Price to Form LLC in Hawaii: Various Costs Revealed for Hawaii LLC
Although you have enormous ideas, you will need to make a little investment before your company can truly take off. The price to establish a limited liability company in Hawaii is $50. (LLC). Upon submission of the LLC’s articles of organization, this fee is paid to the Hawaii Department of Commerce and Consumer Affairs.
There are beginning fees involved with starting an LLC in Hawaii, and we’re not just talking about office space rental or staff salaries.
Make sure you take into account all of the potential startup fees for an LLC. Here, we’ve created a list of the most typical beginning costs in Hawaii to aid you.
The majority of business owners are aware that registering their LLCs with the state would cost them money. However, we’ve discovered that several consumers are unaware of all the additional expenses that may apply, such as LLC formation fees, registered agent fees, Annual Report fees, taxes, and so on. Let’s take a deeper look at all of the potential charges of forming a Hawaii LLC.
- Hire Professional Help to Form an LLC in Hawaii
- Forming LLC in Hawaii: Various Costs
- Total Costs for Hawaii LLC Breakdown & Best Options
- Other Fees for Forming a Hawaii LLC
- How to Form a Hawaii LLC on Your Own?
- Steps to Take After Creating an LLC
- FAQ: Forming LLC in Hawaii: Various Costs
- Receive expert guidance for setting up an LLC in Hawaii
- In Conclusion
Forming LLC in Hawaii: Various Costs
|Fee for filing an LLC in Hawaii Online
|Annual Report Fee in Hawaii
|$12.50 (online) / $15 (mail)
|Fee for Registered Agent
|$39 on its 1st yr.
|Cost to form a Hawaii Foreign LLC
|Reservation of Hawaii LLC Name
|Name of “Doing Business As”
|Certified Document Copies
|Good Standing Certificate
$50 – Fee for filing an LLC in Hawaii Online
The $50 charge to register your LLC’s Articles of Organization online with the Hawaii Department of Commerce and Consumer Affairs is the most expensive aspect of incorporating an LLC.
$12.50 (online) / $15 (mail) – Annual Report Fee in Hawaii
The Department of Commerce and Consumer Affairs in Hawaii requires LLCs to file an annual report. For $12.50, you may submit this form online through Hawaii Business Express, or for $15, you can file it by mail or in person. It is to be submitted by the end of the calendar quarter in which the LLC was established. Failure to file on time incurs a $10 penalty in Hawaii.
$39 on its 1st yr. – Fee for Registered Agent
In Hawaii, you can be your own registered agent, but choosing a registered agent service keeps your firm compliant and reminds you of critical filing dates so you don’t have to pay late penalties.
Registered agent fees start at $39 USD for the first year. ZenBusiness is the finest LLC service that handles the paperwork and costs $40 less than a service like LegalZoom if you need assistance creating an LLC:
They are a Texas-based corporation that has established more than 300,000 enterprises and racked up countless 5-star evaluations. Although there are other options accessible to form an LLC, ZenBusiness has distinguished itself as the finest. dependable, swift, and inexpensive.
$50 – Cost to form a Hawaii Foreign LLC
If you currently have an LLC in another state and want to extend your business into Hawaii, you’ll need to register it as a foreign LLC in Hawaii. The cost of forming a foreign LLC in Hawaii is $50. An Application for Certificate of Authority for Foreign Limited Liability Company can be used to register a foreign LLC in Hawaii (Form FLLC-1).
Permits and Licenses for Businesses
To lawfully operate in Hawaii, your company may need federal, state, and municipal permits/licenses, depending on its industry and geographic area. This is true whether you create an LLC or any other sort of business entity.
