How to Form a LLC In Hawaii
Do I need a lawyer to Form a LLC in Hawaii?
The short answer is no.
The state of Hawaii does not legally require a lawyer to form a
Hawaii Limited Liability Company (LLC).
Our detailed
LLC Information page may help you understand some
of the implications of forming a
Hawaii LLC.
However, if there is
anything about
Forming a LLC in Hawaii
that you're not sure about you should seek the advice of a competent Hawaii lawyer, a Hawaii accountant,
or a Hawaii Business advisor
before you
form a LLC in Hawaii.
Once you have made the decision to
Form a LLC in Hawaii, a Hawaii lawyer
can file your documents and act as a middle man for a few hundred dollars an hour; or you can use an online service provider like All Business Documents
to perform these services and
save money that you can use in your new
Do I have to Reserve a Company Name before I Form a LLC in Hawaii?
You are not legally required to reserve a Company Name for a new Hawaii LLC before you submit your application to
Form a LLC in
Hawaii.
Whether or not you need to reserve a company name for your new Hawaii LLC depends entirely on your business situation.
The Hawaii Department of Commerce and Consumer Affairs uses names on a first come first served basis.
So if you think that someone may snatch the Company Name that you have in mind, you may want to reserve that Hawaii Company Name.
What if the Hawaii LLC Name I want is already taken?
If the Name you have chosen for your new Hawaii LLC is already in use by a currently active
Hawaii Corporation or LLC, and you still want to use that LLC Name, then you will have to register a DBA Name with the Hawaii Department of Commerce and Consumer Affairs. "DBA" is an abbreviation for "
Doing
Business
As."
In Hawaii a DBA Name is called a Trade Name.
We verify that the Name you have chose for your new Hawaii LLC is available
before we submit
your new LLC filing to the Hawaii Department of Commerce and Consumer Affairs.
If necessary we can register a Trade Name in Hawaii for you so that you can open your new Hawaii business as quickly as possible.
What do I have to do BEFORE I Form a LLC in Hawaii?
- Choose a name for your Hawaii LLC
Your Hawaii LLC name can identify the type of products and services your business will provide;
or it may be the name of the founder; or it can be a combination of the two or something else.
In any case, the Hawaii LLC name that you choose must be distinguishable from the name of any other registered Hawaii LLC or other
registered Hawaii business entity, such as a Hawaii Corporation or LLP.
The LLC name must also be different from any reserved names on record with the state of Hawaii.
Your Hawaii LLC name must not imply that it was formed for a purpose other than that stated in your
Articles of Organization;
and your Hawaii LLC name must not be a name that is likely to mislead the public.
The name of a Hawaii LLC must include the word "LLC" or
"Limited Liability Company" or an abbreviation of one of these words.
It's important to choose a good name for your Hawaii LLC because if you want to change it after you
Form a LLC in Hawaii you will have to file amended Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs (and pay a fee).
Our Hawaii LLC services include:
- Check to make sure that your Hawaii LLC name is available
- Make sure your Hawaii LLC name conforms to state of Hawaii regulations
- Reserve your Hawaii LLC name with the Hawaii Department of Commerce and Consumer Affairs if necessary
- Select an official address and a Registered Agent for your Hawaii LLC
Every Hawaii LLC must have an address that is physically located in the state of Hawaii.
This address is "registered" with the Hawaii Department of Commerce and Consumer Affairs.
The Registered Address is where official and legal correspondence can be delivered.
The individual or company that is registered with the state of Hawaii to receive all correspondence on behalf of the Hawaii
LLC is called a "Registered Agent" or "Agent for Service of Process".
You may act as your own Registered Agent, however, many Hawaii LLCs hire a Registered Agent because they don't have a physical
address within the state of Hawaii or to provide a distinct level of privacy.
We offer Registered Agent Services for your Hawaii LLC as part of our Hawaii LLC Formation Services
- Determine who will be Members and who will Manage your Hawaii LLC
The owners of a Hawaii LLC are called Members - not Partners or Shareholders.
(a Hawaii Limited Liability Company does not issue stock).
Members make all business decisions and realize the financial benefits generated by the Hawaii LLC.
Division of ownership and distribution of profits are decided by private agreement among the Members.
Each Hawaii LLC must have at least one Member.
Members need not live in the state of Hawaii or be citizens of the United States.
Managers are responsible for the day to day operation of the Hawaii LLC.
Members elect or appoint Managers and have the power to remove them.
Managers may or may not be Members of the Hawaii LLC.
Management for your Hawaii LLC may be defined in your Articles of Organization or, more commonly, in an Operating Agreement.
- Determine how you want your Hawaii LLC to be taxed
The IRS does not recognize a Limited Liability Company as a classification for federal tax purposes.
