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The objective of the annual report is threefold. The annual report keeps the Government informed about all updates, communicates any modifications or changes, & keeps the LLC members informed about the necessary taxes and costs. This article has all the information about the Hawaii LLC annual report filing in Hawaii.
An annual report can be called an address book, as it features all the relevant addresses of the company & the members. This annual report is a comprehensive record of the company’s activities for the entire year. It is also referred to as the Annual Franchise Tax Report, as it facilitates the filing of the franchise tax.
Content of the Annual Report
Typically, the annual report filed by a Hawaii LLC (or any other business entity for that matter) will include all the information related to its business & members. The standard contents of the annual report or the annual franchise tax report are
- Office Address of the LLC
- Names & Addresses of the Members & managers.
- Identification Documents
- Social Security numbers of the key members of the LLC
- The objective of the business of the LLC
- List of all the signatories of the LLC
- Information of the registered agent, if any
LLC Tax Update: Before you file your LLC annual report in Hawaii, make sure to pay all the tax dues for the year.
Hawaii LLC Annual Report
An Annual report is essential for all business types. It authenticates that the information provided to the Secretary of State is accurate & updated. The information provided in the annual report helps state officials ensure that all companies pay taxes. The Hawaii Annual Report is filed with the Hawaii Department of Commerce and Consumer Affairs. Note that the LLC Annual Report is not the same as the Certificate of Good Standing in Hawaii.
Does the State of Hawaii Require an Annual Report Filing?
In Hawaii, it is essential for all Business Entities to file an Annual Report. This includes all the legal entities, such as C Corporations, Limited Partnerships, and Limited Liability Companies, that are bound to file the Annual Report.
How to File a Hawaii LLC Annual Report
The Hawaii LLC Annual Report can be filed online, in person, or by mail. The due date of the Annual Report is calculated on the basis of the quarter in which the Business was registered. In Hawaii, annual reports can be filed with the Secretary of State online by following a few simple steps.
- Step 1: Visit Hawaii’s Government Website & click on the tab titled Business.
- Step 2: Once you click on the Business Annual Report Filing tab from the list of tabs before you.
- Step 3: Upon clicking on the Business Annual Report Filing tab, you will see the following page. Enter your LLC business name in the search box & search.
- Step 4: After carefully reading the names of every business listed in the search results, choose your business.
- Step 5: Once you have selected your business on Hawaii’s Official State Website, click on the Begin your Annual Report button & submit the relevant information with the filing fee of $12.50.
Filing Hawaii LLC Annual Report By Mail
To file the LLC Annual report in Hawaii, you can follow the steps as mentioned below:
- Go to the Hawaii Registration Forms, Fees & Information page.
- Scroll down & choose ‘Domestic or Foreign LLC’ in the type of corporations tab.
- Click on the Complete listing of all fillable PDF forms
- In the list of forms, choose & download the Domestic Limited Liability Company Annual Report (Form C5)
- Download the form on your computer.
- Fill the form with correct information.
- Send the printed copies of the forms and relevant documents with the $15 fees to the address: Department of Commerce and Consumer Affairs, Business Registration Division, P.O. Box 40, Honolulu, HI 96810
Hawaii LLC Annual Report (Domestic & Foreign)
| State Office: | Department of Commerce and Consumer Affairs, Business Registration Division, P.O. Box 40, Honolulu, HI 96810 Links to Website, Form |
| Due Date: | The due date of the Annual Report is calculated on the basis of the quarter in which the Business was registered. The Department of Commerce and Consumer Affairs notifies the businesses when the annual report filing is due. |
| Filing Fee: | The Online filing fee for the Hawaii LLC’s Annual Report is $12.50 & the fee to file in person or by mail is $15. |
| Penalty: | An Annual Report is one of the important documents filed by an LLC. The Hawaii Government charges a $10 late fee for the late filing of an annual report. If the LLC is unable to file the annual report for two or more consecutive years, the Department of Commerce and Consumer Affairs has the right to dissolve the LLC. |
| Filing Method: | An LLC can file the Annual Report Online, in person, or by mail. |
| Forms: | Domestic Limited Liability Company Annual Report (Form C5) |
| Important Information: | Once a Domestic or Foreign Hawaii Limited Liability Company submits the Annual Report along with the prescribed fees to the Hawaii Department of Commerce and Consumer Affairs, the filing is said to be complete. |
Annual Report Deadline
As mentioned above, filing the Annual Report is a mandatory requirement for all LLCs. An LLC operating in Hawaii has to file the Annual Report with the Hawaii Department of Commerce and Consumer Affairs. The due date of the Annual Report is calculated on the basis of the quarter in which the Business was registered.
Penalties for Non-filing or late filing
An Annual Report is one of the important documents filed by an LLC. The Hawaii Government charges a $10 late fee for the late filing of an annual report. If the LLC is unable to file the annual report for two or more consecutive years, the Department of Commerce and Consumer Affairs has the right to dissolve the LLC.
Tax Structure in Hawaii LLC
For an LLC in Hawaii, the tax structure is very simple and flexible. First of all, every LLC has the advantage of a pass-through taxation. On the other hand, an LLC can choose the desired tax structure at the time of formation. There are two ways an LLC can be taxed,
Default Status:
When filing your LLC in Hawaii, entrepreneurs have the opportunity to select a desirable tax structure. If they do not choose a specific structure, the LLC will be taxed under the ‘Default Status’. That means the tax will be levied based on the number of LLC members.
For a single-member LLC, it is considered a ‘disregarded entity’. This means that a single-member LLC does not have to file a federal income tax return, but the individual (or the LLC member) must file it personally. In the case of a single-member LLC, it is treated as a sole proprietorship.
