Form an LLC in Hawaii for Free with Inc Authority

Before you start any type of business, you need to first choose a niche. It’s not enough to just decide you want to start a restaurant, for example. You need to choose which type of restaurant and the menu you intend to offer.

The idea is to drill down as much as you can and identify a niche catering to a specific market need. Your choice of niche should not only depend on your interests and skills but also on feasibility and market demand.

The next step is to check whether your chosen niche has enough demand for you to successfully enter and capture a share of the market. You will need to do thorough market research and understand the level of competition.

Based on the insights, and assuming the business idea is feasible, you need to make a business plan. This will include all important information, such as your target customers, your competitors, the services you’ll offer, etc.

Every new business needs an official name that is unique and follows the naming guidelines of the state in which it’s registered. So, your first order of business when starting an LLC in Hawaii is also to shortlist a business name.

To ensure your chosen name is not used by any other business, you’ll need to check the state database for matches. Once you’ve chosen the perfect business name, you can register it while submitting your Hawaii articles of organization.

Sometimes the process of registering a new business may get delayed due to various unforeseen reasons. In such cases, it’s best to reserve your chosen business name to ensure that no other business can register it before you do.

You can reserve a business name for 120 days in Hawaii. While at it, you should also look for and secure a matching domain name for your website. It’s better to do it early on to make sure you can get one matching your LLC name.

A registered agent is a person or organization that legally agrees to receive all business correspondence only on behalf of your business. They should be based in the state in which you’re registered and must have a physical address there.

The registered agent will receive legal documents on your behalf and forward them to you in a timely manner. They’ll also be responsible for notifying you of any upcoming deadlines or compliance requirements for your business.

Another important decision that you need to make when starting an LLC in Hawaii is deciding whether it would be a domestic LLC or a foreign LLC. This decision depends on whether you already have an LLC in another state.

If you already have an LLC registered in another state and simply want to expand your business in Hawaii, you need a foreign LLC. If you want to start a new business in Hawaii, then you will need to register a domestic LLC.

An operating agreement is a document that details the rules of governance for an LLC. It is drafted by members and all the policies and procedures are put in place once the LLC members mutually agree upon all of them.

This document is not legally required but is a must if you want your business to run smoothly. The rules and guidelines ensure that all the important business decisions are made properly and all conflicts are resolved seamlessly.

This is the most important step in the process as this is where you officially register your new business in Hawaii. You need to fill out and submit Form LLC-1 to file your Articles of Organization along with the required documents and fees.

You need to submit the application to the Hawaii Department of Commerce and Consumer Affairs (DCCA), which is the authority responsible for business registrations. You can submit the form online, via mail, via fax, or in person.

After getting your Hawaii LLC registered, you must obtain a federal EIN or Tax ID number. This is a must-have for all businesses as it is required for various business purposes, such as opening a business bank account.

An EIN is like a social security number for a business. This is what the Internal Revenue Service and the government use to identify a business. It’s especially important for tax purposes as the IRS will use this to track your tax filings.

Keeping personal and business finances separate is a must for every small business. As a small business owner, you can’t afford to risk your personal assets in case the business incurs losses or dissolves completely.

That’s why it’s so important to open a separate bank account for your business, to keep the business finances completely separate. This is also useful in securing loans and funding for your business, without involving the members.

Once you’ve registered your business, you can still not start operations until you acquire the required business licenses and permits. These differ from state to state and different types of licenses may be required for different businesses.

Find out the requirements for your specific business at the local, state, and federal levels and then get the required licenses. You may need a general business license or a professional license depending on your type of business.

One of the defining characteristics of a Limited Liability Company is that it has more tax flexibility than any other business entity. A single-member LLC, by default, is treated as a Sole Proprietorship, and the taxes are paid by the members.

A multi-member LLC, however, can choose to be taxed as a C-Corp, an S-Corp, or a Partnership. You need to consider the tax advantages and disadvantages of each to make an informed decision for your new LLC in Hawaii.

