How to Start an LLC in Hawaii

Step 1: Name your Hawaii LLC

Choosing a company name is the first and most important step in starting your Hawaii LLC. Be sure to choose a name that complies with Hawaii naming requirements and is easily searchable by potential clients.

1. Follow the naming guidelines:

• Your name must include the phrase “limited liability company” or one of its abbreviations (LLC or L.L.C.).
• Your name cannot include words that could confuse your Hawaii LLC with a government agency (FBI, Treasury, State Department, etc.).
• Restricted words (e.g. Bank, Attorney, University) may require additional paperwork and a licensed individual, such as a doctor or lawyer, to be part of your Hawaii LLC.

For a complete list of naming rules in Hawaii, you can read Hawaii's Naming Guidelines.

2. Hawaii Name Availability. Make sure the name you want isn't already taken by doing a business name search on the Hawaii State website.

To learn more about searching for a Hawaii LLC name, read our full guide.

3. Is the URL available? We recommend that you check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Once you have verified your name is available, you may now select a professional service to complete the LLC formation process for you.

We reviewed and ranked the best LLC services. Find out which is best for you.

Step 2: Choose a Registered Agent in Hawaii

You are required to nominate a Hawaii Registered Agent for your Hawaii LLC.

What is a Registered Agent? A registered agent is an individual or business entity responsible for receiving important legal documents on behalf of your business. Think of your registered agent as your business's point of contact with the state.

Who can be a Registered Agent? A Registered Agent must be a resident of Hawaii or a corporation, such as a registered agent service, authorized to transact business in Hawaii. You may elect an individual within the company including yourself.

Step 3: File Your Hawaii LLC Articles of Organization

To register your Hawaii LLC, you will need to file Form LLC-1 - Articles of Organization with the Department of Commerce and Consumer Affairs. This can be done online, by mail, by fax, by email, or in person.

Now is a good time to determine whether your LLC will be member-managed vs. manager-managed.

For help with completing the form, visit our Hawaii Articles of Organization guide.

If you’re expanding your existing LLC to the State of Hawaii, you will need to form a foreign LLC.

Step 4: Create Your Hawaii LLC Operating Agreement

When creating an LLC in Hawaii, LLCs are not required to have an operating agreement, but it's a good practice to have one.

What is an operating agreement? An operating agreement is a legal document outlining the ownership and operating procedures of an LLC.

Why are operating agreements important? A comprehensive operating agreement ensures that all business owners are on the same page and reduces the risk of future conflict.

For more information on operating agreements, read our Hawaii LLC operating agreement guide.

Step 5: Get a Hawaii LLC EIN

You can get an Employer Identification Number (EIN) from the IRS for free. It is used to identify a business entity and keep track of a business’s tax reporting. It is essentially a Social Security number (SSN) for the company.

Why do I need an EIN? An EIN number is required for the following:

• To open a business bank account for the company
• For federal and state tax purposes
• To hire employees for the company

Where do I get an EIN? An EIN is obtained from the IRS (free of charge) by the business owner after forming the company. This can be done online or by mail.

FOR INTERNATIONAL APPLICANTS: You do not need an SSN to get an EIN. Learn more here.

Step 6: File the Annual Report

Hawaii requires LLCs to file an annual report with the Department of Commerce. This can be done online, by mail, by fax, by email, or in person.

Step 7: Keep Your Company Compliant

Hawaii Business Permits and Licenses

To operate your Hawaii LLC you must comply with federal, state, and local government regulations. For example, restaurants likely need health permits, building permits, signage permits, etc.

The details of business licenses and permits vary from state to state. Hawaii requires all businesses such as sole proprietorships, DBAs, LLCs, corporations (S corp and C corp), partnerships, etc. to obtain a General Excise Tax License. Make sure you read carefully and don't be surprised if there are short classes required as well.

Fees for business licenses and permits will vary depending on what sort of license you are seeking to obtain.

Find out how to obtain necessary licenses and permits for your business or have a professional service do it for you:

• Business License Guide: Use our detailed Hawaii Business License guide.
• Federal: Use the U.S. Small Business Administration (SBA) guide.
• State: Visit Hawaii's Business Licenses.
• Local: Contact your local county clerk and ask about local licenses and permits.

Hawaii LLC Tax Filing Requirements

In order to keep your business in good standing, it's important to stay up to date on your Hawaii LLC taxes.

Depending on the nature of your business, you may be required to register for one or more forms of state tax.

Hawaii General Excise Tax

Hawaii doesn’t impose a sales tax; instead, the state levies a General Excise Tax (GET) on all business activity. Businesses must obtain a General Excise Tax License from the Department of Taxation. 

The General Excise Tax is paid by the business and not the consumer. The state allows businesses to charge their customers GET under most circumstances, but businesses are still ultimately responsible for the payments.

Read our Hawaii General Excise Tax guide to learn more.

Hawaii Employer Taxes

If you have employees in Hawaii, you will have to register for the Unemployment Insurance Tax through the Department of Labor and Industrial Relations. You will also need to sign up for the Employee Withholding Tax through the Hawaii Department of Taxation on behalf of your employees.

Federal LLC Tax Filing Requirements

Most LLCs will need to report their income to the IRS each year using:

• Form 1065 Partnership Return (most multi-member LLCs use this form)
• Form 1040 Schedule C (most single-member LLCs use this form)

How you pay yourself as an owner will also affect your federal taxes. Visit our guide to learn more about how to pay yourself from your LLC.

Hiring Employees in Hawaii

If you plan to hire employees, stay compliant with the law by following these steps:

• Verify that new employees are able to work in the US
• Report employees as "new hires" to the State
• Provide workers' compensation insurance for employees
• Withhold employee taxes
• Print workplace compliance posters and place them in visible areas of your workspace

Common Questions About Hawaii LLCs

Hawaii Business Resources

Get Help Starting a Business in Hawaii

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State of Hawaii LLC Quick Links

• Hawaii Department of Commerce and Consumer Affairs
• Hawaii Business Entity Search
• Hawaii Business Express
• Contact Hawaii DCCA
• SBA's Small Business Resource for Hawaii
• Hawaii LLC Statutes