How Much Does an LLC Cost in Hawaii
It costs at least $51 to form an LLC in Hawaii. But these additional expenses could increase the total to over $3,000.
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Here are the following fees to consider:
- Articles of Organization: $50
- Certificate of Authority: $50
- Annual Report: $12.50 to $15
- Business Permits and Licenses: $20+
- Business Taxes: 1.4%-11% of taxable income
- Registered Agent: $0, or $100-$300/yr
- Operating Agreement: $0, or up to $500+
- Employer Identification Number: $0, or $50 to $99
- BOI Report: $0, or $25 to $149
- Other Optional Fees: Up to $3,000+
Launching your limited liability company in Hawaii might seem like a dream. However, you must be prepared for the financial realities. After all, the Aloha state is expensive to do business in.
This guide helps you prepare for the costs so you can budget effectively for your island business.
Limited time: Get 10% off LLC plans
- Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
- Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.
Articles of Organization
One-Time Fee: $50 + $1 State Archives Fee[1]
To form an LLC in Hawaii, you must file the Articles of Organization with the Department of Commerce and Consumer Affairs. Once the documents are approved, your LLC will be recognized as a separate legal entity.
A Hawaii LLC's Articles of Organization contains the following information, among other details:[2]
- Limited liability company name
- Registered agent name and address
- Business mailing address
- Name and address of each organizer
You can file the Articles of Organization online, by mail, or in person. Online filings are typically processed quickly, and even faster when you pay expedited services.
Hawaii charges an additional $1 state archives preservation fee on top of the state filing fee for some permanent documents.[3] This includes the Articles of Organization and other permanent documents you file for your LLC.
Application for Certificate of Authority
One-Time Fee: $50 + $1 State Archives Fee[4]
If you already have an LLC in another state and want to expand your business to Hawaii, register it as a foreign LLC.
To create a foreign LLC in Hawaii, file an Application for a Certificate of Authority with the Department of Commerce and Consumer Affairs. Don't forget to attach a Certificate of Good Standing from your domestic state
.
No, it's not possible to form an LLC in Hawaii for free. You need at least $50 to file either a Articles of Organization for a domestic LLC or a Certificate of Authority for a foreign LLC.
Annual Report
Annual Fee: $12.50 (online) | $15 (paper)[5]
All LLCs in Hawaii must file annual reports with the Department of Commerce and Consumer Affairs. It lets the government, banks, and anyone who can access public records know that your business is still active.
In Hawaii, an annual report's due date depends on when you formed the LLC:[5]
| LLC Formation Date | Annual Report Due Date |
|---|---|
| January 1 to March 31 | on or before March 31 |
| April 1 to June 30 | on or before June 30 |
| July 1 to September 30 | on or before September 30 |
| October 1 to December 31 | on or before December 31 |
If you file the annual report online, you can receive free reminders the following year. Alternatively, you can sign up for email reminders on Hawaii Business Express for $2.50 yearly.
Hawaii charges a penalty not exceeding $100 for every thirty days that you don't file an annual report after the due date.[5] Your LLC may also be tagged as delinquent, a business status that is publicly available to potential investors and anyone else who looks up your business.
Business Permits and Licenses
Cost: $20 General Excise Tax License[6]
Anyone who receives income from doing business in Hawaii must have a General Excise Tax license (GET). This license remains active as long as your business is active, so it doesn't need to be renewed.
Additionally, Hawaii allows local jurisdictions and specific industries to have their own business licensing requirements.
The number of permits and licenses your LLC needs depends on its business purpose. Some businesses may be regulated by various governmental offices simultaneously and could renew yearly.
Business Taxes
Cost: 1.4% to 11% of taxable income[7]
LLCs are generally considered "pass-through" entities for tax purposes. This means the LLC's profits and losses pass through to the owners and are reported on individual tax returns.
Hawaii's current personal income tax rate is up to 11% of taxable income. On top of that, you must also pay federal income taxes.
2024 Federal Income Tax Rates:[8]
| Tax Rate | Taxable Income |
|---|---|
| 10% | $0 to $11,600 |
| 12% | $11,601 to $47,150 |
| 22% | $47,151 to $100,525 |
| 24% | $100,526 to $191,950 |
| 32% | $191,951 to $243,725 |
| 35% | $243,726 to $609,350 |
| 37% | Over $609,350 |
Don't forget the 15.3% federal self-employment tax.[9]
The fees that you'll incur when forming an LLC can be claimed as tax deductions. You can write off the following expenses:
Optional Fees
While the fees below are generally optional, some are unavoidable depending on your business needs.
For example, obtaining a Certificate of Good Standing is often necessary when opening an LLC bank account.
| Hawaii LLC Optional Fees | Cost |
|---|---|
| Expedited Services | $10 to $75 |
| Registered Agent Services | Up to $300+ |
| Statement of Change | $25 |
| Operating Agreement | Up to $500+ |
| Employer Identification Number | $0 to $99 |
| BOI Report | $0 to $149 |
| LLC Name Reservation | $10 |
| Trade Name | $50 |
| Articles of Correction | $25 |
| Articles of Amendment | $25 |
| Certificate of Good Standing | $5 |
| Certified Copy of Documents | $10 + $0.25 per page |
| Website Domain | $10 to $20 |
| Business Insurance Premiums | Varies |
Expedited Services
Cost: $10 to $75[1]
The Department of Commerce and Consumer Affairs offers expedited services for an additional $25, including the Articles of Organization and Business Name Reservation.