Sometimes the official business name becomes too long if the state requires adding words like LLC or limited to it, which is the case in most states, including Hawaii. This makes the name unsuitable for marketing and branding purposes.

In such cases, you can choose to run your business under an assumed name or fictitious name by filing for a DBA (doing business as). This will allow you to register a more marketable name that you can use for branding purposes.

The process of starting an LLC is now complete, but your work doesn’t end here. As a new business owner, you need to make sure that your Limited Liability Company complies with all ongoing compliance requirements.

Make sure you file your taxes on time, file timely annual reports, and meet any other compliance requirements set forth by the state of Hawaii. This will ensure that you stay in good standing with the state and maintain your LLC status.

Here are the features you’ll get with this plan:

• Business name search: Conduct a free and quick business name search to determine if your chosen name is available for use within the state.

• Complimentary registered agent services: Get free registered agent services for 1 year from a local resident agent with a physical address in Hawaii.

• Digital document storage: Get access to an online dashboard where you store and manage your business documents, instead of maintaining physical copies.

• Tax consultation: Talk to a tax expert and get a brief consultation on how to maximize your tax savings and get the most tax benefits for your business.

• LLC filing: Let a team of experts review, prepare, and file your Hawaii Articles of Organization with the State’s business registration division.

• S-Corp election: Seek expert help in filing Form 2553 for the S-Corp election if you want to acquire the special tax status of an S-Corp for tax benefits.

• Business funding analysis: Let an expert assess your short-term business funding needs and give you options to secure funding for your business.

Overall, the free plan is perfect for those who simply want an error-free and hassle-free way to start an LLC in Hawaii. But those looking for additional services should check out the two paid plans, described below.

Price: Free

Here are the additional services you’ll get with this plan apart from what you get in the free plan:

• LLC operating agreement: Get detailed templates for creating an LLC operating agreement yourself or seek help from experts who can do it for you. In any case, you’ll be sure that you don’t miss any important details to add to it.

• Employer Identification Number: Easily apply for and quickly obtain a federal EIN with the help of Inc Authority. Its team will take care of the entire application process from filling out the application to reviewing and submitting it.

• Corporate forms and documents package: Get access to a comprehensive package of templates for various business and legal documents. Use this to quickly draft professional documents without needing expert help.

• Annual compliance notifications: Focus on growing your business without worrying about missing important deadlines and Inc Authority’s team will inform you of any upcoming ones and ensure you don’t miss anything.

• Detailed tax consultation: Get access to a tax expert who will dedicatedly work with you to help you achieve maximum tax benefits. Ask questions, seek help, and get as detailed a tax consultation as you need to understand things.

• Web domain + 5 business email addresses: Easily launch a website and get organic traffic by using Inc Authority’s web design and marketing services, which it offers via a tie-up with leading service providers like GoDaddy.

This plan is perfect for those who want some essential add-on services, such as EIN filing and web design, at an affordable price.

Price: Custom

Here are the additional services you’ll get over and above what you get with the Starter plan:

• Customer success advisor: Get a dedicated customer success advisor who will help you make use of Inc Authority’s services to your advantage. They’ll answer all your questions, guide you through the LLC formation process and beyond, and help you establish a successful business.

• Private banking specialist: Work with a banking professional who will help you understand your business banking requirements and provide you with some great options. From choosing the right banking partner to opening different types of accounts they’ll guide you through everything.

• Personalized business advisory: Consult with experts in various aspects of business and get advice on how to start a successful business and scale it. You will get unlimited access to personalized business advisory services that can help you market and grow your business quickly.

• Expedited preparation & filing: Let the team at Inc Authority treat your LLC application as the top priority and file it within the same day. This helps you skip the queue and get your new business started quickly. You will also get priority support and prompt resolution to your needs.

The top-tier plan is perfect for those who want priority services and are willing to pay for them. But if all you want to do is register a Hawaii LLC, then the free plan is enough for you.

Price: Custom