- How do you form an LLC in general?
- What do you have to do to form an LLC in Hawaii?
- What is the best way to form an LLC in Hawaii?
Q: What would I need to do, and how much does it cost to set up an LLC in Hawaii? Is Hawaii LLC worth it?
A: Registering an LLC in Hawaii isn’t very different than registering in any other state, and the state fees are fairly low. Using a virtual office to register your LLC gives you the benefits of a traditional office while providing a cost-effective, private, and professional alternative. Regardless of whether or not you live in the state, a virtual office gives you wider access to applicants, saves you money on traditional operating expenses, and allows you to focus on scalability and growth.
Virtual offices represent one of the greatest tools for online business.
One of the most notable benefits of virtual workspaces is the ability to register your business all over the country. Using a high-quality virtual office provider, you can set up shop in any of the fifty states.
You can register your LLC in states with attractive tax laws and cost-effective registration fees without living anywhere near the area. Hawaii, for example, doesn’t tax out-of-state income and has some of the lowest filing fees in the country.
Fortunately, learning how to form an LLC in Hawaii is easy.
Below, we’ll take an in-depth look at some general requirements for forming an LLC, the steps necessary for you to form an LLC in Hawaii, and the best way to register there.
As consumers continue to buy more and more goods online, it makes learning how to incorporate in various states even more pertinent. According to this study by the U.S. Small Business Administration Office of Advocacy, the market for a Hawaii LLC still has tons of room to grow.
Read more: This Hawaii Entrepreneurship Program Is Empowering Locally-Owned Businesses
Per the same study, small businesses aren’t popping up in Hawaii with the same regularity as other states — but they do account for almost half the employment in the state. This means that the market isn’t too oversaturated and that a good proportion of the small businesses in the state have been able to find success.
So, if you’ve ever asked yourself, “how do I start an LLC in Hawaii?” – look no further. Here’s an actionable guide below that will explain how to become an LLC in Hawaii, and how to do it the right way.
- How do you form an LLC in general?
- What do you have to do to form an LLC in Hawaii?
- What is the best way to form an LLC in Hawaii?
- Next steps for entrepreneurs that understand how to form an LLC in Hawaii
How do you form an LLC in general?
Forming an LLC requires you to register your business with the federal government.
This process varies slightly by state, and each state has different fees that you’ll have to pay if you want to incorporate. Depending on whether or not you register your business in your home state, you’ll either have to file your LLC as domestic or foreign.
Whether you’re hoping to learn how to form an LLC in Hawaii or in Kansas, here is a brief guide that you can follow to register your LLC in any state:
- Pick a unique name
- Appoint a registered agent
- File articles of organization with the government
- Get your EIN
Picking a unique name
Your business name is your identity. It’s what distinguishes you from your competition in the mind of consumers. Legally, a unique name is going to be a requirement no matter where you are.
Keep in mind that you can’t use your business’s name to deceive consumers, but if you really like it, you can make small changes to a name that has already been registered.
For example, if you’re hoping to register the name of your hot-dog stand — David’s Dogs — but you find that it’s already been taken – a switch to something like Dave’s Delicious Dogs should be all right. The idea is that you can’t register a name that promotes confusion or leads customers astray.
Appointing a registered agent
A registered agent is someone appointed as your business’s representative. Typically, this person will be required to live within the state in which the LLC is registered.
If you’re registering your business in your home state, it’s all right for you to appoint yourself as your business’s registered agent.
That said, it should be remembered that registered agents serve a completely different purpose than virtual offices. Even though you can serve as your own registered agent, you shouldn’t use your home address to register your business.
Filing articles of organization
To file articles of organization in the state you’ve chosen, you’ll need to go to the website of the state with which you intend to register. Although this process will vary slightly depending on the state, it can always be accomplished by exploring the state’s website.
Articles of organization are documents that explain how your LLC will be managed. Depending on where your business is located, the articles of organization will explain the exact requirements your LLC needs to meet to do business in the area.
At this time, you’ll need to have your name ready, your registered agent identified, and the nature of your LLC clearly stated. In addition, you’ll need information about the individuals involved with your LLC.
Getting your EIN
Now you’re ready to get started. If you’re sending the EIN — or employer identification number — to the IRS application form by mail, it can take up to four weeks for you to receive your number.
Your EIN is the lifeblood of your business. Just like your social security number is closely tied with your personal credit, your EIN is attached to your business credit and is a nine-digit number exclusive only to you.
Once you’ve secured the EIN, you’re ready to get started. Keep in mind that having an EIN allows you to start applying for business loans and other avenues of funding.
Make sure to take excellent care of your EIN and business credit. Businesses need money to operate, and having good business credit will allow you to get better lines of credit and more legitimate financiers.
As you can see, the process is fairly straightforward. Thanks to the internet, you don’t have to do much — outside of exploring the website of the state you’re registering in. At the end of the day, you should be able to figure it out!