Hawaii LLC Members can elect for the IRS to tax the LLC as a sole proprietorship, partnership, C Corporation, or S Corporation.
This decision may be made after the Hawaii LLC is created.
If a single Member Hawaii LLC does not declare a tax classification it is taxed the same as a sole
proprietorship.
A multiple Member Hawaii LLC that does not declare a tax classification is taxed as a general partnership.
More specific federal LLC tax information can be found at the
IRS web site.
We can prepare the S Corporation election form for your Hawaii LLC and include it with
your LLC documents.
- File Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs
A Hawaii Limited Liability Company is a type of business that is authorized by the state of Hawaii - not by the federal government.
In order to form a LLC in Hawaii you must file Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs.
The Articles of Organization must include certain specific information about your Hawaii LLC.
If the Articles do not conform exactly to state of Hawaii requirements they will be rejected.
You may subsequently amend the Articles of Organization for your Hawaii LLC but you will have to pay a fee to the state of
Hawaii in order to make the changes official.
We can prepare and file your Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs.
- Get a Federal Employer Identification Number (FEIN) for your Hawaii LLC
A Federal Employer Identification Number, also known as a Federal Tax Identification Number, is used by the IRS to identify a
business entity.
An FEIN is like a Social Security Number for your Hawaii LLC.
All Hawaii LLCs electing to be taxed as a C-Corporation or S-Corporation are required to have a FEIN.
If you do not elect to have your Hawaii LLC taxed as a Corporation you may still need to get a FEIN if it is composed of multiple members or
if you plan to have employees.
If you plan to form a Single Member Hawaii LLC you may not need a separate FEIN for the LLC if you have no employees.
The sole Member of a Single Member Hawaii LLC may be able to use his or her Social Security Number instead of applying for an FEIN.
You may request a FEIN for your Hawaii LLC for banking or state tax purposes, but an FEIN may not be required for federal tax purposes depending
on your business circumstances.
We can get a FEIN for your new Hawaii LLC as soon as it is approved by the Hawaii Department of Commerce and Consumer Affairs.
What do I have to do AFTER I Form my Hawaii LLC?
- Conduct an Organizational Meeting and adopt an Operating Agreement
An Operating Agreement defines the rules by which your Hawaii LLC will operate.
It is the core document that is referred to when issues concerning your LLC need to be resolved.
Operating Agreements may include requirements for almost anything that involves the management and operation of your Hawaii LLC.
By having an Operating Agreement all Members will be provided with a clear set of rules they have agreed upon thus reducing the likelihood of
disagreement in the future.
Items commonly included in an Operating Agreement for a Hawaii LLC:
- Rights and duties of Members
- Member contributions
- Record keeping and reporting requirements
- Distribution of profits
- Allocation of losses
- Management duties
- Meeting requirements
- Voting requirements
- Admission and termination of Members
- Dissolution procedures
Although an Operating Agreement is not required in the state of Hawaii, if you plan to form a multiple Member Hawaii LLC
it is highly advisable to have one.
Having an Operating Agreement will save you a lot of time and money should conflict arise down the line.
As your Hawaii LLC grows over time, you may amend your Operating Agreement as necessary.
When your Hawaii LLC has an Operating Agreement your business will be governed by your own rules and not some canned business rules created by
the state of Hawaii.
We can create an Operating Agreement for your new Hawaii LLC which is customized for your specific business and complies with
all Hawaii Department of Commerce and Consumer Affairs requirements.
- Open a Business Bank Account in Hawaii
It's very important that you have a separate business bank account for your Hawaii LLC.
Mixing personal and business funds may get you in a lot of trouble with the tax man down the line.
It's a good idea to contact the bank before you open a business bank account for your Hawaii Limited Liability Company.
Specific requirements vary from bank to bank.
In most cases you will need a FEIN, a copy of your Hawaii LLC Articles of Organization, and a resolution identifying authorized signers
if those names are not listed in the Articles.
- Obtain Business Licenses from the cities and counties in which you plan to do business
Note that forming a Hawaii LLC doesn't take the place of obtaining a business license, tax
registration certificate, or other required business permits.
A Hawaii LLC merely creates an ownership structure that limits the owner's personal liability.
You may still need to take care of getting set up to do business with your local government.
Depending on the nature of the business and the location of your Hawaii LLC you may need to get one or more city
business licenses or permits.
The business licenses or permits that are required for your Hawaii LLC vary depending on your business activities
and the specific locations within the state of Hawaii in which you want to conduct business.
If your Hawaii LLC will be selling products in Hawaii you may be required to obtain a Reseller's Permit from the appropriate
Hawaii state agency.
