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

hawaii_state_seal

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

Our Rating & Pricing

Top Features

Learn More

#1 TOP PICK

Free LLC Setup

  • 1 year free agent service

  • Digital storage

  • Different types of plans

FAST SERVICE

$49 + State Fees

  • Lifetime business support

  • 100% accuracy guarantee

  • Expert customer support

$299 + State Fees

  • Fast service

  • Resource center

  • Flat Rate for all services

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

How much does it cost to maintain an LLC in Hawaii? While most states require you to pay taxes on your business, some may not. There are certain fees and taxes that an LLC must pay. In Hawaii, you must file an annual report with the state. This report must be filed yearly. The fees are one-time, and you can do it online or by mail. Make sure you know the exact amount before you file.

The first year of LLC formation costs $10 and $20, and the second year costs $20. There are no late fees, but you must pay a $100 delinquency fee if your company fails to file annual reports. In addition, you must pay a registered agent service. If you fail to file an annual report, your LLC must pay a delinquency fee of $100. This fee is minuscule compared to the costs of operating a corporation. It is highly recommended that you hire a company that can prepare your Hawaii annual report.

The State of Hawaii has the right to charge a late fee for failure to file annual reports. In Hawaii, you can be charged a $100 delinquency fee for failing to file annual reports, but this fee can be waived if you file your annual reports on time. A registered agent service is also recommended. However, it is best to avoid any late fees at all costs. It’s important to understand that these fees are small when compared to the costs of running a corporation in the state of Alaska.

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.

Leave a Comment