Total Costs for Hawaii LLC Breakdown & Best Options
|Who forms the LLC?
|You form the LLC in Hawaii yourself
|$80+ ($12.5+ Annual Report + $10 LLC Name + $7.50 Good Standing Certificate + $50 Article of Organization)
|by using ZenBusiness
|by using Northwest Registered Agent
|see our other top-rated LLC service providers
Other Fees for Forming a Hawaii LLC
There are a few extra costs involved with forming an LLC:
$10 – LLC Name Reservation Fee
Although it is not necessary to reserve a business name in order to form an LLC, doing so might be useful if you want to prevent other businesses from using your name but aren’t ready to submit your Articles of Organization. Whether you file electronically or by postal mail, the cost is $10. However, it’s more effective to just begin writing your Articles of Organization, which will formally register your LLC name, if you’re ready to launch your firm.
To be clear, name reservations aren’t often essential and aren’t mandated by most states. Simply forming your LLC can be a better option if you’re worried that someone else will register the name you desire.
$50 – Name of “Doing Business As” (DBA)
To design a name different than your official LLC business name, fill out an Application for Registration of Trade Name (Form T-1) and pay the $50 filing fee.
$10 – Certified Document Copies
For a fee of $10, you may get certified copies of your Hawaii business documents from the Department of Commerce and Consumer Affairs.
$7.50 – Good Standing Certificate
A Hawaii certificate of good standing can be obtained by placing an order with the Department of Commerce and Consumer Affairs and paying a $7.50 charge. Banks and lending institutions frequently demand a certificate of good standing.
How to Form a Hawaii LLC on Your Own?
LLC Hawaii is a stunning destination. To incorporate a Hawaii LLC, you must pay $50 to the Department of Commerce and Consumer Affairs for the Articles of Organization. Your application can be submitted online, via mail, fax, email, or in person. The Articles of Organization are the official legal documents that form the foundation of your Hawaii limited liability company. In Hawaii, there are five basic steps to forming an LLC:
Step 1: Choose a Name for Your Hawaii LLC [Price: $10]
When naming your Hawaii LLC, make sure it meets the following criteria:
- Is legal to use in the state of Hawaii and complies with Hawaii’s name laws.
- Is it possible to purchase a web domain?
The first and most significant step in forming a Hawaii LLC is deciding on a name. Make sure your name conforms with Hawaii’s naming regulations and is easily searched by potential customers.
1. Stick to the naming conventions:
- The word “limited liability company” or one of its acronyms must be in your name (LLC or L.L.C.).
- Your Hawaii LLC’s name cannot contain any terms that may cause confusion with a government agency (FBI, Treasury, State Department, etc.).
- Restricted terms (e.g., bank, attorney, university) may necessitate additional documentation and the inclusion of a licensed professional in your Hawaii LLC, such as a doctor or lawyer.
2. Availability of Hawaii names.
Do a company name search on the Hawaii State website to be sure the name you choose isn’t already used.
3. Does the URL exist?
We suggest looking online to see whether your company name is accessible as a web domain. Even if you don’t intend to create a company website right now, you may wish to purchase the URL to prevent others from doing so.
4. Do I need a DBA or a Trade Name for my company?
A DBA isn’t required for most LLCs. The LLC’s name can also be used as your company’s brand name, and you can take cheques and other forms of payment under that name. If you want to do business under a different name, you might want to register a DBA.
Step 2: Choose a Registered Agent [Price: $39 on its 1st yr.]
Choosing a registered agent in Hawaii is an important step in the formation of your LLC. Your registered agent is responsible for ensuring that your company complies with Hawaii business laws and for handling sensitive legal and tax documents. In essence, you want a dependable representative.
You can serve as your own LLC’s registered agent, but this adds additional responsibility for keeping track of paperwork and any legal concerns. At times, it makes more sense to delegate the duty to a skilled individual. You may avoid penalties for late filings and the stress of having to do it yourself by employing a registered agent service to ensure that your yearly reports and other paperwork are done correctly.
