This week, we’re Aloha State bound in our 50 States of Incorporation series with a look at the only U.S. state made up entirely of islands, Hawaii! The 8th smallest state that is also not within the Contiguous United States, Hawaii may look like small on the surface but actually boasts a population of over a million permanent residents within the state. With tropical weather and scenery year round, public beaches and active volcanoes, Hawaii also serves as a popular destination spot for surfers, tourists, and members of the U.S. military.

Not surprisingly, tourism and the U.S. military drive a great deal of Hawaii’s $67 billion economy, alongside food exports like pineapple, macadamia nuts, sugarcane, and coffee. Dole Food Company and Mokulele Airlines call Hawaii home for their headquarters, but while these industries see constant growth within the state, other businesses have trouble keeping up. Hawaii is noted for having the highest cost of living in the United States and while it holds a low corporate income rate at 6.4%, taxes are extremely high everywhere else with the personal income tax rate currently at 8.25%. And while the state is slowly working its way up to a better business friendliness state ranking, it still has a ways to go before landing in the top 10 list.

For those who still have their heart set on starting up a beachfront business, here are a few rules to keep in mind before incorporating or forming an LLC in Hawaii.

When forming a Hawaii LLC…

  • Be sure to include the phrase ‘Limited Liability Company,’ or the abbreviations ‘L.L.C’ or ‘LLC’ after the name of the business – this is a state requirement.
  • A registered agent with a physical address in the same state must be appointed. This agent can either be someone who lives in the state full-time, or a company authorized by Hawaii to do business there. (Psst, MyCorporation has your registered agent needs covered!)
  • Foreign LLCs may conduct business within the state so long as they name a registered agent, pay a fee, and file an ‘Application for Certificate of Authority’ with the Business Registration Division.
  • Filings are typically completed within 2 weeks at the state level – rush filings take about one week.

For a business forming a Hawaii Corporation…

  • A business address within the Hawaii is not required by the state.
  • Filings are typically completed within 2 weeks at the state level – rush filings take about one week.

Ready to hula on over to Hawaii and incorporate your business there? Give call us at 1(877) 692-6772 or leave a comment below!

Leave a Reply

Your email address will not be published.