How Much Does It Cost to Start an LLC in Hawaii?

Hawaii LLC Online Filing Fee: $50

The main cost to start an LLC in Hawaii is the $51 fee to file your LLC's Articles of Organization online with the Hawaii Department of Commerce and Consumer Affairs.

For a look at LLC costs in every state, read our other Cost to Start an LLC and How to Form an LLC guides.

Cost to Form a Foreign LLC in Hawaii

If you already have an LLC that is registered in another state and you’d like to expand your business into Hawaii, you’ll need to register your LLC as a foreign LLC in Hawaii.

The cost for registering a Hawaii foreign LLC is $50. You can register a foreign LLC in Hawaii by filing an Application for Certificate of Authority for Foreign Limited Liability Company (Form FLLC-1).

Optional LLC Formation Costs

There are optional fees associated with LLC formation:

LLC Name Reservation

Reserve your name for up to 120 days prior to LLC formation by filing the LLC Name Reservation Form (Form X-1) and paying the $10 filing fee.

Trade Name

File an Application for Registration of Trade Name (Form T-1) and pay the $50 filing fee to create a name other than your legal LLC business name.

Seven Basic Steps to Start an LLC in Hawaii

Step 1: Name Your Hawaii LLC
Step 2: Choose a Registered Agent
Step 3: File the Articles of Organization
Step 4: Create an Operating Agreement
Step 5: Get an EIN
Step 6: File the Annual Report
Step 7: Keep Your Company Compliant

Step 1: Name Your Hawaii LLC

When you name your Hawaii LLC, you’ll need to choose a name that:

1. Is available for use in the state of Hawaii
2. Meets Hawaii naming requirements
3. Is available as a web domain

Recommended: Visit our Start an LLC in Hawaii guide for detailed naming rules and instructions for registering a business name in Hawaii.

Not sure what to name your business? Check out our How to Name a Business guide and free LLC Name Generator.

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 create a business website today, you may want to buy the URL in order to prevent others from acquiring it.

Step 2: Choose a Registered Agent

All LLCs in Hawaii must appoint a registered agent. A registered agent primarily acts as your LLC’s main point of contact with the state. But most importantly, they are responsible for accepting service of process in the event your business is sued.

Your Hawaii registered agent must:

• Be at least 18 years or older
• Have a physical address in Hawaii
• Be available during normal business hours to accept service of process

Step 3: File the Articles of Organization

The Hawaii Form LLC-1 - Articles of Organization is a document that is filed with the Hawaii Department of Commerce and Consumer Affairs to form an LLC. The fee for filing the Articles of Organization is $50 online.

For detailed instructions for completing the Articles of Organization, visit our How to File the Hawaii Articles of Organization guide.

Step 4: Create an Operating Agreement

An operating agreement isn't required for Hawaii LLCs, 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 an EIN

What is an EIN? An EIN or Employer Identification Number is a nine-digit number issued by the Internal Revenue System (IRS) to identify a business for tax reporting purposes. An EIN is essentially a Social Security number (SSN) for your company.

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

• Opening a business bank account
• Hiring employees

Step 6: File the Annual Report

Hawaii requires LLCs to file an annual report with the Department of Commerce, which keeps your business's information up to date with the state. This can be done online, by mail, by fax, by email, or in person. Hard copy filing fees are $15, while online filings are $12.50.

Due dates for Hawaii LLC annual reports vary depending on which quarter the date of registration falls in. The Department of Commerce and Consumer Affairs provides reminders at the beginning of each filing quarter.

Step 7: Keep Your Company Compliant

To operate your LLC in Hawaii, you'll need to adhere to various federal, state, and local laws. Here's a brief rundown:

• Business Licenses & Permits: In addition to regular licenses and permits, Hawaii mandates all businesses to obtain a General Excise Tax License. These requirements might change based on the nature of your LLC.
• Hawaii LLC Tax Obligations: It's critical to be aware of and fulfill your tax responsibilities. Instead of sales tax, Hawaii imposes a General Excise Tax (GET) on all business activities at a rate of 4%. If you hire employees, you'll need to register for Unemployment Insurance Tax and manage Employee Withholding Tax. The state's individual income tax rates span from 1.4% to 11%, dependent on your LLC's earnings.
• Employee Hiring Procedures: When hiring, verify the work eligibility of your employees in the US, report them as new hires to the state, provide workers' compensation insurance, manage employee tax withholdings, and make sure to place workplace compliance posters in easily seen areas.

Maintaining these elements can ensure the smooth and legal operation of your Hawaii LLC.