LLC Cost in Hawaii – How Much to Pay for an LLC


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Perhaps you are hoping to form a Hawaii LLC. People assume how to start an LLC is difficult and costly. However, it’s generally not difficult, and the cost would vary across states. We have all the info you need to know about the cost of forming an LLC, particularly the LLC cost in Hawaii.

Hawaii LLC Cost of Filing

Here are the costs involved in forming an LLC in Hawaii.

Cost of Filing Formation Certificates

The Hawaii Certificate of Formation is responsible for the majority of the cost, which could also vary depending on whether you’re forming a domestic LLC or a foreign LLC. Still, you can file both at the Hawaii Secretary of State.

Hawaii Domestic LLC

  • Online filing costs $50
  • Annual Report filing costs $12.50
  • Name Reservation fee costs $10
  • By mail: Fill out the Application form PDF, and submit it to the following address: Business Registration Division, 335 Merchant Street, P.O. Box 40, Honolulu, Hawaii 96810

Hawaii Foreign LLC

  • Online filing costs $50
  • Annual Report filing costs $12.50
  • Name Reservation fee costs $10
  • By mail: Fill out the Application form PDF, and submit it to the following address: Business Registration Division, 335 Merchant Street, P.O. Box 40, Honolulu, Hawaii 96810

Visit the Official Hawaii of State Hawaii Business Express website to learn more about business services and forms and fees.

Note that filing online is ideal, not only because you need to go to the Secretary of State office, but also it would be faster. You won’t have to wait in a queue in doing so.

Hawaii LLC Formation Service or Registered Agent Fee

You need a registered agent to form an LLC in Hawaii, hence, added costs for service fees. Here are three of the best LLC services on our list that will provide you with registered agents to ease your worries.

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Business Permits and Licenses

The business licenses depend on your business’s activity and location and are renewed yearly. As such, the cost will vary. Check the Hawaii Department of Revenue for regulatory boards or agencies requiring licensing.

Hawaii LLC Taxes to be Paid

The business LLCs in the State are subject to different State Tax filing obligations. Though the taxes may vary from county to county.

Hawaii State Income Tax

This is the State Tax levied on any income you pay to yourself. The tax rate varies between 1.4% to 8.25%, depending on the total amount of taxable income.

Hawaii Sales Tax

Hawaii does not have a sales tax. Instead, it has a General Excise Tax (GET) which is fixed differently for different sales activities, such as 0.15% for Insurance commission, 0.5% for wholesaling, manufacturing, producing, wholesaling, and 4% for all others.

Hawaii Federal Self-Employment Tax

Any profit that a Hawaii LLC Business members draw out from the business is liable to pay self-employment tax. The standard tax rate is 15.3%.

Hawaii LLC Employer Payroll Tax Withholding

If you hire employees in Hawaii, you must withhold payroll tax from their salaries. The standard rate of withholding is 7.65% of the taxable salary of the employees.

Cost Comparison Among States

Every state has different costs of filing for an LLC to their respective State Authorities. If you want to get a better understanding of the costs of opening an LLC in a different state in comparison to Hawaii, read the table below:

StateFiling FeeAnnual Fee/Biennial FeeSales Tax
Hawaii LLC$50$12.50 (Annual)Varying General Excise Tax
Alaska LLC$250$100 (Biennial)0%
Oregon LLC$100$100 (Annual)0%
California LLC$70$800 (Annual)7.25%
Washington LLC$200$60 (Annual)6.5%

Tourism is the largest contributing sector to Hawaii’s economy. Other major industries include service, transportation, retail trade, healthcare, and education.

Other Costs

F.A.Qs

Can I start an LLC for free?

It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.

Is an LLC expensive?

It is difficult to say whether forming an LLC is expensive. Nevertheless, the cost could be anywhere from $40 to $500. If you refuse to hire professionals, you’ll still have expenses like form fees to cover.

Does an LLC need a bank account?

The need to separate personal money from business funds, thus necessitating the creation of a business bank account for your LLC.

How Much Does It Cost to Maintain an LLC in Hawaii

To maintain an LLC in Hawaii you will need to pay an annual fee of $12.50 along with income tax at 1.4% to 8.25%, general excise tax at 9% and federal taxes.

First and foremost, when establishing an LLC in Hawaii, entrepreneurs must bear in mind the filing fees. These costs can vary depending on the specific requirements, but it is advisable to set aside a specific budget for this initial expense. While it may seem like an inconvenience at the outset, this fee indicates your commitment to legal compliance and ensures your LLC can operate under Hawaii’s legal framework.

Insurance coverage is another critical aspect requiring financial consideration. While not mandatory, obtaining liability insurance for your LLC is highly recommended. Insurance can protect your business and personal assets from legal claims, uncertainties, and unforeseen circumstances. The cost of such coverage will ultimately depend on your unique business requirements and the type of coverage chosen.

Once the LLC is up and running, ongoing expenses come into play. The licensing fee is an essential recurring cost. LLC members are required to renew their licenses periodically, and these fees can vary depending on several factors, such as the size of the business and industry.

Furthermore, maintaining a legally registered agent in Hawaii is compulsory for an LLC. Since Hawaiian law mandates that a responsible individual or entity accepts legal documents on behalf of the company, hiring a registered agent is necessary. While it introduces an additional expense, this service ensures that time-sensitive legal documents reach LLC owners efficiently, allowing them to comply safely with regulations.

Taxes constitute another significant expense for LLCs in Hawaii. Business owners need to be aware of state taxes applicable to their companies. While an LLC does not pay federal taxes directly, income generated by the business flows through to its members or owners. As Hawaii imposes both state income and general excise taxes, entrepreneurs must understand their tax obligations accurately. Professional guidance from an experienced tax professional can help mitigate risks and ensure compliance with relevant regulations while minimizing tax liability.

Lastly, annual reporting and compliance requirements deserve careful attention. While not typically overly burdensome, these obligations incur minimal expenses. Preparing and filing annual reports to the state of Hawaii, maintaining proper records, and fulfilling any other compliance duties are critical to avoid penalties or potential risk to the company’s standing.

In conclusion, forming and maintaining an LLC in Hawaii is an exciting venture that holds great promise for aspiring entrepreneurs. Nevertheless, one must understand the associated costs and obligations to make informed decisions. Forward-thinking business owners will invest time and resources into familiarizing themselves with Hawaii’s rules and regulations, recognizing the financial implications upfront, and planning accordingly. By doing so, they can pave the way towards a sturdy foundation for their LLC’s longevity and success in the island state’s vibrant business landscape.

In Conclusion

The cost of Hawaii is much lower compared to other forms of business. Apart from the state filing fees and annual taxes, you might bear the cost of the registered agent. Compare the price of professional LLC services and choose the most affordable one.


About Author & Editorial Staff

Steve Goldstein, founder of LLCBuddy, is a specialist in corporate formations, dedicated to guiding entrepreneurs and small business owners through the LLC process. LLCBuddy provides a wealth of streamlined resources such as guides, articles, and FAQs, making LLC establishment seamless. The diligent editorial staff makes sure content is accurate, up-to-date information on topics like state-specific requirements, registered agents, and compliance. Steve's enthusiasm for entrepreneurship makes LLCBuddy an essential and trustworthy resource for launching and running an LLC.

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