Home How Much Does It Cost to Start an LLC? LLC Cost In Hawaii - How Much To Pay In Fees & Taxes in HI

LLC Cost In Hawaii - How Much To Pay In Fees & Taxes in HI

15 Min Read

0 Reviews

Last updated February 17, 2023

Written by Dmytro Kondratiev

Editor, lawyer

Disclosure: We earn a commission from some partner links. Commissions do not affect our editors' opinions or evaluations.

If you seek to become a part of the Hawaiian business environment and plan to start an LLC for that purpose, you’ve already made the right decision.

Knowing how to start an LLC in Hawaii, you want to know how much it will cost you. And you’ve come to the right place. In our guide, you’ll find a complete list of Hawaii LLC costs explained in every detail.

How Much Is an LLC in Hawaii?

Unlike sole proprietorships and partnerships, LLCs need statutory registration to be formed and brought to life at a legal level. As such, entity registration is not free and will throw at you state fees at the very least.

In practice, though, there will be other costs you should be aware of to be able to calculate your business formation and maintenance expenses. All in all, Hawaii LLC fees fall into two major categories:

Mandatory costs including statutory fees nearly all LLCs are exposed to depending on the type of business. Those are not numerous and often cover regular payments;
Optional costs embracing a range of fees related to added services. Most of these costs are one-time charges.

Something else that can increase your final grand total is the company’s formation assistance. If you decide to hire an attorney or legal advisor, get ready to pay hourly rates, which are often quite high.

A more affordable alternative if you still need somebody to register the entity for you is a specialized LLC service. At a fraction of the attorney costs, you’ll have the job done diligently and professionally.

Standard LLC Costs in Hawaii

LLCs are state-specific entities and so are the related Hawaii LLC costs. Each state has a few most common charges limited liability companies should pay to get registered and stay legitimate afterward.

Below, we’ll review standard LLC fees in Hawaii to help you plan your formation and maintenance budget more efficiently.

Hawaii LLC Filing Fee: $50

As with other US states, an LLC in Hawaii is established via state registration of the Articles of Organization. It’s a major formation document of your future entity that legalizes its status as an independent legal person and enforces its powers as such.

A statute is to be submitted to the Business Registration of the Department of Commerce and Consumer Affairs. You can file in one of three ways:

Online;
By fax;
By mail.

A Hawaii filing fee is $50 for all registration methods plus a $1 fee payable for the State Archives storage. Normal filing time is from 3 to 5 business days. Yet, you can get your company registered in only 1 day by paying $25 for expedited processing.

Registered Agent in Hawaii: $0 to $150

A registered agent is a must-have aspect for an LLC. So, you should appoint an agent before filing your docs, otherwise, your application will be rejected and your future compliance status will be at stake too.

Luckily, agent rules are not limiting and you have a few options to choose from to match your needs and pocket:

In Hawaii, you can serve as your own agent if you have a registered street address in the state. It might be a choice if you are on a stringent budget and every cent counts;
You can ask some of our friends, colleagues, family members, or other acquaintances to be an agent for your LLC for a symbolic fee or even free of charge;
You can agree with your lawyer, accountant, business advisor, or tax consultant to handle this role. Having an expert background, they are good enough for that;
There is an option of hiring a specialized agent service and letting dedicated professionals do the job for you.

An agent service will help you keep up with important filing dates and stay compliant with the state. Meanwhile, it won’t cost you an arm and a leg, with an average annual rate of around $100 -$150. Besides, many services offer 15% -25% volume discounts.

Annual LLC Fee Hawaii: Annual Report Cost: $12.50

To stay legitimate and be in good standing with the state, you’ll have to file an annual report for your Hawaii LLC. Basic by nature, this document is a crucial tool for verifying your business’s active legal status and compliance.

An LLC annual filing fee in Hawaii is quite low at a rate of $12.50 if you submit it online via the Hawaii Business Express portal. Mailed reports are charged at $15.

The reporting due date is the last day of the quarter in which your company is formed. Failing to file in time, you’ll incur a $10 penalty. Though the penalty is not high, delayed or failed filings might cause more serious consequences such as the company's dissolution.

Foreign LLC Cost in Hawaii: $50

Foreign qualification is a legal Hawaiian umbrella for your existing LLC which was formed in another US state. Foreign LLC registration is necessary to make your operating entity eligible and operable in Hawaii too.

To foreign qualify, you need to file Form FLLC-1 which is a Certificate of Authority for Foreign LLC with the Department of Commerce and Consumer Affairs. A filing fee is the same as for a domestic LLC registration. It’s $50.

Licensing Costs in Hawaii: $20 plus any local fees

Licensing is a sensitive issue for all businesses since most states, counties, and municipalities do require some sort of license or permit to operate in the jurisdiction. Hawaii is not an exception.

The state has no general license requirement for businesses, unlike some other US states. Yet, to transact activities on the islands, all businesses should get a General Excise Tax License. The license registration fee is $20.

Above that, depending on the type of business and activity you run, you may need a few other licenses issued locally in cities and counties. Their fees vary by territory. Contact a Business Action Center to learn more about the types of permissive documents you need.

Hawaii Taxes

Similar to licensing requirements, tax requirements in Hawaii might vary by locality. That said, there are still common taxes applied to LLCs in the state:

LLCs incomes are taxed under the personal tax returns of the members and individual income tax rates range from 1.4% to 8.25% subject to a total taxable income;
LLCs taxed as C-Corps are exposed to paying a corporate income tax at a rate falling between 4.4% to 6.4% depending on the business earnings;
With no sales tax in place, Hawaii has a general excise tax which is only 0.5% for wholesale and production activities and 4% for the rest;
Members of LLCs will have to pay a 15.3% federal self-employment tax;
Hawaii LLCs that hire employees should pay a payroll withholding from the workers’ wages at a standard rate of 7.65%.