Most documents can be expedited for an additional $25, with a few exceptions:[1]
- $10: Certificate of Good Standing and Certified Copies
- $20: Trade Name Registration
- $75:Articles of Merger or Conversion
Non-expedited filings are typically processed in three to five working days. Expedited filings can be done in just one day.[10]
Registered Agent Services
Annual Cost: $0, or $100-$300/yr
In Hawaii, you must have a registered agent to receive business and legal documents for your LLC. This includes government notices, tax forms, and annual reporting forms.
You can technically be your LLC's registered agent—as long as you're at least 18 and have a physical street address in Hawaii. You must also be available to receive documents during business hours.
However, your address will be public record. So many LLCs like to hire a registered agent service to keep their personal details private. These services usually charge $100-$300 per year to be your registered agent.
No, you don't need an attorney to form an LLC in Hawaii. You can form on your own or hire a formation service to help you.
Statement of Change
Cost: $25[1]
You can change your registered agent's details by filing a form with the Department of Commerce and Consumer Affairs. Changes include the registered agent's name and address.
Some registered agents will shoulder this bill if you switch to their services.
In Hawaii, the amended articles are used to change the business name, management structure, and other details. The statement of change form is focused solely on changes regarding the registered agent.
Operating Agreement
Cost: $0, or up to $500+
LLCs in Hawaii are not required to have an operating agreement. However, it's recommended because it defines important rules and regulations that all members must follow.
An LLC operating agreement contains the following:
- The roles and responsibilities of each member
- How new or departing members will be treated
- How business profits and losses will be divided
Ideally, you should already have a signed Operating Agreement before forming an LLC in Hawaii. But if your LLC is already formed, you can always draft it yourself after.
Alternatively, an LLC attorney might charge you a $500 flat fee for a standard operating agreement. If you have more complex details, the cost could be higher.
You can write your own with free online operating agreement templates. If you want a professional to create it for you, LLC services usually offer this as a part of their packages for much less than attorney costs.
Employer Identification Number
Cost: $0, or $50 to $99
Any LLC with more than one member or with employees must have an EIN, regardless of how it's taxed. This is a unique nine-digit number assigned by the Internal Revenue Service (IRS) to identify a business entity for tax-related purposes.
You can just apply for an EIN for free on the IRS website. But if you'd like an LLC service to process it for you, you can do so for a small fee. Here are some providers that do this and their pricing:
- Northwest Registered Agent: $50
- Bizee: $70
- ZenBusiness: $99
Single-member LLCs in Hawaii don't require an EIN, but it's almost essential in practice. For instance, you'll need one if you hire employees or want to open a business bank account.
Yes. Separating your LLC's finances from personal assets is a requirement of liability shielding. Use a separate bank account to accept payments and pay business expenses to prevent piercing the corporate veil .
Beneficial Ownership Information Report
One-Time Cost: $0, or up to $149
The Beneficial Ownership Information (BOI) is a one-time report that must be submitted to the Financial Crimes Enforcement Network (FinCEN) within 30 calendar days of your LLC's formation.[11]
It includes information about the LLC's beneficial owners, including name, birth date, and address.
FinCEN doesn't charge a fee to submit your BOI report. But you can pay an LLC service to process it for you and save yourself the hassle:
- Northwest Registered Agent: $25
- LegalZoom: $149
- ZenBusiness: $149
You're considered a beneficial owner if you own 25% or more of the ownership interests in your LLC. Or if you exercise substantial control over the LLC.
Name Reservation
Cost: $10[1]
If you already have a business name but aren't ready to form an LLC, you can reserve your desired name first. This will prevent others from using that name for 120 days.[12]
Remember to review Hawaii's naming regulations. For example, an LLC name must include LLC, Ltd., or similar.
Check online to see if your business name is available as a web domain. Even if you don't plan to make a business website today, you may want to buy the URL to prevent others from acquiring it.
Trade Name
Cost: $50[13]
A trade name (also known as "Doing Business As" or DBA) allows your LLC to operate under a name different from its legal name registered with the state. Some LLCs use a DBA for branding purposes, like using a name without "LLC" at the end.
Trade names in Hawaii must be renewed every five years for $50.[14] The state doesn't send reminders for renewals, so you must remember when your LLC's trade name expires.
Articles of Correction
Cost: $25[1]
After your Hawaii LLC application is approved, review all the details of the Articles of Organization carefully.
If there are errors, like a misspelled business name or incorrect address, correct them as soon as possible by filing the Articles of Correction.
Articles of Amendment
Cost: $25[1]
Your Hawaii LLC's Articles of Organization contains specific details about your business. Should these details change, you must file an amendment to the Department of Commerce and Consumer Affairs.
