCs) are a more popular choice for business structure.
Another benefit is LLC pass-through taxation. This implies that the LLC itself doesn’t pay federal income taxes. Instead, the profits are passed on to the LLC Members, who then report these earnings on their personal tax returns. Hawaii’s state income tax system aligns closely with federal tax treatment for LLCs. For further details, please refer to How are LLCs taxed.
Is Hawaii a good state to start an LLC?
Whether Hawaii is suitable for starting an LLC depends on your residence and business location. If you reside or do business in Hawaii, you should establish your LLC there. While some websites highlight tax benefits in various states, these do not apply if they are not your home or business state. For instance, forming an LLC in Delaware while living and operating in Hawaii means you’ll have to register your Delaware LLC in Hawaii and incur additional fees, ultimately paying Hawaii taxes regardless. This results in unnecessary expenses and complications without any benefits.
In conclusion, if you live and run your business in Hawaii, it’s a good state to start an LLC. If not, it’s not advisable. Real estate exception: If buying property outside Hawaii, create your LLC in the property’s state. For more insights, see Best State to Form an LLC.
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