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.
On this page, you’ll learn about the following:
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.
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:
State | Filing Fee | Annual Fee/Biennial Fee | Sales 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
- Hawaii Name Reservation: $25 for online fillings or by mail
- Doing Business As (DBA): $25 for online filling or by mail
- Certified Document Copies: $10 per document.
- Certification of Good Standing: $10
- Business Domain Name and Website: depend on your preference, but domain name could be as low as $2.99/yr at NameCheap, and web hosting is at least $30/mo at Kinsta.
- Online workspace: at least $4.20/mo for GSuite.
- Business Insurance: would vary depending on insurance type–whether general liability insurance or professional liability insurance–and coverage.
- Dissolution of Hawaii LLC: $100
F.A.Qs
It is possible to form an LLC without professional help, but forms still have associated costs, regardless of where your LLC is formed.
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.
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.
One of the primary costs associated with maintaining an LLC in Hawaii is the annual report filing fee. Every year, LLCs are required to submit an annual report to the state in order to keep their business in good standing. This report typically includes information about the company’s members, managers, and registered agent. Failing to file this report on time can result in late fees and eventual dissolution of the LLC.
In addition to the annual report filing fee, business owners must also be prepared to pay state taxes. LLCs in Hawaii are subject to state income tax on their profits, which must be reported on the company’s tax return. Depending on the size and revenue of the business, these taxes can add up quickly and should be budgeted for accordingly.
Another ongoing cost for LLCs in Hawaii is the annual registration fee. While the initial registration fee to establish an LLC is a one-time expense, businesses must pay a renewal fee each year to keep their registration current. Falling behind on these payments can lead to penalties and potential loss of the LLC’s legal status.
Apart from state fees, LLCs may also incur additional costs for professional services. For example, some businesses choose to hire an attorney or accountant to help with annual filings, tax compliance, and other legal matters. While these services are not required, they can help ensure that the LLC remains in good standing and operates smoothly.
It’s important for business owners in Hawaii to carefully consider the ongoing costs of maintaining an LLC in order to avoid any surprises or financial setbacks. By budgeting for annual fees, taxes, and potential professional services, entrepreneurs can better plan for the financial responsibilities that come with running a business entity.
Overall, while the costs of maintaining an LLC in Hawaii may vary depending on the size and nature of the business, it’s crucial for business owners to be aware of these financial obligations. By staying proactive and budgeting accordingly, businesses can successfully navigate the financial aspects of operating an LLC in the state and ensure compliance with all legal requirements.
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.