How To Set Up An LLC In Hawaii (2024 Guide)

Doing a few things before establishing your LLC will help make the process run smoothly. While there aren’t many steps involved in establishing a Hawaii LLC, you don’t want to miss anything and delay your company’s formation.

Check Name Availability

Before you settle on a name, make sure that you check its availability with the Department of Commerce and Consumer Affairs. Having a unique business name ensures that other companies don’t have names that are too similar, creating confusion for consumers. It only takes a few minutes to see if your name is available.

Enter the name that you wish to use to register your business, and the system will search all known business names in the state. A list of matching names will appear if there are any. Adjust your name so that there are no potential conflicts with other companies.

If you want to reserve a name, you can do so for up to 120 days in Hawaii. You’ll need to establish a Hawaii Business Express account to reserve your entity name, which costs $10.

Identify a Registered Agent

A registered agent is a person who is authorized to accept legal and official documents for the company. In the state of Hawaii, the registered agent can be a person in the organization and ―it can even be you. The registered agent must have a local physical address to accept documents, and a post office box will not be sufficient.

If you don’t reside in the state of Hawaii, you’ll need a local registered agent. You can hire one to be your official representative. Professional registered agents usually cost $50 to $300 annually. Make sure the registered agent is reputable and will forward the necessary documents to you as needed.

Reserve Your Web Domain

Just as you search to see if your business name is available, you’ll also want to see if the domain name is available. There is little more frustrating than trying to establish your website and realizing that another company has already registered your business name.

Popular domain search engines are found at places, such as GoDaddy or HostGator. These sites will allow you to search for a domain name for free. If you find what you are looking for and it isn’t a name already taken by another business, go ahead and buy the domain. Most domains cost anywhere from 99 cents to $49.99. Some premium names may be priced at thousands of dollars. Determine what fits in your business plan and reserve your domain name.

To register an LLC in Hawaii you need to complete Form LLC-1 (Articles of Organization for Limited Liability Company). This document includes:

• Company name
• Mailing address
• Registered agent name and address
• Names of the business organizers
• Length of duration for the business
• Names and addresses of managers
• Member liability

It will cost you $50 to register your LLC in Hawaii with the Hawaii Department of Commerce and Consumer Affairs Business Registration Division, plus an additional $1 State Archives fee. Filing online is the fastest way to complete the paperwork. It takes one to three days to process online orders with a $25 expedited processing fee. It will take three to five business days to process if you don’t need it expedited.

You can also file the forms in person or mail them.

You can mail documents to:

PO Box 40
Honolulu, HI 96810

You can also deliver them in person to:

335 Merchant St., Room 201
Honolulu, HI 96813

Mailed LLC forms take seven to 14 business days to process. Documents handed in person takes three to five business days.

Once you have filed the forms, you’ll want to get started on the other forms and documentation needed for your company. Here are some important next steps in setting up your LLC.

Create an Operating Agreement

The operating agreement is a document that outlines how you intend to run the LLC. While it is not a required state form, it is important because it contains voting rights, member and manager responsibilities, rules for running the business and descriptions of how ownership can be transferred. You can use a template or create one from scratch. Keep this document in your company record binder.

Get an Employer Identification Number

The EIN is a tax identification number (TIN) with nine digits that is sometimes called a Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN).  Obtaining it will allow you to open a bank account and file taxes under the LLC’s name. Getting an EIN is free. You can apply for an EIN by visiting the IRS website using the information in your articles of organization.

According to IRS regulations, an LLC with more than one member must get an Employer Identification Number (EIN). Single-member LLCs need one if they have any employees or choose to be taxed as a corporation or S corp.

Single-member LLCs with no employees have the option of using the owner’s Social Security number instead, but all other LLCs must have an EIN.

Once you get the EIN, keep a copy of the official document in the company record binder with other important documents.

Obtain Hawaii Tax ID Numbers

You’ll also need a Hawaii tax ID number to operate your business in the state properly. Obtain the tax ID number by completing Form BB-1 (State of Hawaii Basic Business Application). This application is available online at Hawaii.gov.

This is a consolidated state tax registration application. It allows you to get the required state tax, employer licenses and permits, including the Hawaii general excise tax (GET) license. It will also be used to determine your withholding tax account and your unemployment insurance (UI) tax account.

Domestic Hawaii LLC Annual Report

You’ll need to complete a Hawaii Domestic LLC Annual Report each year. This report can be completed online and has a $15 filing fee associated with it. You must file these annual reports in the quarter that contains the registration anniversary date. Failure to file this report can result in a $10 yearly penalty and, ultimately, the dissolution of the business if not done for two years.

It is possible to amend a document that was filed with the Department of Commerce and Consumer Affairs. You’ll need to download Form X-3 (Correction Form) and complete the form and attach any updated information. There is a $25 fee. You can email, mail or drop off the completed form to the addresses above used for the Articles of Organization.

If your company is no longer operating in Hawaii, you can terminate it with the state. File Form LLC-11 (Articles of Termination). This can be done online by going to the business search section and finding your company name. Open the record and then search for the Articles of Termination form in the appropriate forms tab. Complete the form and submit it. It may take up to 14 days to process your request.