Step 1: Follow Your Hawaii LLC Operating Agreement
For most LLCs, the steps for dissolution will be outlined in the operating agreement. Some common dissolution steps include:
- Holding a vote with LLC members to dissolve the LLC
- Recording the dissolution vote in the LLC’s meeting minutes
- Determining the formal date of dissolution
- Distribution of LLC assets
- Notifying creditors and settling any business debts
If your LLC does not have any set dissolution procedures in its operating agreement, you should consult the state for further instruction.
Step 2: Close Your Business Tax Accounts
Every active Hawaii LLC has various tax accounts that are maintained by different departments within the Hawaii State government. Before you can dissolve your LLC, you must first pay off all taxes and/or fines owed to these accounts.
Here are some of the common taxes your LLC may owe:
- If you have or have had employees in Hawaii:
- Unemployment Insurance Tax
- Employee Withholding Tax
- If your LLC sells or has sold taxable goods or services in Hawaii:
- Hawaii's Excise Tax
Closing your tax accounts usually involves simply filing a final return to the appropriate agency. However, some accounts require submitting other official paperwork. If you need assistance in closing your tax accounts, it may be helpful to hire a Certified Public Accountant.
NOTE: None of your LLC's tax accounts can be closed if they have a remaining balance. All taxes, penalties, fees, and interest must be paid in full before you can dissolve your LLC.
Step 3: File Articles of Dissolution
Hawaii requires business owners to submit their Articles of Dissolution by mail, email, fax, in person, or online.
File the Hawaii LLC Articles of Dissolution
OPTION 1: File by mail, fax, email, or in person
OPTION 2: File online
Filing Fee: $25
Department of Commerce and Consumer Affairs
Business Registration Division
P.O. Box 40
Honolulu, HI 96810
Deliver in person to:
335 Merchant Street
Honolulu, HI 96813
Fax: (808) 586-2733
You can also have a professional service provider file your Articles of Dissolution for you. Incfile prepares the Articles of Dissolution for you, and files them to the state for $149 + State Fees.