File an amendment if you:
- Change the LLC name
- Move to a new location
- Switch management structure
You must also file a statement of change with the $25 filing fee if you update your registered agent's details.
The Articles of Correction are for fixing mistakes in initial filings. Meanwhile, the Articles of Amendment update key details as the LLC evolves.
Certificate of Good Standing
Cost: $5[1]
A Certificate of Good Standing is an official document by the Department of Commerce and Consumer Affairs. It verifies that your LLC is updated with all state filings and has paid all its fees and taxes.
You might need a Certificate of Good Standing to:
- Open a bank account
- Apply for business loans
- Qualify for business insurance
- Conduct business as a foreign LLC
Contact the Department of Commerce and Consumer Affairs to ask why your LLC is in bad standing. The most common reasons include:
- Failure to file the annual report
- Failure to renew business permits and licenses
- Not having a registered agent in Hawaii
Certified Copies
Cost: $10 + $0.25 per page[1]
Certified copies of documents verify that your LLC is legitimate and that its details are accurate.
You might need these for circumstances like opening a business bank account or expanding your LLC in another state.
Additionally, some LLCs keep certified copies of their initial Articles of Organization and amendments (if any) for recordkeeping purposes.
Business Website Domain
Annual Fee: $10 to $20
A website domain and social media presence provide dedicated online spaces for your business. It's essential for marketing, customer engagement, and brand visibility in today's digital world.
Even if you aren't planning to build a business website now, you could still buy the domain name. This will prevent others from using your LLC's name as a web address.
Domain squatters often monitor newly registered LLC names. They purchase corresponding website domains and then resell them at significantly higher prices.
Business Insurance Premiums
Cost: Varies
Hawaii law requires nearly all employers to have workers' compensation insurance.[15] This supports employees who suffer work-related injuries or illnesses.
Hawaii doesn't have a state-run workers' compensation fund. So, you can shop from a private insurance carrier authorized to do business in Hawaii.
Additionally, consider protecting your LLC's assets with other types of insurance:
- General liability insurance
- Commercial property insurance
- Professional liability insurance
- Cyber liability insurance
The cost depends on factors like the number of employees, the risk level of your industry, and your past insurance claims.
Bottom Line
You need at least $51 to form an LLC in Hawaii. You may also have to pay for:
Limited time: Get 10% off LLC plans
- Pro package includes: Articles of organization, name check service, operating agreement, federal tax ID, bookkeeping tools, customizable legal documents, unlimited eSignatures for online agreements, and a customizable website.
- Premium package includes: Everything included in pro, plus business attorney guidance, unlimited 30-minute attorney consultations on new topics, LLC formation document changes within 30 days.
Set Up Your LLC - $0 + State Fees
- Free business plan included (no credit card required)
- Lifetime compliance alerts
- Comprehensive name check
- Lifetime customer support via email and phone
Business Formation Service - $39 + State Fees
- Form Your LLC, Corporation, or Nonprofit Today
- A Fully-Formed Business
- Registered Agent Service
- Business Address
- Mail Forwarding
- Privacy by Default
Starter - $0 + State Filing Fees
- Includes 1 optional free year of Worry-Free Compliance that renews at $199/year
- Standard filing speed
- 100% accuracy guaranteed
- Other services are available with additional costs
That said, the total cost of forming an LLC in Hawaii will increase depending on the additional services, documents, and licenses you need. Ultimately, it's never a bad idea to set aside an extra budget for unexpected fees.
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References
- ^ Hawaii Department of Commerce and Consumer Affairs. Fees / Uniform Limited Liability Company Act, Chapter 428, Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. Articles of Organization for Limited Liability Company, Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. State Archive Preservation Fee, Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. Fees / Uniform Limited Liability Company Act, Chapter 428, Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. Information for Domestic Limited Liability Company, Retrieved 10/15/2024
- ^ State of Hawaii Department of Taxation. Licensing Information, Retrieved 10/15/2024
- ^ State of Hawaii Department of Taxation. Comparing Hawaii's Income Tax Burden to Other States, Retrieved 10/15/2024
- ^ IRS. Federal income tax rates and brackets, Retrieved 10/15/2024
- ^ IRS. Self-employment tax (Social Security and Medicare taxes), Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. General Info on Registering, Retrieved 10/15/2024
- ^ Financial Crimes Enforcement Network. Beneficial Ownership Information, Retrieved 01/09/2025
- ^ Hawaii Department of Commerce and Consumer Affairs. Application for Reservation of Name, Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. ASSOCIATED FEES: Trade Name, Trademark, Service Mark Registrations, Retrieved 10/15/2024
- ^ Hawaii Department of Commerce and Consumer Affairs. If my registration is accepted, how long is that registration valid?, Retrieved 10/15/2024
- ^ State of Hawaii Disability Compensation Division. Frequently Asked Questions, Retrieved 10/15/2024
Nicole King is a research analyst at CreditDonkey, a business formation services comparison and reviews website. Write to Nicole King at nicole.king@creditdonkey.com. Follow us on Twitter and Facebook for our latest posts.
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