Select a Name for Your LLC in Step 1 To create an LLC in Hawaii, you must first decide on a name for your business. The name must be original and unclaimed by another Hawaii-based company. The Hawaii Department of Commerce and Consumer Affairs (DCCA) company name database can be searched to see if your desired name is available.
Step 2: Submit Articles of Incorporation You must submit Articles of Organization to the DCCA Business Registration Division in order to formally establish your LLC in Hawaii. The name of your business, the contact information for your registered agent, and the names and addresses of the people who formed your LLC must all be listed in the articles.
Obtain a Hawaii Tax ID Number in Step 3 The Department of Taxation will need to issue your LLC a Hawaii Tax ID number if it employs people or is subject to corporate tax. Employer Identification Number (EIN) is another name for this number, which is used to identify your company for tax purposes.
Create an LLC Operating Agreement as the fourth step. Although it is not required under Hawaii law, creating an LLC operating agreement is highly advised. A legal document known as an operating agreement spells out your LLC’s ownership structure, management principles, and accounting practices. To avoid disagreements and make sure that everyone is on the same page, it is crucial to have an operational agreement in place. In Hawaii, does Etsy require a business license? In order to sell on Etsy, you must obtain a General Excise Tax (GET) license from the Hawaii Department of Taxation if your LLC conducts business in Hawaii. You are able to use this license to gather and send Hawaii’s GET tax on purchases made there.
Can I reserve a company name without using it?
You can indeed register a business name even if you never use it. The DCCA, however, has the right to cancel your registration if you fail to use the name for an extended period of time. Furthermore, even if you registered the name first, if someone else starts using it, they might have a claim to it. Do independent contractors in Hawaii require a business license?
The kind of job the independent contractor is doing will determine this. In Hawaii, a license is necessary for some occupations, including contractors and real estate brokers. In order to find out whether a license is required for your particular occupation, it is best to contact the relevant licensing body. What are the advantages of an LLC versus a single proprietorship? The protection of one’s personal assets is one of an LLC’s key advantages. With an LLC, your personal assets are kept apart from those of your business, so if your company is sued or gets into debt, it won’t put your personal assets at risk. In terms of ownership and management structure, LLCs also provide more freedom. Contrarily, sole proprietorships are simpler to set up and need less paperwork, but they do not provide the same amount of liability protection.
In Hawaii, the initial filing charge for an LLC is $50, and the annual filing fee is $15. However, there is an extra $25 charge if you decide to speed up the procedure. There will also be a cost for the registered agent’s services if you use one.
Choosing a business name, choosing a registered agent, filing articles of organization with the State of Hawaii, obtaining necessary permits and licenses, and drafting an operating agreement are all steps in the process of forming a Limited Liability Company (LLC) in Hawaii to launch your own company. It is also advised that you consult with a lawyer and a financial advisor before beginning your company.