One of the initial steps in launching a business in Hawaii is submitting articles of incorporation to the government. Your limited liability corporation (LLC) is created formally with the help of this paperwork, which also registers it with the Hawaii Department of Commerce and Consumer Affairs.
First, decide on a name for your LLC. The name of your LLC must adhere to Hawaii’s naming regulations before you can submit your articles of establishment. Your company name must contain the words “Limited Liability Company” or a variation of that phrase, such as “LLC,” and it cannot be too close to the name of another Hawaii-based company. With the Hawaii Business Express Name Availability Search, you may determine whether your selected name is available.
2. Select an agency for registration. A registered agent, who consents to accept legal documents on behalf of your firm, is required for your LLC in Hawaii. Your registered agent must be accessible during regular business hours and have a physical address in Hawaii (not a P.O. box). 3. Store your articles of incorporation. You must submit articles of organization to the Hawaii Department of Commerce and Consumer Affairs Business Registration Division in order to formally form your LLC. A paper form can be mailed in or you can file online using Hawaii Business Express. For online submissions, the filing fee is $50; for hardcopy filings, it is $100.
4. Create an operational contract. An operating agreement for your LLC is an excellent idea even though it is not required by Hawaii law. This document describes the management organization, ownership stakes, and allocation of earnings and losses for your company. An operating agreement can help you prevent disputes and guarantee the efficient running of your company. Which Is Better, an LLC or a S Corp? A lot of small business owners are undecided about whether to set up an LLC or a S corporation. The answer is based on the demands and objectives of your particular organization. Limited liability protection is offered by both LLCs and S companies, although LLCs require less formalities and are often simpler to run. S corporations provide tax benefits but necessitate additional paperwork and compliance. To decide which choice is best for your company, it’s crucial to speak with an accountant or business lawyer.
Instructions for Forming an LLC You must comply with the procedures stated above for submitting articles of organization in Hawaii in order to create an LLC. An LLC has a distinct legal structure than a corporation, which is what is commonly meant when the word “incorporation” is used. In Hawaii, however, the procedures for forming an LLC and a corporation are comparable.
How Is Hawaii Taxed on LLCs? LLCs are treated as pass-through entities for tax purposes in Hawaii, which means that income and losses are transferred to the owners’ individual tax returns. In Hawaii, LLCs do not pay state income taxes, although they could be charged other taxes like sales tax or excise tax.
Does Hawaii require a business license for sole proprietors? Yes, if a lone owner does business in Hawaii, they must obtain a General Excise Tax (GET) license. No matter your company’s legal structure, you must obtain a license in order to operate because the GET is a tax on your business’s gross revenue. Depending on the type of business they run, sole owners could additionally require additional licenses or permits.
You must apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) in order to obtain a business tax ID in Hawaii. EIN applications can be submitted online, by mail, fax, or phone. If you apply online, the procedure is free, and you can acquire your EIN right away. You can submit your business taxes to the Hawaii Department of Taxation using your EIN after you have one.
Articles of Organization must be submitted to the Hawaii Department of Commerce and Consumer Affairs Business Registration Division in order to register your business name there. Providing information such your business name, purpose, registered agent, and other specifics about your enterprise is required. You can do this online or by mail. A Certificate of Organization, which formally establishes your company in Hawaii, will be given to you once your application has been granted.