Other LLC Costs in Hawaii

In addition to the above-mentioned expenses most Hawaii LLCs will have to settle, there are a few other costs you should be aware of. They will occur only under certain circumstances and are one-time payments.

Hawaii Name Reservation Fee: $10

To put a desired business name on hold in Hawaii until you are ready to file will cost $10. The reservation period is 120 days.

You should apply via the Department of Commerce and Consumer Affairs by submitting a Name Reservation Form.

Registering a DBA in Hawaii: $50

Strengthen your business marketing positions;
Make your company more recognizable;
Enhance your LLC’s growth and expansion opportunities;
Set up several brands under the shelter of a single Hawaii LLC

it’s enough to register a fictitious or DBA (doing business as) name for your company that is different from its registered or legal name.

You can file as many DBAs as you need at $50 per name version. Just submit an online application for DBA registration with the Department of Commerce and Consumer Affairs.

Hawaii Certificate of Good Standing Fee: $5

To prove your LLC’s compliance status when opening a bank account, setting up a factoring program, or seeking a business loan, you need to get a Certificate of Good Standing from the state.

Order it from the Department of Commerce and Consumer Affairs at $5 to get the document in 3 to 5 business days. Or pay $10 to get it in 15 minutes if filed before 4 p.m.

Certified Document Copies in Hawaii: $10

If you need a certified copy of your document for some purpose (normally required when signing long-term contracts and agreements), you can get it from the state office.

The price per single copy is $10 plus 0.25$ per document page.

Hawaii Articles of Amendment: $25

Once your LLC is registered with the state, any further changes in a company's basic info can be done only via filing amendments.

To change your LLCs name, resign a registered agent and appoint a new one, or enter a new legal address, you should register the Articles of Amendment with the Department of Commerce and Consumer Affairs and pay a $25 fee.

Hawaii Articles of Reinstatement: $25

If your Hawaii LLC has undergone the procedure of administrative dissolution, you can file for its reinstatement in a two-year period after such dissolution.

You should file the Articles of Reinstatement with the state department and pay a $25 fee. To bring back your company’s legal status, your application should also contain:

Non-filed or overdue reports;
All appropriate fees and penalties or fines verification;
A statement from tax authorities that all your tax liabilities have been duly settled.

Hawaii Articles of Termination: $25

Should you decide to quit doing business in Hawaii for some reason and close your LLC, you need to register the company termination to legalize your intention.

The Articles of Termination are to be filed with the state department and a $25 filing fee is to be paid.

FAQ

Will a Hawaii LLC justify its cost?

An LLC structure will eventually pay off its cost with a number of advantages such as limited personal liability, strong individual asset protection, flexible business taxes, and great potential for business growth. In other words, it perfectly matches a modern business framework.

How soon will I get my Hawaii LLC registered?

The standard processing time for LLC formation applications in Hawaii is from 3 to 5 business days. Yet, by paying $25 for expedited filing you can get your entity registered in about 15 minutes if you file before 4 p.m. or the very next day if you file after 4 p.m.

Does Hawaii have a general business license requirement for LLCs?

The state has no such requirement in place. Yet, what you do have to get is a General Excise Tax license, which is a must for Hawaii LLCs.

Is a Hawaii LLC exposed to income tax?

Taxed as a disregarded entity by default, your Hawaii LLC won’t have to pay a state income tax. Your LLC’s profits will be taxed on the members’ tax returns under their personal tax rates.

Is it necessary to renew a Hawaii LLC annually?

To keep your Hawaii LLC compliant and active, you will have to submit an annual report to the state. It’s meant to regularly renew your company’s information in state registries and maintain its legitimacy.

What is the cheapest way to get a Hawaii LLC?

While you can’t skip compulsory state fees, you can save some funds on the attorney or some added services if you accurately plan all processes and handle them on your own. This is a way to a cheap Hawaii LLC.

Yet, some added costs might save you formation hassles and speed up the process. Thus, by hiring an LLC service, you can leave LLC formation to professionals and focus on other organizational issues.

Is a Hawaii LLC open to tax refunds?

Normally, it’s not. However, by selecting a C-Corp status for your established entity under Form 8832, you will also make your company open to certain tax rebates.

Can I pay myself a salary from my Hawaii LLC?

By default, you will receive a part of the LLC’s profit via so-called income draws. This is what you can consider as your salary after paying taxes on it.

Meanwhile, LLCs taxed as corporations are entitled to hire their owners as regular employees and pay wages to them.

Are my cell phone expenses deductible from my Hawaii LLC?

Yes, they are, to the extent that you use your phone for business and subject to such use being over 50% of total costs.

Can I refer Internet expenses to my Hawaiii LLC if I work from home?

Yes, you can if you use your home Internet for work most of the time, with home use taking a minor part in overall costs.

Can I deduct my car costs from my Hawaii LLC?

Using a personal car for business is a normal practice among entrepreneurs. Vehicle costs are deductible pro rata to business use. You can even write off entire expenses if you use your personal car for business all the time.

Are fuel costs deductible from my Hawaii LLC?

You can save fuel receipts and compensate them from LLC subject to proving that you use your car for business by accounting for mileage driven for work purposes. An easier way is to simply deduct fuel expenses as a part of general car costs.