Because not all registered agent services are created equal, you must exercise caution while selecting one. The good news is that Northwest Registered Agent received top marks in our study for you. Northwest will supply you with a registered agent for free for a year when you register your firm, in addition to registered agent services and LLC formation. You may weigh all of your options by reading our guide to Registered Agent Services, even though we believe they are the most dependable option.
If you need to change registered agents or resign as a registered agent in Hawaii, consult our detailed information.
Step 3: File Articles of Organization [Price: $50]
The Hawaii Articles of Organization are the documents that you must fill out and submit to the state in order to incorporate an LLC.
You can file your Hawaii Articles of Organization either by mail or online. From the options below, select your preferred strategy.
GET YOUR HAWAII ARTICLES OF ORGANIZATION
This is the primary document that you must provide in order to establish your Hawaii LLC. The rest of your company’s operations are governed by the state-mandated filing of this document. To file it, you must pay $50 (or $75 if you want it handled soon).
Because you only need to file the Articles of Organization once, once your filing is accepted, you won’t have to pay this charge again.
Your Articles of Organization must include the following information: the name of your LLC, the mailing address of your LLC’s principal office, the names and addresses of your registered agent and organizer, a statement indicating whether or not your business will be run by its members or by a manager, the names and addresses of all of your LLC’s members or managers, the date, and a statement outlining the name a manager.
Option 1: To file your Articles of Organization, create an account on Hawaii.gov. Click “Get Started” under the “Start” section, then “Create an Account” under the “Log In” section. You must provide an email address in order to progress with registration.
– OR –
Option 2: The Articles of Organization are available in PDF format on the Hawaii.gov website. This form must be mailed to the Department of Commerce and Consumer Affairs.
You’re in luck if you need help with this level. Several respectable LLC formation providers will create and submit your Articles of Organization on your behalf. There are other choices for this service, but we recommend ZenBusiness. They provide incredibly low pricing and comprehensive services, and by using our discount code, you may save up to 20%!
Step 4: Create an Operating Agreement [Price: FREE]
An operating agreement should be in place for every Hawaii LLC owner to secure their company’s activities. While an operating agreement is not legally needed by the state, it will create clear norms and expectations for your LLC while also establishing your legitimacy as a legal company.
Although an operating agreement is not necessary when forming an LLC in Hawaii, it is a good idea to have one.
What is the definition of an operating agreement?
Although not required, it is recommended that your Hawaii LLC have an operating agreement.
The members of a Hawaii LLC are mentioned in the operating agreement, which also defines the actions to take when the firm is dissolved, new members are added, and the company’s name is sold. You can incorporate them in the operating agreement, among other things, to hold all LLC members accountable. Operating agreements serve as the foundation of a business, setting the goals and expectations of all partners.
Even though you are not required to include the operating agreement with your articles of incorporation, it should be kept alongside your other business papers. Each member should sign and have the operational agreement notarized for future use.
You’ll need an operating agreement regardless of the sort of Hawaii LLC you’re forming. This is why:
- The state has recommended it. All members of a Hawaii LLC may engage in an operating agreement to manage the company’s internal activities, according to HI General Statute Chapter 428 Sec. 101.
- It will keep your company partners from fighting. If you’re forming a multi-member LLC, having an operating agreement in place will help you avoid misunderstandings by defining each partner’s position and obligations.
- It aids in the preservation of your limited liability status. If you’re the sole owner of a single-member LLC in Hawaii, an operating agreement will help ensure that your limited liability status is upheld by court officials, as well as boost your company’s overall credibility.
Is it necessary for me to register my operating agreement with the state? No, the operating agreement is a private document that you should save for future reference. Many states, on the other hand, make it mandatory for LLCs to have an operating agreement in place.
Step 5: Obtain an Employer Identification Number [Price: FREE]
You should seek an EIN, or employer identification number, for your company, which is already a federal tax identification number. It is utilized to file taxes and assists the IRS in locating your Hawaii LLC (IRS). You must also register a business bank account and hire personnel.