Be sure to take full advantage of all the online opportunities to complete these steps. Using state websites is incredibly convenient and will save you time, money, and effort — which is what business optimization is all about.
Read more: When to Spend, When to Save: Your Complete Guide to Business Optimization
If you came here to learn how to form an LLC in Hawaii, don’t worry, we’re getting to that next!
What do you have to do to form an LLC in Hawaii?
Forming an LLC in Hawaii isn’t all that different than the process in any other state. Hawaii is beneficial to business owners because of the cost and because of the out-of-state tax implications.
According to Section 18-2235-4-03 of the Hawaii Administrative Rules, a nonresident is taxable on Hawaiian source income but is not taxable on out-of-state income.
As always, speak with an accountant to get more in-depth information about the taxes and your business’ tax obligations.
Read more: Hawaii Economic Trends, Stats & Rankings
Below, we’ve put together a list of the steps you’ll need to take to understand how to establish an LLC in Hawaii. Keep reading for an actionable guide on how to form an LLC in Hawaii:
Step 1: Create a business name
Step 2: Appoint a registered agent
Step 3: File articles of organization
Step 4: File an operating agreement
Step 5: Obtain your EIN
Step 1: Creating a business name
As you can see, the process for LLC formation isn’t that different in Hawaii than in other states. The first step is still going to be finding a business name.
Hawaii requires business owners to include “limited liability company” in the business’s name in addition to using a wholly unique name.
Fortunately, the state’s website — particularly the Hawaii Business Express page — allows you to search for businesses and even purchase Certificates of Good Standing. This is the page that will allow you to search for other businesses that are using a name similar to the one you’re hoping to register.
Step 2: Appointing a registered agent
The next step is appointing a registered agent. If you aren’t living in Hawaii, you’ll have to appoint someone other than yourself.
There are services that allow you to pay a fee to use a registered agent, but if you know anyone in the state or have any employees living in the area, you can register one of them instead.
Per Hawaii’s Department of Commerce and Consumer Affairs, the registered agent has to be an individual or entity that is authorized to transact business in the state of Hawaii.
Step 3: Filing articles of organization
The articles or organization include the names and addresses of your LLC, your registered agent, your LLC’s organizers, and managers. You also need a statement about member liability with signatures from each member. This form is what registers your LLC with the state.
Keep in mind that while your registered agent needs to live in Hawaii, you can use a virtual office for your business’s registered address. Doing so is recommended because of how much you will save in traditional lease fees and other traditional business expenses.
The form itself is located here and consists of basic agreements that limit the individuals’ liability.
How much does it cost to start an LLC in Hawaii?
Fortunately, the state’s fees are comparatively affordable. Registering a Hawaii LLC only costs $50.00 initially — and for an additional $25.00 you can expedite the process.
In addition to paying the fee, you’ll need to collect each signature — and after doing so you can complete your registration by email, mail, fax, or online.
Step 4: Filing an operating agreement
Although it’s technically optional in Hawaii, not filing an operating agreement is a surefire way to cause problems for your business down the line.
An operating agreement is a document that outlines the key aspects of your business for you, your partners, and the state. According to Hawaii Revised Statutes Chapter 428, if you choose not to file an operating agreement, your LLC will be subject to the rules and regulations provided in the same chapter.
Properly using an operating agreement for your business allows you to state the finances and functions of your business, and clearly define roles for anyone involved. Additionally, you can use the operating agreement to solidify past verbal agreements that you’d like to have in writing.
Step 5: Obtaining your EIN
Now that your business is in a position to begin operations, it’s time to get your business identification number.
Your EIN, or employer identification number, is your key to completing deals, finding lines of credit, and securing loans. Rather than dealing with Hawaii itself as you’ve done for the previous steps, you’ll be contacting the IRS directly.
Fortunately, the IRS has an excellent guide to applying for an EIN on its website here. The document you’ll need to fill out, Form SS-4, can be located here.
It’s important to fill these forms out correctly, so be careful while completing the documents.
Once you understand how to form an LLC in Hawaii, you can start focusing on the best way to handle operations in the state.
What is the best way to form an LLC in Hawaii?
It doesn’t matter whether you’re registering an LLC in Hawaii as a local or from another location — using a virtual office is always your best bet.
Not only does a virtual office provide unparalleled savings, but you can use the office to build legitimacy while still receiving many key benefits associated with traditional offices.
Below, we will examine some key benefits of using a virtual office to register your Hawaii LLC.
- Cost-effective
- Private
- Work from anywhere
- Onsite staff
- Access to meeting spaces
Cost-effective
The benefit that is of interest to a majority of entrepreneurs is the cost-effectiveness of using a virtual office rather than a traditional business.
