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.

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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.

Whether you are planning to form a business in Hawaii or you are already in business, you need to know how much it will cost to maintain an LLC. The cost of maintaining an LLC in Hawaii varies depending on the nature of your business and the type of entity you want to form. Fortunately, there are several different ways you can keep your business costs down.

The first step in forming an LLC in Hawaii is to choose a legal name for your business. You should avoid using the same name as another business entity, especially if it is already registered. If you are unsure of the legal status of a name, you can search for available names on the Business Registration Division’s website. If the name you choose is available, you can reserve it with a small fee.

The next step is to choose a registered agent for your LLC. The registered agent is the person who receives legal documents on behalf of your LLC. You can choose to hire an individual, a business, or both. It is important to find a registered agent who is trusted and who will help you keep up with your filings. A registered agent can save you from being penalized for late filings and from dealing with disputes over legal issues. You should also choose a registered agent who has a physical address in Hawaii.

You may be required to register for a business license in Hawaii. The license requirements vary from municipality to municipality and are usually regulated by local municipalities. Depending on the type of business, you may be required to pay a license fee on an ongoing basis or on an ad hoc basis. You may also be required to pay taxes on your income. Failure to pay taxes can result in severe penalties and can shut your business down.

The second step in maintaining an LLC in Hawaii is to file an annual report with the state. This report is required by law, and is a public record of your business’s information with the state. Failure to submit an annual report can result in severe penalties and can result in your business being shut down.

The final step in maintaining an LLC in Hawaii is to obtain a Certificate of Good Standing. This is a document issued by the Hawaii Department of Commerce and Consumer Affairs. You can obtain this document online or by mail. The process can take up to seven days. You will need to pay a fee to have a certificate mailed to you. If you are a business that hires employees, you will also be required to report your LLC to the Hawaii CSEA.

You will also need to pay a fee to file your annual report with the Department of State. This fee is $10, and you will have to pay this fee annually. If you file your annual report late, you will be charged a $10 late fee.

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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