You might want to think about setting up a limited liability corporation (LLC) if you’re planning to launch a business in Hawaii. Because it offers its owners personal liability protection, flexible management, and tax advantages, an LLC is a well-liked kind of business entity. What you need to know about forming an LLC in Hawaii is provided below.
First, select a name for your LLC. To create an LLC in Hawaii, you must first decide on a name for your business. The name of your LLC must be original and not in use by another Hawaii-registered company. The Hawaii Department of Commerce and Consumer Affairs’ (DCCA) internet database allows you to look up names that are currently available. Additionally, your company name must contain the phrase “Limited Liability Company” or the abbreviation “LLC”. 2. Submit the articles of incorporation Articles of Organization must then be submitted to the Hawaii DCCA. This document contains information about your LLC, including its name, address, and the names of its members, and also registers it formally with the state. Articles of Organization can be submitted online or by mail. For submissions made on paper, there is a $50 filing charge and an additional $1/page printing fee.
3. Obtain Licenses and Permits To conduct business legally in Hawaii, you might need to get a number of permits and licenses, depending on the nature of your industry. For instance, the Department of Liquor Control will require that you apply for a liquor license if you intend to sell alcohol. By visiting the Hawaii Business Express website, you can learn what authorizations and licenses you require.
4. Create an Operating Agreement
Even though it’s not needed by law, creating an operating agreement for your LLC is a smart move. This agreement describes your company’s ownership and management, as well as how earnings and losses will be allocated. Future problems between members may also be avoided with its assistance.
How can you register under a DBA in Hawaii? You must submit a DBA (Doing Business As) form to the Hawaii DCCA if you intend to operate your business under a name that differs from the legal name of your LLC. By doing this, you can continue to utilize the legal name of your LLC while using a separate name for marketing and advertising activities. For a $25 cost, you can file a DBA online or by mail.
What is an LLC, exactly? Because it combines the tax advantages and flexible management of a partnership with the personal liability protection of a corporation, an LLC is regarded as a hybrid company entity. Owners of LLCs, or members, are not held personally accountable for the debts or legal troubles of the business, and the company’s revenues and losses are passed through to the members’ individual tax returns.
Can I register a business name and not use it after that? Yes, it is possible to register a company name in Hawaii without using it. To keep the name on the state’s records, you must continue to pay the annual registration cost. In order to have the name deleted from the state’s records, you can file a statement of abandonment with the Hawaii DCCA if you decide not to use it.
How long does it take to form an LLC in Hawaii with regard to this? Depending on the filing type, Hawaii LLC formation processing times change. While traditional filings can take up to two weeks to process, online submissions are normally processed within 24 hours. The length of time it takes to get all essential permits and licenses, however, also affects how long it takes to form an LLC in Hawaii.