With Alliance Virtual Office, you can reserve a Hawaiian virtual office for only $75.00 a month. Compare that to the skyrocketing prices of real estate in the area, and it’s a no-brainer. In addition to the general savings, the lack of a utility bill and unnecessary office supply expenses will make a big difference.
If you want to focus on growth and scalability, a virtual office allows you to reinvest these savings back into your business. More than anything, you want your business to be successful — and using a virtual office frees up enough capital to help you find that success.
Private
Your business address becomes public domain as soon as your LLC has been registered. This means that if you used your home address, it’s right there for the world to see.
Not only will using your home address put you on countless spam-mail lists, but it means that disgruntled customers or ex-employees can easily find out where you’re living.
Using a virtual office as your registered business address allows you to retain privacy and will keep your home address out of the public domain.
Work from anywhere
Virtual offices allow you to register and operate from anywhere you’d like. You can do business in Hawaii without ever visiting the state — although it’s recommended that you familiarize yourself with any location that you want to do business in.
High-quality virtual offices come equipped with robust mail-forwarding services, so all of your mail can be forwarded directly to you.
The ability to work from anywhere also gives you the ability to hire from anywhere. Using a virtual office opens your applicant pool to any remote worker in the country.
This wide applicant pool will help you build a healthier work environment and cut down the turnover rate.
Onsite staff
Not all virtual offices are created equal. If you’re looking for a virtual office and it doesn’t have onsite staff available to help you, it’s probably not the best choice for your business.
Alliance’s virtual offices come with professional and helpful onsite staff that are available to help with any of your office needs.
With a virtual office, you’re already going to be seeing some huge savings — so securing the highest-quality virtual office possible is well worth it.
Access to meeting spaces
Not all virtual offices give you access to meeting spaces when you need to host meetings, and this is another concern.
Not having this access means that when it comes time to meet with outside investors or potential partners, you’re going to be convening in a coffee shop, hotel, or another equally unprofessional location.
Alliance Virtual Office provides entrepreneurs with professional meeting spaces that are private and secure – unlike some random coffee shop or hotel lobby. In addition, AVO’s meeting rooms are available on-demand.
Meeting with investors in an area that reflects poorly on you as a business owner is never a good idea.
These benefits are a large part of why using a virtual office to register an LLC in Hawaii is so desirable – and that’s before you even take into account the aesthetic beauty of the Rainbow State.
In addition to the tax benefits and the cost-effective registration fees, Hawaii is one of the best states to live in the United States. The low crime rate paired with the air quality puts the state third on CNBC’s most recent ‘top ten best states to live in’ list.
Read more: These 10 states are America’s best places to live in 2022
With this being said, the higher Hawaii is on these lists, the more likely it becomes for people to move there. And when there’s more people moving to the state, the economy inevitably becomes bigger.
Take advantage of Hawaii’s desirability and use a virtual office to position your business for success.
Next steps for entrepreneurs that understand how to form an LLC in Hawaii
Registering an LLC in Hawaii is a relatively straightforward process. Create a name, designate an RA, file your articles of organization and operating agreement, obtain an EIN… and you’re ready to operate!
Not only does Hawaii have incredibly cost-effective registration fees, but the tax implications in the state can be a huge help to out-of-state entrepreneurs.
Determining how to form an LLC in Hawaii is no different than determining how to form an LLC anywhere else. It’s just a matter of using the state and IRS websites to walk through the entire process.
Registering with a virtual office saves you time and simplifies the process so you can focus on growth immediately.
Once you’ve completed the registration of your Hawaii LLC, you can get started on growth, scalability, and general customer acquisition. Thankfully, there are plenty of resources available for you to utilize in your venture.
After securing a virtual office with Alliance, feel free to explore our additional services. Not only do we provide virtual offices for businesses to register with, but we also have several other offerings that can help make your business venture even easier.
There are countless solutions available right now, and understanding how these solutions can help your business is paramount to your success.
Further Reading
- Hawaii Economic Trends, Stats & Rankings | IBISWorld
- This Hawaii Entrepreneurship Program Is Empowering Locally-Owned Businesses
- When to Spend, When to Save: Your Complete Guide to Business Optimization
- These 10 states are America’s best places to live in 2022
Alliance’s virtual offices are cost-effective, available in every state, and provide you with access to meeting rooms, helpful onsite staff, and an impressive mail-forwarding system.
Additionally, Alliance Virtual Offices uses professional and well-known addresses that improve customer perception, build legitimacy within your industry, and are easily recognizable.
Outside of our virtual offices, we offer several other virtual solutions for established entrepreneurs. It doesn’t matter if you’re hoping to move your operations to Hawaii, or if you’re hoping to start your first business in the Aloha state; we’ve got you covered.
From live receptionists that allow you to focus on core operations while screening calls to virtual business phones that protect your privacy and connect your team, Alliance has a solution for any of your online business issues.
If you’ve learned how to form an LLC in Hawaii but you still have questions, contact us!