If your Hawaii LLC will be selling products in Hawaii you will also be responsible for all applicable local and state of Hawaii
sales taxes if there are any.
We can research and identify the business licenses and permits which your Hawaii LLC will require.
- File the required Hawaii LLC reports
The Hawaii Secretary of State does not have any Initial LLC Annual Report requirements for new Hawaii LLCs.
Every Hawaii LLC must file an Annual Report EACH year with the Hawaii Secretary of State.
The Hawaii LLC Annual Report is due at the Hawaii Secretary of State EACH year by the end of the quarter (March, June, September, December) in which the Hawaii LLC was initially approved by the Hawaii Secretary of State.
If a Hawaii LLC does not file its LLC Annual Report with the HI Secretary of State by the due date then that Hawaii LLC will be subject to late fees which increase each month that the Hawaii LLC is late in filing its Annual Report with the Hawaii Secretary of State.
We can fill out and file the initial and any Annual Report with the Hawaii Department of Commerce and Consumer Affairs after your Hawaii LLC gets going.
- Keep proper records of your Hawaii LLC on file
Keep the following records on file and available at the principal business office of your Hawaii LLC:
- Names and addresses of all Members and Managers of the Hawaii LLC
- Articles of Organization for the Hawaii LLC and any Amendments to them
- Copies of all tax returns and reports for the Hawaii LLC for the last 3 years
- If the Hawaii LLC has an Operating Agreement, a copy of the Operating Agreement and any Amendments
- Copies of any LLC Resolutions which have been adopted by the Hawaii LLC
What information do I need in order to Form a LLC in Hawaii?
In order to Form a LLC in Hawaii you'll need the following information about your new Company:
- The name of your new Hawaii LLC along with your second choice of a name in case the name that you want is not available
- Physical address of the LLC office in Hawaii (not a PO Box)
- Name and address of your Hawaii Registered Agent (not a PO Box)
- Who is going to manage the day to day operation of your Hawaii LLC
- Names and addresses of each Manager of your Hawaii LLC
- Names and addresses of each Memeber of your Hawaii LLC
- When your Hawaii LLC will start and when it will cease to exist (normally the LLC starts on the date the application is filed and will exist perpetually)
Note that
ALL the information that you provide when you Form a LLC in Hawaii becomes part of the public record.
The less information that you make public the better.
Our data entry forms include the
absolute minimum amount of information that is required in order to Form a Limited Liability Company in Hawaii.
How long does it take to Form a LLC in Hawaii?
Processing times for new Hawaii LLC applications vary depending on the work load of the
Department of Commerce and Consumer Affairs's staff.
We've found that normal processing of new Hawaii takes the state around 7 business days.
Add 2-3 days for the time period for shipping the final documents by mail.
Choosing our Express Mail option can shave a couple of days off the total processing time for your Hawaii LLC.
PLEASE NOTE: WE CANNOT GUARANTEE HAWAII DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS PROCESSING TIMES.
We are dependent on, and have no control over, the staff and systems of the Hawaii Department of Commerce and Consumer Affairs.
In our experience 7 business days is the time it
usually takes the Hawaii Department of Commerce and Consumer Affairs to process
a new Hawaii LLC application.
We get your Hawaii LLC application to the HI Department of Commerce and Consumer Affairs ASAP. Once it is at the state we have no control over the new Hawaii LLC application process.
Are there any Expedited Processing Options for new HI LLC Filings?
For an additional $50 the Hawaii Department of Commerce and Consumer Affairs will process your application to form a new Hawaii LLC within 1 business day.
How much does it cost to Form a LLC in Hawaii?
The state of Hawaii charges $60.00 to form a new LLC.
This is the cost of filing and getting a Certified Copy of your Articles of Organization from the HI Department of Commerce and Consumer Affairs.
If you choose All Business Documents to help you form your LLC in Hawaii, our processing fees are $125.00.
We start processing your new Hawaii LLC order as soon as we get it.
Total cost includes:
- HI Name Check and Verification
- Prepare Articles of Organization
- File Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs
- Certified Copies of Articles
- Hawaii LLC Checklist
- Priority Mail Delivery
- Unlimited Customer Support
What is Hawaii Foreign LLC Qualification?
You want to do business in the state of Hawaii but are registered as a Domestic LLC in another state.
In order to legally conduct business in the state of Hawaii you must register with the Hawaii as
a Hawaii Foreign LLC.
The process of registering as a Foreign LLC in the state of Hawaii is called Hawaii LLC Foreign Qualification.
The process of Hawaii LLC Foreign Qualification is similar to the process of forming a Domestic LLC in the state of Hawaii.
Your original formation documents (usually called Articles of Organization) and LLC Operating Agreement apply to your Hawaii Foreign LLC.