In the case of a multi-member LLC, it is considered a partnership for tax purposes. Hence, the default status for a multi-member LLC is a partnership firm. LLCs are required to file a separate ‘partnership form’ with the IRS.
LLCs with Spouses: There are specific states (like California) where starting an LLC with a spouse is considered a single-member LLC instead of a partnership or multi-member LLC. In such cases, both husband and wife will be liable to pay taxes
Elective Status:
For an elective status, the LLC can choose the tax structure while filing the formation documents. LLCs in Hawaii should file a separate tax form if they do not wish to be taxed by default. Many LLCs choose to be taxed as a corporation to enjoy corporate benefits, especially if the LLC is large.
LLCs can choose between S-Corp and C-Corp tax status when filing the formation document in Hawaii. In that case, the concerned LLC needs to submit a separate form for each type it chooses. For the S-Corp type, Form 2553 must be submitted; for the C-Corp type, Form 8832 must be submitted.
In Hawaii, there may be local taxes (inquire with the local government body for details) that LLCs must pay to be updated. Make sure to pay and update your tax dues before you file your annual report in Hawaii.
Annual Report vs Certificate of Good Standing in Hawaii
The Certificate of Good Standing is a legal document that certifies that an LLC in Hawaii is in good standing and compliant with all applicable laws. That includes an updated annual report as well. While Annual Reports show if your company is up to date.
They are both similar documents (although not identical) and serve as proof of the company’s good standing. The Annual Report is a domestic document, whereas the Certificate of Good Standing in Hawaii is a mandatory document if the LLC is going beyond the home state to a foreign state. There are several ways to obtain a Certificate of Good Standing in the state of Hawaii.
To purchase a Certificate of Good Standing in Hawaii, Business owners can visit the Business Search page -> Buy Certificate of Good Standing to find and purchase the Good Standing Certificate for their business.
A filing fee of $5 (regular processing) or $10 (for expedited filing) must be paid to the SOS to obtain the Certificate of Good Standing. The amount might be more depending on the number of copies you request. If you request additional copies of documents, you may incur an additional fee.
Request Certificate of Good Standing:
- Online application: Buy Certificate of Good Standing
- Offline application: Not available
- Fees: $5 (regular processing) or $10 (for expedited filing)
Why Do LLCs Have to File the Annual Report?
Some states are not required to file this yearly report, commonly referred to as the Annual Report. However, there are several reasons why states require an LLC Annual Report. Here are some reasons,
To Maintain the Accuracy of the Information
An annual report filed by the LLC has all the updated information about its official addresses & the names or addresses of all its officials. This updated information allows the State authorities to track down any LLC when communicating.
To Provide the Correct Correspondence
Many times, any creditor or other entity willing to transact with the LLC requires the correct correspondence address. If this information (which can only be modified with the help of an annual report) is not updated every year, such entities will not be able to communicate with them.
To Notify the Government About All the Significant Changes
If you have changed your main business address or had new business appointments of managers or members, the annual public information report notifies the State Government Entities about it. So, the next time someone questions a newer reform that you have introduced in your LLC, you will be saved because you had submitted the information to the Government.
To Provide an Activity Log of an LLC
The Annual Report is like an activity log of the LLC. It brings on record all the transactions, new associations, appointments, etc. & keeps those records intact for all future references.
To Help You With the One-time Filing of Taxes
The annual report is an excellent means to keep you on your toes in case of your dues payment. Every LLC must pay taxes through the annual report filing. By filing the report on time, the LLC can manage the exemptions & can avoid penalties imposed by the Government.
To Enable the State to Track the Payments
The government authorities use all the information filed through the annual report, for tracking the payment of State Taxes.
Seek the Help of a Registered Agent
Every State will have a different rule for filing the Annual Report. Usually, it is submitted annually, but in some states, it is submitted every other year. Some states require the filing of the report only once in ten years.
Not only the timing, but also the mode of filing, proper addresses, exemptions, legality, annual report compliance, etc., must be taken care of when paying taxes or filing reports with state authorities. In many such scenarios, it is advised that an LLC appoints a Registered Agent to manage all this. Check out the best LLC service that offers all the services at an affordable price. An experienced agent is required for:
- Streamlining the mandatory processes & filing.
- Sending or receiving any documents.
- Reminding you about important dates of filing or payment of taxes.
- Simplifying the filing procedures.
- Avoid any penalties.
- Flexibility in working.
- Maintaining Privacy (as it keeps your personal records off the public record)
You can read more about a Hawaii Registered Agent here.
FAQs
Yes, an annual report is essential for every business entity in most states. Some states also require filing biennial or decennial reports.
A Yearly Business Report or the annual report typically incorporates the address of the business, names & addresses of the members, a list of all the signatories, SSN of the members, & details of the registered agent.
A Registered Agent is well-aware of all the filing requirements, annual report filing fee, & overall Annual Report compliance. The knowledge & proficiency of the registered agent allow the smooth filing of reports & other fees.
The most important aspect of filing an Annual Report is maintaining accurate record-keeping. Ensure that you document every transaction thoroughly.
Yes, the fees may vary depending on the type of entity or the type of legal entity you are representing.
In Conclusion
In conclusion, we can see that the annual report, also known as the Franchise Tax Public Information Report, is significantly easier to file. However, it is mandatory to file the report on time to avoid any penalties. If you are running an LLC in the state of Hawaii, you have to comply with the filing of certain important documents, including the annual report or the Franchise Tax Public Information Report, as it is named in the state of Hawaii.
It is also important to note that once this Public Information Report is filed with the Comptroller of Public Accounts, there is no need for additional filing with the Secretary of State. Additionally, please note that an annual report is not the same as a Certificate of Good Standing in Hawaii. They might look similar, as many parts of the certificate are the same as those in the annual report; however, it is a completely different document and should be compliant with the filing requirements for the annual report in Hawaii.