The Employer Identification Number for your Hawaii LLC can be obtained at the IRS website, by mail, or by fax. We can acquire it for you if you don’t want to deal with that particular government entity. Our EIN service is simple and straightforward.
Create a bank account for your Hawaii LLC.
You may open a business bank account once you obtain an Employer Identification Number. Separate accounts for the company and personal finances are essential for tax purposes because they safeguard money from being misused. Combining your accounts may work against you and make tax preparation more difficult. This may occur if someone filed a lawsuit against you to determine if you and your LLC are truly independent legal entities.
What is the purpose of having an EIN? An EIN is necessary for the following purposes:
What if my single proprietorship already has an EIN? When changing to an LLC, the IRS requires sole proprietorships to get a new EIN.
Where can I obtain an EIN? The IRS will provide you with an EIN for free. Obtaining an EIN is a simple procedure that may be completed online or through the mail.
APPLICANTS FOR AN EIN FROM OUTSIDE THE US: An EIN can be obtained without the need of a Social Security number.
GET AN EIN
Option 1: Request an EIN from the IRS
– OR –
Option 2: Apply for an EIN by Mail or Fax
Internal Revenue Service
Attn: EIN Operation
Cincinnati, OH 45999
Fax: (855) 641-6935
Register Agents provide a one-of-a-kind bank account for your new venture. It allows you to use a debit card and perform an unlimited number of online transactions, among other things. They also provide a banking resolution template to make the procedure easier when you wish to allow more workers of your organization to access the account.
Steps to Take After Creating an LLC
Keep your personal and business assets separate.
When you combine your personal and company accounts, your personal assets (your house, vehicle, and other possessions) are at danger if your Hawaii LLC is sued. This is referred to as penetrating the corporate veil in business law.
You may begin safeguarding your LLC in Hawaii by taking the following steps:
1. Open a business checking account:
- This separates your personal assets from those of your firm, which is required for asset protection.
- It simplifies bookkeeping and tax reporting.
2. Obtaining a business credit card:
- Assists in categorizing and separating all business costs for tax purposes at the end of the year.
- Aids in the development of your business credit score, which is a necessary step in obtaining a line of credit or a business loan in the future.
- Allows you to keep track of department spending by giving your staff various cards (each with a different budget).
3. Hiring a business accountant:
- Avoids overpaying taxes and helps you avoid penalties, fines, and other costly tax mistakes by hiring a company accountant.
- Allows you to concentrate more time on your expanding business by simplifying bookkeeping and payroll.
- Improves the management of your company’s funds by identifying areas of unanticipated loss or profit.
Recruiting Workers in Hawaii
If you want to hire staff, follow these measures to keep in compliance with the law:
- Verify that new hires are eligible to work in the United States.
- Employees should be reported to the state as “new hires.”
- Employees should be covered by workers’ compensation insurance.
- Employee taxes should be withheld.
- Print workplace compliance posters and install them in prominent locations across your office.
What is the minimum wage in Hawaii? The minimum wage in Hawaii is $10.10 per hour.
What is the deadline for paying my employees? Unless the employee and employer acquire special permission from the Hawaii Department of Labor to be paid on a monthly basis, wages must be paid at least twice a month in Hawaii.
FAQ: Forming LLC in Hawaii: Various Costs
Is it required to pay an annual fee for a Hawaii LLC?
Hawaii LLCs must pay a $12.50 annual report fee every year.
Is forming an LLC in Hawaii truly necessary?
An LLC protects you from personal liability. This means that an LLC protects your personal assets in the event of a business failure, such as a lawsuit or unpaid debt. According to us, any small business with even the slightest risk or obligation should form an LLC.
What is the most cost-effective way to incorporate an LLC?
You may save money on an LLC by completing the formation procedure yourself, establishing your own operating agreement, serving as your own registered agent, and acquiring your own EIN.
What is the bare minimum cost of incorporating a limited liability company (LLC) in Hawaii?
