LLC Cost in Hawaii – How Much to Pay for an LLC


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Perhaps you are hoping to form a Hawaii LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Hawaii.

Hawaii LLC Cost of Filing

Here are the costs involved in forming an LLC in Hawaii.

Cost of Filing Formation Certificates

The Hawaii Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Hawaii Secretary of State

Hawaii Domestic LLC

  • Online filing costs $50
  • Annual Report filing costs $12.50
  • Name Reservation fee costs $10
  • By mail: Fill out the Application form PDF, and submit it to the following address: Business Registration Division, 335 Merchant Street, P.O. Box 40, Honolulu, Hawaii 96810

Hawaii Foreign LLC

  • Online filing costs $50
  • Annual Report filing costs $12.50
  • Name Reservation fee costs $10
  • By mail: Fill out the Application form PDF, and submit it to the following address: Business Registration Division, 335 Merchant Street, P.O. Box 40, Honolulu, Hawaii 96810

Visit the Official Hawaii of State Hawaii Business Express website to learn more about business services and forms and fees.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Hawaii LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Hawaii, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

LLC Service

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$99 per year

  • Standalone registered agent service

  • Take you through all steps

  • LLC formation package available

$125 per year

  • 1 year free service along with LLC formation package

  • Fast service

  • Flat rate, no hidden cost

Business Permits and Licenses 

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Hawaii Department of Revenue for regulatory boards or agencies requiring licensing. 

Hawaii LLC Taxes to be Paid

The business LLCs in the State are subject to different State Tax filing obligations. Though the taxes may vary from county to county.

Hawaii State Income Tax

This is the State Tax levied on any income you pay to yourself. The tax rate varies between 1.4% to 8.25%, depending on the total amount of taxable income.

Hawaii Sales Tax

Hawaii does not have a sales tax. Instead, it has a General Excise Tax (GET) which is fixed differently for different sales activities, such as 0.15% for Insurance commission, 0.5% for wholesaling, manufacturing, producing, wholesaling, and 4% for all others.

Hawaii Federal Self-Employment Tax

Any profit that a Hawaii LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.

Hawaii LLC Employer Payroll Tax Withholding

If you hire employees in Hawaii, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.

Cost Comparison Among States

Every state has different costs of filing for an LLC to their respective State Authorities. If you want to get a better understanding of the costs of opening an LLC in a different state in comparison to Hawaii, read the table below:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax
Hawaii LLC$50$12.50 (Annual)Varying General Excise Tax
Alaska LLC$250$100 (Biennial)0%
Oregon LLC$100$100 (Annual)0%
California LLC$70$800 (Annual)7.25%
Washington LLC$200$60 (Annual)6.5%

Tourism is the largest contributing sector to Hawaii’s economy. Other major industries include service, transportation, retail trade, healthcare, and education.

Other Costs

How Much Does It Cost to Maintain an LLC in Hawaii

To maintain an LLC in Hawaii you will need to pay an annual fee of $12.50 along with income tax at 1.4% to 8.25%, general excise tax at 9% and federal taxes.

As an employer in Hawaii, you will need to pay income tax and state and federal unemployment insurance taxes. You will also need a federal employer identification number (FEIN) to open business bank accounts and protect your personal assets. The following article will explain the costs and benefits of forming an LLC in Hawaii. While forming an LLC is not difficult, it is important to be aware of the costs of operating and maintaining the business.

When forming an LLC in Hawaii, you must file an Articles of Organization, which registers your business in the state. These documents cost $50 each. Additionally, you may need to file other documents such as an Articles of Incorporation and a Certificate of Good Standing, which will cost you another $50. In Hawaii, certain types of LLCs may require licenses or permits. While some businesses may have licensing requirements in Hawaii, most of them are regulated by local municipalities.

You can file all necessary documents yourself or choose a registered agent service. However, you must make sure that you will be able to receive service of process and mail. A registered agent will cost you around $100 per year. The service can protect your personal information from prying eyes. By hiring a registered agent, you will get peace of mind and protection for your business. You can also choose a registered agent service for your LLC.

If you are not sure how to organize the documents, consider drafting an operating agreement. In this document, the owners outline the business’s management structure, how employees share ownership, and how much the company can afford to pay. In addition, an operating agreement is a good idea, even if the state doesn’t require it. It may help prevent disagreements about ownership and contractual obligations. A Hawaii operating agreement does not have to be formal, but it’s a good idea to have one.

A physical address is also required to operate an LLC in Hawaii. Unlike many states, P.O. boxes are not allowed in Hawaii. You must also maintain regular hours and accept legal notices. In addition, you must file your Articles of Organization in Hawaii. This document can be submitted online or in person, and will become part of public record. It is recommended to hire a registered agent service if you plan on operating your business in Hawaii.

Another step in the process is to choose a name for your company. Your business’s name sets it apart and will tell potential customers who you are and what you do. Think carefully and choose a name that represents your mission. Make sure the name you choose falls within Hawaii’s LLC guidelines. You’ll need to include the word “LLC” in your full name. If you have a business address in Hawaii, make sure it has that address as well.

Another expense involved in operating an LLC in Hawaii is the filing of annual reports. These are required for all LLCs in Hawaii. Filing them will cost you $15. This fee must be paid within the calendar quarter after the formation of the LLC, so it would fall between July 1 and September 30. If you are not planning to file your annual reports right away, the state will send you a reminder through the mail.

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

In Conclusion

The cost of Hawaii is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.

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