Start Your LLC In
Hawaii with One IBC

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Discover the Perfect Plan for Your Company

Basic

$199

+ States Filing Fees

Form my LLC

02 weeks processing

Agent fee

Registered Address

Document filing with the Secretary of State

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Standard

$499

+ States Filing Fees

Form my LLC

05 days processing

Includes everything in basic package

Comprehensive name check

Preparation of Articles of Incorporation

Lifetime customer support (phone & email)

Federal Tax ID (EIN) Obtainment Service

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Recommended

Premium

$599

+ States Filing Fees

Form my LLC

01 day processing

Includes everything in standard package

2 hours of free tax consultation

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Key Points for Hawaii LLCs

Flexible Annual Reporting

Hawaii simplifies LLC maintenance with an annual report that’s easy to file online, which supports small businesses and seasonal operations.

Strong Liability Protection

Hawaii LLCs limit members’ and managers’ personal liability for business debts, helping protect personal assets under state law.

Strategic Tax Incentives for Local Businesses

Hawaii provides exemptions and credits for certain LLCs, enhancing profitability in a state with a unique tax landscape.

Understanding Hawaii LLCs

A Hawaii LLC combines the legal protection of a corporation with the operational flexibility of a partnership, making it appealing for entrepreneurs who want liability protection without overly burdensome ongoing requirements.

What is a Hawaii LLC?

A Hawaii LLC is a state-organized entity where members or managers are generally not personally liable for company debts. It allows for either a member-managed or manager-managed structure.

A Hawaii LLC offers several benefits, including:

Limited personal exposure to business debts and judgments. Flexibility in management and internal governance. Predictable annual reporting schedule correlating to formation date quarter, making compliance easier to plan.

Why choose an LLC in Hawaii?

Choosing an LLC in Hawaii gives you strong legal protections, relatively low ongoing cost, and a transparent state regulatory framework. It works well for businesses wanting formal structure without heavy recurring burdens.

Key Benefits Include:

Privacy Protection

No Double Taxation

Business Credibility

Legal Environment

Tax Flexibility

Clear Guidelines

Pros and Cons of an LLC in Hawaii

Starting a Hawaii LLC: Benefits

A Hawaii LLC protects personal assets, has a low one-time filing fee, and relatively inexpensive annual compliance via simple report filings.

Taxation of a Hawaii LLC

LLCs in Hawaii are pass-through by default. Also, businesses must comply with state excise/gross receipts or general excise tax rules depending on their activities.

Starting a Hawaii LLC: Drawbacks

Although formation is affordable, missing annual report deadlines can lead to penalties or administrative termination after periods of non-compliance. Local licenses/permits and state general excise taxes add complexity.

Who Can Form an LLC in Hawaii?

Any individual or business entity (including non-residents and foreign LLCs) may form or register to operate an LLC in Hawaii.

Get Started

Types of LLCs in Hawaii

Domestic LLC (Hawaii-based LLC)

A domestic LLC is formed under Hawaii law using the Articles of Organization. It operates primarily within Hawaii, must have a registered agent in the state, and comply with state annual report requirements.

Foreign LLC (Out-of-state LLC registering in Hawaii)

A foreign LLC formed in another state that wants to transact business in Hawaii must file for a certificate of authority (Form FLLC-1) with DCCA, appoint a registered agent in Hawaii, and pay required fees.

Restricted LLC

Hawaii does not have a formal “Restricted LLC” category under state law for limiting distributions or placing internal restrictions; such provisions must be dealt with via the operating agreement.

Professional LLC (PLLC)

Hawaii does not recognize a separate Professional LLC status. Licensed professionals may organize under other appropriate entities, but not specifically a PLLC under the LLC statute.

How to Start an LLC in Hawaii

Choose a Business Name

Select a unique name that includes "LLC" or "L.L.C." and ensure it’s distinguishable from existing entities in Hawaii. Use the Secretary of State’s name search tool to verify availability.

Appoint a Registered Agent

Designate a registered agent to accept legal documents. This can be an individual or a registered service company with a physical address in Hawaii.

File the Articles of Organization

Submit Form LLC to the Hawaii Secretary of State, providing LLC name, principal office address, and registered agent details.

Create an Operating Agreement

Though not required, it’s recommended to draft an Operating Agreement outlining ownership, governance, and profit distribution to reinforce liability protection and support tax compliance.

Hawaii LLC Requirements

Age and Residency

Number of Members

Management Structure

Registered Agent and Office

Name Compliance

Hawaii LLC Application

To start an LLC in Hawaii, the key step is filing the Articles of Organization (Form LLC-1) with the Hawaii Department of Commerce & Consumer Affairs, Business Registration Division. This officially creates the LLC.

Required Information

LLC name (must include “Limited Liability Company”, “LLC”, etc.), be unique in Hawaii.
Registered agent name and Hawaii street address (service of process address).
Principal business address.
Whether the LLC is member-managed or manager-managed.
Organizer(s) name(s) & address(es).

Filing Options

Online via Hawaii Business Express or via mail, email, fax.
Expedited service available for an additional fee.

Post-Filing Requirements

Operating Agreement: not required by state but strongly recommended for governance.
Registered agent must be maintained.
Must file annual report each year.

Hawaii LLC Taxation

Pass-Through Entity Taxation (Default)

By default, Hawaii LLCs are taxed as pass-through entities: profits or losses pass through to members, who report them on their individual income tax returns.

General Excise Tax

Hawaii imposes a General Excise Tax (GET) on nearly all business gross receipts; LLCs often must register and comply with GET depending on their operations.

Foreign LLC Registration Tax & Fees

Foreign LLCs (formed out of state) must pay the same registration/filing fees as domestic LLCs and maintain registered agent requirements.

No State Franchise Tax or Minimum LLC-Level Income Tax

Hawaii does not impose a separate state “franchise tax” on LLCs; all tax liabilities are via GET, state income tax for individuals, and other relevant state business taxes.

Hawaii LLC Annual Filing (Annual Report / Statement of Information)

What to File

The Annual Report must include: LLC name; registered agent’s name and address; principal office address; names and addresses of members or managers; and any changes in management or address.

Filing Deadlines

The report is due annually on the last day of the quarter in which the LLC was formed.

Penalties & Consequences

Failure to file the annual report may result in late fees, and if not remedied, potential administrative termination or loss of good standing under Hawaii law.

Expanding Your Hawaii LLC

As your business grows, you may want to operate beyond Hawaii. This requires registering as a foreign LLC in each state where you do business and ensuring compliance with local laws, taxes, and licenses.

Registering a Foreign LLC in Hawaii

If your LLC was formed elsewhere but will do business in Hawaii, you must file a Certificate of Authority for Foreign Limited Liability Company with the Hawaii DCCA, appoint a Hawaii registered agent, and pay the registration fee.

Doing Business in Other States

To do business outside Hawaii, foreign-qualify in those states, maintain annual reports/compliance both in Hawaii and in those states, and ensure all tax, licensing, and reporting obligations are met in each jurisdiction.