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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  • EIN & Website Included

  • Operating Agreement Included

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.

Several factors play a role in the cost of forming and maintaining an LLC in Hawaii. In most cases, Hawaii requires that your business have a valid license, such as a general business license. In addition, you need to pay for various state and local taxes, such as unemployment insurance and income taxes for employees. In addition, you will need to file for a federal employer identification number in order to open business bank accounts and protect your personal assets. If you have no idea how much these fees will be, you can visit the Department of Revenue website.

One of the most crucial components of LLC maintenance in Hawaii is filing the articles of organization. These are documents defining the company name, mailing address, registered agent, and members. These must be filed with the Business Registration Division of the Department of Commerce and Consumer Affairs for a fee of $50. After filing the articles, keep them with your other important documents. Another important document to keep with your LLC is an operating agreement, which sets the rules and expectations of the business.

An annual report is also a vital part of Hawaii LLC maintenance. These reports contain information about the company’s name and mailing and principal address, a description of the business, and the registered agent’s name and address. Additionally, the report also lists if the business is managed by its members or by a manager. The name and signature of each person or entity should be legible, or the annual report should be deemed invalid.

Besides filing the Articles of Organization, all LLCs in Hawaii must appoint a registered agent. This person acts as the main contact for the state and accepts service of process in the event of a lawsuit. When you form your LLC through ZenBusiness, the registration agent service is included free of charge for the first year. The company’s website will provide you with all the necessary information for your LLC formation.

For those who are starting a business without an attorney, forming an LLC is an easy and affordable way to go. Hawaii’s Secretary of State website has a tool to help you check for available business names. The website will also give you the ability to determine if the name of a business is already used by another entity in the state. In addition, Hawaii is one of the few states where you can form an LLC without the assistance of an attorney.

You should make sure to make payments on your Hawaii taxes. If you aren’t sure where to start, consider hiring a registered agent service. This will allow you to save time and money on filing your taxes. As an added bonus, you will be able to get the documents and information you need at the shortest possible time. Remember that this is a one-time fee, so it’s worth it to invest in your business.

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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