How To Start An LLC in Hawaii

Do you want to start an LLC in Hawaii, and do you need a guide? Don’t worry; we got you covered.

Starting an LLC is easy with this guide on how to start an LLC in Hawaii.

All LLC formation in the United States requires some steps and requirements.

So this article will expose you to the simple steps on how to start an LLC in Hawaii.

How To Start An LLC In Hawaii

To start an LLC in Hawaii, you must go through some steps and meet all the requirements.

You must also file the Articles of Organization online with the Hawaii Department of Commerce and Consumer Affairs.

The Articles of Organization is an official document for your Hawaii limited liability company.

You can file this document for $50 online.

Steps to Start an LLC in Hawaii

To start your LLC in Hawaii, here are easy steps you to follow below:

Select a Name For your LLC
Appoint A Registered Agent in Hawaii
File the Articles of Organization
Create an Operating Agreement
Get an Employer Identification Number (EIN)

However, if you find these steps daunting, you can seek professional services.

Select a Name For your LLC

To start with, you must choose a name for your company in Hawaii.

However, ensure the names you desire haven’t been chosen and are easy to search for.

Meanwhile, there are requirements when selecting a name for your LLC.

Here are some guidelines to follow when choosing a name for your LLC:

Your business name must include ability company” or its abbreviations (LLC or L.L.C.).
Ensure that your name is distinguishable from any other Hawaii limited liability company, corporation, limited partnership, or registered limited liability partnership business name.
Ensure the name you desire isn’t already taken by doing a Business Entity Search on the Hawaii Secretary of State’s website.
Your business name cannot contain words used to name a government agency (i.e., State Department, CIA, FBI, Treasury, etc.)
Also, it can’t contain certain restricted words like bank, lawyer, attorney, credit union, etc.
Ensure to Reserve the name once you find the availability: You must complete the Name Reservation Request for Domestic Entities form at least two weeks before registration or reserve your business name when completing the online LLC registration.
Consider if the URL is available: Check online to see if your business name is known as a web domain. If it is, you may want to buy the URL to prevent others from acquiring it.

Appoint A Registered Agent in Hawaii

After choosing a name following the requirements, you must appoint a Registered Agent for your Hawaii LLC.

A registered agent is a person or business entity that can receive necessary tax forms, legal documents, a notice of lawsuits, and official government correspondence on behalf of your business.

Your registered agent must be a full-time resident of Hawaii or a corporation authorized to conduct business in Hawaii.

Also, you may appoint an individual within the company, including yourself, to serve as the registered agent as long as:

They provide registered agent services.
They have an address in Hawaii.
They are on-site and available to accept documents during regular business hours.

File Your LLC Articles of Organization

To register your LLC in Hawaii, you must file the Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs.

You can do it online, by mail, by fax, email, or in-person with a non-refundable fee of $50.

Mailing Address:

Department of Commerce and Consumer Affairs

Business Registration Division

335 Merchant St.

P.O. Box 40

Honolulu, HI 96810

Office Address:

335 Merchant St.

Room 201

Honolulu, HI 96813

Fax: (808) 586-2733

Email:breg-doci-filing@dcca.hawaii.gov

Create Your Operating Agreement

Even though operating agreements are not a must for LLCs in Hawaii, it is recommended and good practice to get one.

An operating agreement is a legal document stating the ownership and operating procedures of a limited liability company.

However, it ensures that all business owners are on the same page and reduces the risk of future conflict.

You can request an EIN from the IRS or by Mail or Fax

Mail to:

Internal Revenue Service

Attn: EIN Operation

Cincinnati, OH 45999

Fax: (855) 641-6935

Get an Employer’s Identification Number

Employers Identification Number is a nine-digit number assigned by the Internal Revenue Service (IRS) to help specify businesses for tax purposes.

Also, It is virtually a Social Security number assigned for businesses.

It can also be referred to as a Federal Tax Identification Number (FTIN).

The Employer’s Identification Number is required to:

Open a business bank account
File and manage Federal and State Taxes
Hire employees

However, you can get EIN free via the online or email process.

You can request for EIN from the Internal Revenue Service

What To Do After Forming an LLC in Hawaii

Having learned how to start an LLC in Hawaii, it is essential to protect your business.

You can protect your business by carrying out some legal steps and separating your personal and business assets to avoid the risk that your LLC is sued.

You can also follow these steps below to protect your LLC in Hawaii:

Get a business credit card

Getting a business credit card helps you separate all business expenses for end-of-year tax purposes.

It also helps you build your business credit score, which is essential for getting a line of credit or business loan.

In addition, it allows you to keep track of department expenses by issuing multiple cards to your employees.

Hire a Business Accountant

To prevent your business from overpaying on taxes while helping you avoid penalties, fines, and other costly tax errors, you may have to hire a business accountant.

Doing this makes bookkeeping and payroll easier, giving you more time to focus on your growing business

Furthermore, it helps you manage your business funding more effectively, discovering areas of unforeseen loss or extra profit

Get Your Business Insurance

Getting business insurance helps you manage risks and focus on growing your LLC.

The common types of business insurance are:

General Liability Insurance:

This broad insurance policy protects your business from lawsuits.

Professional Liability Insurance:

This business insurance is for professional service providers (consultants, accountants, etc.) and covers malpractice claims and other business errors.

Workers’ Compensation Insurance:

This type provides coverage for employees’ job-related illnesses, injuries, or deaths. In Hawaii, businesses with one or more employees, excluding officers and LLC members, must have workers’ compensation insurance.

Create Your Business Website

To legitimize your business, you need to create a business website.

Every business needs a website to avoid missing out on a large percentage of potential customers and revenue.

Send Out a Press Release

To provide publicity, you need to do press releases to promote your business.

This is because they are also one of the most cost-effective strategies to establish your brand presence on the web.

Keep Your Business Licenses and Permits

You must comply with federal, state, and local government regulations to operate your business in Hawaii.

You must obtain and keep your business licenses and permits from your state.

Tax Filing Requirements

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

You must register for sales tax if you are selling a physical product; you’ll typically need to register for a seller’s permit online through the State of Hawaii website.

Georgia Sales Tax

This is required if you are selling a physical product. You must register for a seller’s permit.

Meanwhile, the certificate allows a business to collect sales tax on taxable sales.

Employer Taxes

If you have employees working in your LLC in Hawaii, you must register for Unemployment Insurance Tax and Employee Withholding Tax online through the State of Hawaii website.

File Your Annual Report

You can file an Annual Report Online with the Department of Commerce for a nonrefundable fee of $12.50.

How to Start A Foreign LLC in Hawaii

If you have an existing LLC and you want to extend the business to Hawaii, you need to register as a foreign LLC.

This is because forming a foreign LLC allows your company to operate as one entity in multiple states. If you have an existing LLC and want to do business in Hawaii, you must register as a foreign LLC. This can be done online.

You can do this by filing online with the Hawaii Secretary of State for a nonrefundable fee of $50.

You can also file by mail via

Mail to:

Department of Commerce and Consumer Affairs

Business Registration Division

335 Merchant St.

PO Box 40

Honolulu, HI 96810

How to Obtain a Certificate of Good Standing in Hawaii

With a certificate of good standing, your business is verified that it was legally formed and adequately maintained in Hawaii.

Meanwhile, you can order a Hawaii LLC Certificate of Good Standing online for a $7.50 Nonrefundable fee via the Hawaii Department of Commerce & Consumer Affairs

We hope this article answers your questions on how to start an LLC in Hawaii.

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