Aloha and welcome to our next state, Hawaii! The volcanic soil and ideal farming conditions is the reason that Hawaii is the only state to grow coffee in the United States. The state is also home to more than one-third of the world’s commercial supply of pineapples and is the worldwide leader in harvesting macadamia nuts and orchids.
Hawaii’s main source of economic income is, not surprisingly, their thriving tourism culture. While the state boasts the lowest unemployment rate in the United States, it is also home to the highest overall cost of living and housing prices. If you feel like a tropical setting is where your small business is destined to be headquartered, here’s what you need to know about incorporating in the Aloha State.
1. Hawaii.gov, the official website of the Aloha State, offers assistance in starting a business in Hawaii for entrepreneurs. They cover tips for registering a business online, a business action center, business registration division, trademark registration, and registration forms and information. That lineup also includes seven steps for starting a business. The first two steps in the process are to research the market and create a business plan.
2. Once you have taken care of these steps, it’s time to choose a legal structure. Your small business can be formed as a sole proprietorship, general partnership, limited partnership, limited liability partnership, limited liability limited partnership, corporation, S corporation, or limited liability company. Still unsure which entity type to choose? Check out the business entity comparison chart to help you decide how to file your business.
3. Next up is picking a business name. You can utilize the “Search for Business Name” feature to check and see if the business name you want is available. Downloadable forms are also available on the site to register your business with the Department of Commerce and Consumer Affairs. Anyone who decides to start a business in Hawaii must also apply for the appropriate permits and licenses, which may be found with Hawaii’s Business Action Center.
4. Finally, you will need to gather tax information which is levied by federal, state, and local (county) governments. Don’t forget to obtain an Employer Identification Number (EIN) through the IRS! This number helps to identify your business entity and allows you to hire employees. Additionally, if you plan to hire employees you’ll need to contact the Department of Commerce and Consumer Affairs in order to register with the Hawai’i Department of Labor and Industrial Relations.
5. Did you know that Hawaii has a Business Development & Support Division that supports existing local businesses as well promoting industry development and economic diversification? They help businesses grow by helping them participate in trade shows and other networking events. This also brings awareness to investment opportunities to the state of Hawaii.
Thinking about starting a small business in Hawaii? Give us a call at 1(877) 692-6772 or visit us at mycorporation.com if you have any questions about forming a business or the regulations required.
Welcome back to the 50 States of Incorporation, Rebooted where we share what it takes to start a business in each of the 50 states. Join us biweekly for advice on how to start an LLC or corporation across the United States.