1. Hawaii LLC Overview

If you operate a business in Hawaii, forming an LLC locally is required. While the state's filing fees are very cheap, the cost of doing business is elevated due to the state's unique tax requirements.

  • Low formation fee — $50 to file Articles of Organization
  • Low annual fee — $15 per year
  • General Excise Tax (GET) — Assessed on nearly all business income

2. Hawaii LLC Requirements

  • Name must contain "Limited Liability Company," "L.L.C.," or "LLC"
  • Appoint a registered agent with a Hawaii physical address
  • File Articles of Organization with the DCCA ($50)
  • Register for the General Excise Tax (GET)
  • File an Annual Report by your formation quarter deadline ($15)

3. Hawaii LLC Costs and Fees (2026)

Cost Item Amount Notes
Articles of Organization$50One-time state filing fee
Annual Report$15/yearDue end of formation quarter
Registered Agent$50–$150/yearRequired HI physical address
EINFreeApply at IRS.gov
Operating Agreement$0–$1,000Recommended, not legally required

4. How to Start a Hawaii LLC (Step by Step)

  1. 1 Choose your LLC name (must include "Limited Liability Company" or "LLC")
  2. 2 Appoint a registered agent with a Hawaii physical address
  3. 3 File Articles of Organization with the Hawaii DCCA ($50)
  4. 4 Obtain an EIN from the IRS (free at IRS.gov)
  5. 5 Draft an Operating Agreement (not filed, but legally binding)
  6. 6 Register for the General Excise Tax (GET)
  7. 7 File the Annual Report during your formation quarter ($15)
  8. 8 Open a business bank account
Don't Ignore the GET

The Hawaii General Excise Tax (GET) is not a sales tax; it is a tax on your business's gross receipts. Even if you provide services, you likely owe GET. You must register for a GET license within 20 days of starting business.

5. Hawaii Annual Report

Hawaii requires a $15 Annual Report to keep your LLC active.

  • Due Date: Dependent on the quarter you formed the LLC (Q1: March 31, Q2: June 30, Q3: Sept 30, Q4: Dec 31).
  • Fee: $15.
  • Filing: Filed online via the DCCA portal.

6. Hawaii LLC Taxes (2026)

  • State income tax — 1.4% to 11% graduated rate on pass-through profits
  • General Excise Tax (GET) — 4% state rate (plus up to 0.5% county surcharge). You must pay this on gross income, though you are allowed to pass it on to customers (max 4.712% pass-on rate).
  • Federal income tax — Pass-through to personal return
  • Self-employment tax — 15.3% on net earnings

7. Best For / Not Best For

Best For

  • Entrepreneurs living and operating in Hawaii

Not Best For

  • Out-of-state owners without Hawaii nexus
  • Cost-sensitive businesses impacted by high GET and income tax rates