Starting an LLC in Hawaii: Process and Costs
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Formation Process
- Registration takes under 30 minutes.
- Processing Articles of Organization takes 3-5 days online, 7-10 by mail. Non-residents may need an in-state agent.
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Costs
- Main cost is $50 to file the Certificate of Formation.
- Annual report filing fee is $15.
- Need an EIN for tax and banking purposes.
- Ensure a unique name. Reserve for 120 days for $10. Appoint a registered agent.
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Timeframe
- Creating a limited liability company in Hawaii takes 3-5 business days.
Benefits of Forming an LLC in Hawaii
- An LLC protects personal assets.
- LLC limits liability and allows flexibility.
- Many start as LLCs for asset protection and tax flexibility.
Tax and Licensing Requirements
- Hawaii’s 4% tax rate ranks 41st among states.
- All LLC members taking profits out pay 15.3% self-employment tax.
- Hawaii doesn’t require a general business license but may need specific permits, such as from the Department of Health.