How to Form an LLC in Hawaii (2026)

1. 1Choose a name for your LLC and verify availability by searching the Hawaii DCCA business name database. Your name must include "Limited Liability Company," "LLC," or "L.L.C."
2. 2Appoint a registered agent with a physical street address in Hawaii.
3. 3File Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs (DCCA). The filing fee is $50. File online through the Hawaii Business Express portal.
4. 4Obtain an EIN (Employer Identification Number) from the IRS at no cost.
5. 5Create an operating agreement. Not legally required in Hawaii but strongly recommended.
6. 6Open a business bank account with your Articles of Organization, EIN, and operating agreement.
7. 7Register for Hawaii's General Excise Tax (GET) with the Department of Taxation. Almost all businesses in Hawaii must pay GET.
8. 8File your first annual report by the end of the quarter in which your LLC was formed. The fee is $15.

• ✓Obtain an EIN from the IRS (free, apply online at irs.gov)
• ✓Open a dedicated business bank account
• ✓Register for Hawaii General Excise Tax (GET) with the Department of Taxation
• ✓Get business insurance (general liability at minimum)
• ✓Set up an accounting system to track income and expenses
• ✓Apply for any required county business licenses
• ✓File your first annual report ($15) by the end of your formation quarter

Your Hawaii LLC name must contain "Limited Liability Company," "LLC," or "L.L.C." Restricted words like "Bank," "Insurance," or "Trust" require additional licensing. The name must be distinguishable from existing business entities registered with the Hawaii DCCA.

Hawaii LLCs are pass-through entities by default. Members pay Hawaii individual income tax on profits (rates from 1.4% to 11%). Hawaii also imposes a General Excise Tax (GET) of 4% (4.5% on Oahu) on all business gross income — this functions like a sales tax but applies to services too. The GET applies to your gross revenue, not net profit.

LLC vs. other structures in Hawaii

Hawaii has low LLC formation costs ($50 filing, $15/year), but the 4% General Excise Tax on all gross income is a significant ongoing cost that applies to all business structures. The GET is unique to Hawaii and cannot be avoided by choosing a different entity type. For high-revenue, low-margin businesses, the GET can be burdensome.

• •File an annual report by the end of the quarter in which your LLC was formed — $15 fee
• •File and pay General Excise Tax (GET) returns monthly, quarterly, or semi-annually
• •Maintain a registered agent with a physical address in Hawaii at all times
• •Keep your operating agreement current and update it when membership changes
• •File Hawaii state income tax returns for all members receiving pass-through income

Hawaii offers a reasonable cost structure for LLCs. The $50 filing fee is competitive, and ongoing costs are manageable. If you operate in Hawaii, forming your LLC here makes the most sense.

In general, you should form your LLC in the state where you physically live and conduct business. Forming in a "tax-friendly" state like Wyoming, Delaware, or Nevada sounds appealing, but if you operate in Hawaii, you will still need to register as a foreign LLC there — paying fees in both states.

An LLC is almost always a better choice than operating as a sole proprietorship because of the personal liability protection it provides. However, if your LLC is highly profitable, you should talk to a CPA about electing S-Corp tax treatment to potentially reduce your self-employment tax burden.

What Hawaii LLC Owners Need to Know

• •Hawaii has one of the lowest total LLC costs: $50 to file and $15/year for the annual report
• •Hawaii imposes a General Excise Tax (GET) of 4% on all business income, which functions similarly to a sales tax
• •The annual report is due by the end of the quarter in which the LLC was formed

Official Hawaii Resources

• Hawaii DCCA — Business Registration Division
• Hawaii Online Business Filing