The Members and Managers of your Domestic LLC have the same roles in the Hawaii Foreign LLC.
If you are ready to Form a Hawaii LLC, choose which Hawaii
LLC options that you want below then click the Next Step button.
If you have any questions regarding our Hawaii LLC Formation services you can call us at
855-771-2477 or email us at
CorpServices@AllBizDocs.com.
Hawaii LLC Cost Estimator
Our HI LLC Services include:
(These services are included in our processing fees)
Optional Hawaii LLC Services
(Choose options, cost is updated automatically)
-
Expedited Service - $50
explain
Normal processing time for a new Hawaii LLC is 7 business days.
For an additional $50 the Hawaii Department of Commerce and Consumer Affairs will process your application to form a new Hawaii LLC within 1 business day.
This is the time by which the Hawaii Department of Commerce and Consumer Affairs will either approve or deny the LLC application.
Hawaii LLC applications must be received by the Department of Commerce and Consumer Affairs before noon Hawaii time for the process to start that day.
Another way to expedite your order is to choose the Express Mail option.
The Express Mail option can cut the document delivery time in half.
- Express Mail - $35
explain
If you really need your original approved Articles of Organization in your hands quickly, the
Express Mail option can cut the delivery time in half.
The Express Mail option has no effect on the Hawaii Department of Commerce and Consumer Affairs's processing time. For the quickest turn-around time also choose the Expedited Service option.
-
S-Corporation Election - $50
explain
S Corporations are taxed differently than C Corporations.
With an S Corporation, business profits may be "passed through" directly to the shareholders.
This avoids the double tax on both corporate and shareholder profits.
S Corporations do not pay any Hawaii Corporate Income Tax.
We can prepare the S Corporation Election form for you and include it with your Incorporation documents.
-
HI Registered Agent - $135
explain
Every Hawaii LLC is required to have an address within the state of Hawaii where
official and legal correspondence can be delivered.
The individual or company that is registered with the state of Hawaii to receive all correspondence
on behalf of the LLC is called a Registered Agent.
You may act as your own Registered Agent, however, many LLCs hire a Registered Agent because they don't have a physical address within
Hawaii or to provide a distinct level of privacy.
We can act as your Hawaii LLC Registered Agent.
This is an annual service.
We will forward all correspondence to you and will remind you when it is time to renew your HI Registered Agent services.
-
Customized Operating Agreement - $75
explain
An Operating Agreement defines the rules by which a Hawaii LLC must operate.
Operating Agreements may include requirements for profit sharing, ownership responsibilities and almost anything else that
involves the management and operation of the Hawaii LLC.
Although an Operating Agreement is not required in the state of Hawaii, it is highly advisable to have one for your Hawaii LLC.
As your Hawaii LLC grows over time, you may amend your Operating Agreement as necessary.
You do NOT file an Operating Agreement with the Hawaii Department of Commerce and Consumer Affairs. It should be stored in a secure location along with your other LLC documents.
-
HI Good Standing Certificate - $41
explain
A Hawaii Good Standing Certficate is proof of the existence of your new Hawaii LLC.
The Certificate is issued by the Hawaii Department of Commerce and Consumer Affairs and is proof that your HI LLC is not behind on any
of its Hawaii Department of Commerce and Consumer Affairs Corporate obligations.
A Hawaii Good Standing Certificate is often required for loans, to apply for business licenses, or for tax or other business purposes
in the state of Hawaii or in any other state.
We can get your Hawaii Good Standing Certificate immediately after the Hawaii Department of Commerce and Consumer Affairs has approved your Articles of Organization.
-
Federal EIN - $65
explain
An FEIN is like a Social Security Number for your Hawaii LLC.
We can get your FEIN on the same day that your Articles of Organization are approved by the Hawaii Department of Commerce and Consumer Affairs.
You can get your FEIN before your articles are approved by the Hawaii Department of Commerce and Consumer Affairs but it's a good idea to wait until
after approval.
Your filing may be rejected or the LLC name that you want may not be approved.
Changing information on an FEIN filing is not a trivial exercise with the IRS.
-
LLC Kit and Seal - $99
explain
While you're not required to have a LLC Kit and Seal for your new Hawaii LLC they do come in handy.
The HI LLC Kit consists of a beautiful customized binder, member certificates, a member ledger
and your custom LLC Seal.
The LLC Seal is used to emboss important company documents, such as member certificates.
The binder also includes dividers so you can use it for all of your Hawaii LLC record keeping.
-
Business License Research - $175
explain
Most new Hawaii LLCs are required to get some kind of state, regional or local permits or business licenses.
The task to figure out exactly what you need can be daunting.
We can determine exactly which forms you need to fill out, fill them out for you and file the forms with the appropriate government agency
where possible.