The cheapest Hawaii LLC formation fee is $50, which covers the cost of filing your Articles of Organization. All other expenses related to incorporating a Hawaii LLC are optional.
How much does it cost to create a corporation in Hawaii?
In many states, creating a corporation is more expensive than founding an LLC. The filing fee for Articles of Incorporation (the document that starts a business) in Hawaii, on the other hand, is the same as for Articles of Organization: $50.
In Hawaii, how long does it take to form an LLC?
According to the Department of Commerce and Consumer Affairs, LLC formation documents can be processed in 3-5 business days on average. Expedited options, which shorten processing time to 1-3 business days for a charge of $25, are available.
How much does yearly LLC maintenance cost in Hawaii?
The cost of yearly LLC maintenance is mostly influenced by the licenses you need for your sector. While some licensing boards require annual renewals, others do not. Regardless, each LLC will have to pay at least one annual maintenance fee: the $15 annual report fee.
Where can I get additional information on the costs of running a Hawaii LLC?
The Hawaii Department of Commerce and Consumer Affairs maintains a comprehensive list of all Hawaii LLC fees on this page.
How many small businesses are there in today’s Hawaii?
Over 135,000 small companies exist in Hawaii, accounting for all but 0.7 percent of the state’s firms. Small businesses employ more than half of the workers in the state.
What are the most significant state government resources for entrepreneurs?
The Hawaii Small Business Development Center is the main resource for small businesses across the islands, with six locations to support entrepreneurs swiftly and effectively. They do research, provide seminars, and provide other services.
Receive expert guidance for setting up an LLC in Hawaii
It can be difficult and time-consuming to form a Hawaii LLC. It might be beneficial to have some assistance, and we’ve compiled a list of two of the top LLC creation services available.
#1 – In Hawaii, ZenBusiness can help you create an LLC
ZenBusiness provides affordable LLC creation services with many necessary features. The majority of LLCs will benefit from two of these factors. A complimentary year of registered agent service is offered with each and every ZenBusiness package. Their Pro and Premium Packages offer worry-free compliance. As part of this guarantee, ZenBusiness will file your yearly report and inform you of any additional steps you need to take to fulfill the state’s obligations. Worry-free compliance may be purchased for $119 annually by those with the basic plan.
ZenBusiness will help you form an LLC in Hawaii for $50. They have a customer satisfaction rating of 98 percent and over 4500 verified reviews.
We also recommend reading our full review of ZenBusiness.
$0 + State Fees
Review count: 4830+
Form an LLC today with ZenBusiness for only $0 + State fees. They Have 98% customer satisfaction rating and over 4830+ verified reviews.
#2 – Utilizing Northwest Registered Agent, form an LLC in Hawaii
A fantastic LLC creation service with decades of expertise is Northwest Registered Agent. They offer exceptional, expert client service. The privacy they provide is its greatest benefit. They even build their own code and don’t outsource any of their services or sell your information.
Northwest can help you immediately with Hawaii LLC formation. They have over 4150 verified reviews and a 98 percent customer satisfaction rating. A complimentary year of registered agent service will be included!
Review count: 4850+
Form an LLC today with Nortwest. They have 98% customer satisfaction rating and over 4150+ verified reviews. They will include 1 year of free registered agent service!
A regular LLC will be required to pay several of the fees stated above in Hawaii. There might be additional one-time, ongoing, or ad hoc expenses in some exceptional cases that weren’t included above.
In addition, starting an Hawaii LLC isn’t as expensive as it seems.
The total cost shouldn’t exceed:
- $49 if you’re forming a basic LLC with all the basic options with ZenBusiness.
- $39/mo if you’re forming a top-notch LLC with Northwest.
- ~$80 if you’re forming an LLC in Hawaii yourself.
Of course, your LLC will presumably also have to pay federal, state, local, self-employment, payroll, and sales taxes. The Hawaii Business Tax page has further details on taxes.