How to Form an LLC in Hawaii (2026)
Reviewed by DocDraft Legal Team · Hawaii · Last updated 2026-08-06
A limited liability company (LLC) is a business structure that legally separates the company from the people who own it, so the owners are generally not personally responsible for the company's debts. Forming one in Hawaii means filing a formation document with a state agency and paying its fee to bring the company into legal existence. In Hawaii you create an LLC by filing the Articles of Organization with the Department of Commerce and Consumer Affairs, Business Registration Division, through the Hawaii Business Express portal, and paying a $50 filing fee. Two features make Hawaii different from many states. First, Hawaii has no franchise tax on LLCs. Instead it levies a General Excise Tax (GET) on the gross receipts of businesses, which is charged on what the company takes in rather than on its profit. Second, every Hawaii LLC must file an annual report with the DCCA for a $15 fee to stay in good standing. Hawaii LLCs are governed by the Hawaii Uniform Limited Liability Company Act, Hawaii Revised Statutes Chapter 428. This guide explains what an LLC is, the exact Hawaii steps and fees, and the deadlines that keep the company in good standing.
Find out where you stand in Hawaii
Where are you in forming your LLC?
DocDraft provides document preparation, not legal advice.
How do you form an LLC in Hawaii?
File the Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs, Business Registration Division, through the Hawaii Business Express portal and pay the $50 filing fee. You must name a registered agent with a Hawaii address to accept legal documents. Online filings are typically processed in three to five business days.
Does a Hawaii LLC pay a franchise tax?
No. Hawaii does not impose a franchise tax on LLCs. Instead the state levies a General Excise Tax on the gross receipts of businesses, meaning the tax applies to what the company takes in rather than to its net profit. A Hawaii LLC registers for and pays the GET through the Department of Taxation.
Does a Hawaii LLC have to file an annual report?
Yes. Every Hawaii LLC must file an annual report with the Department of Commerce and Consumer Affairs to stay in good standing. The fee is $15. The report confirms the LLC's address, its registered agent, and its management, and is filed each year through the Hawaii Business Express portal.
Does Hawaii require newspaper publication to form an LLC?
No. Hawaii does not require an LLC to publish notice of its formation in a newspaper. Unlike New York, Arizona, and Nebraska, where publication is a condition of forming or operating, a Hawaii LLC is complete once the Business Registration Division files the Articles of Organization, with no separate publication step.
Hawaii LLC formation at a glance
You form a Hawaii LLC by filing the Articles of Organization with the Department of Commerce and Consumer Affairs, Business Registration Division, for a $50 filing fee, submitted online through the Hawaii Business Express portal. What sets Hawaii apart is its tax structure. Hawaii has no franchise tax on LLCs. Instead the state charges a General Excise Tax on the gross receipts of a business, so the tax is measured on total income coming in rather than on profit, and it is administered by the Hawaii Department of Taxation. Hawaii also requires an annual report filed with the DCCA for a $15 fee to keep the company in good standing. Every LLC must name and maintain a registered agent with a physical Hawaii address to receive lawsuits and official mail. Hawaii does not require newspaper publication. You can reserve an available name with the Business Registration Division for a $10 fee while you prepare your paperwork. The governing statute is the Hawaii Uniform Limited Liability Company Act, Hawaii Revised Statutes Chapter 428.
Forming a two-owner Hawaii LLC, step by step
Suppose two friends in Honolulu want to open a small design studio as an LLC. First they search the DCCA business name search to confirm their name is available and includes a designator such as LLC, and they can reserve the name for a $10 fee while they prepare paperwork. Next they appoint a registered agent: one owner lives in Hawaii and agrees to serve, using a Hawaii street address, not a P.O. box, where legal papers can be delivered. They then file the Articles of Organization through the Hawaii Business Express portal and pay the $50 filing fee. The LLC legally exists once the Business Registration Division files it, typically within three to five business days for online filings. Because they have two members, they also write an operating agreement setting each owner's percentage and how profits split, even though Hawaii does not require them to file it. They apply to the IRS for a free EIN so the partnership can file taxes and open a bank account, and they register with the Hawaii Department of Taxation for a General Excise Tax license because the GET applies to the studio's gross receipts. Finally they calendar the $15 annual report with the DCCA each year so the LLC stays in good standing.
Relevant Laws
Hawaii Uniform Limited Liability Company Act (HRS Chapter 428)
Chapter 428 governs the formation, management, and dissolution of every Hawaii LLC. It sets who may form an LLC, the required contents of the Articles of Organization, the registered agent requirement, and the default rules for member-managed and manager-managed companies. It is administered by the Department of Commerce and Consumer Affairs, Business Registration Division.
Articles of Organization (HRS Chapter 428; filed with the DCCA)
A Hawaii LLC is formed by delivering Articles of Organization to the Department of Commerce and Consumer Affairs, Business Registration Division, for filing. The Articles state the LLC's name, its principal address, its registered agent, and whether it is member-managed or manager-managed. The filing fee is $50, and the LLC legally exists once the Division files the document.
Registered agent requirement (HRS Chapter 428)
Hawaii requires every LLC to designate and continuously maintain a registered agent in the state. The agent, an individual residing in Hawaii or a business authorized to act as an agent, receives lawsuits and official notices for the company at a physical Hawaii street address. The agent is named on the Articles of Organization and confirmed on each annual report.
Annual report (HRS Chapter 428; $15 fee)
Every Hawaii LLC must file an annual report with the Department of Commerce and Consumer Affairs to remain in good standing. The report keeps the LLC's address, registered agent, and management current and carries a $15 fee. It is filed through the Hawaii Business Express portal, and missing it can lead the Division to administratively dissolve the LLC.
General Excise Tax (HRS Chapter 237)
Rather than a franchise tax, Hawaii imposes a General Excise Tax on the gross receipts of businesses operating in the state, administered by the Department of Taxation. The GET applies to what the company takes in from sales and services, not to its net profit. A Hawaii LLC must obtain a GET license and file and pay the tax on its business income.
IRS federal tax classification (default pass-through)
The IRS does not tax the LLC as a separate category. By default a single-member Hawaii LLC is disregarded and taxed like a sole proprietorship, and a multi-member LLC is taxed as a partnership, with income passing through to the owners. An LLC may instead elect S corporation or C corporation treatment. This federal classification is separate from Hawaii's General Excise Tax, which applies to gross receipts.
Regional Variances
How forming an LLC in Hawaii differs from other states
No franchise tax, but a General Excise Tax on gross receipts
This is the headline difference. Hawaii charges no franchise tax on LLCs. Instead the state levies a General Excise Tax on the gross receipts of a business, so the tax is measured on total income coming in rather than on profit. Many states with a minimum franchise tax charge a flat annual amount regardless of income, while Hawaii's GET rises with how much the business takes in.
Low $50 formation fee
Hawaii's $50 filing fee for the Articles of Organization is among the lower formation costs in the country. States like Massachusetts at $500 and Nevada at $425 charge far more to form. The modest entry cost makes the ongoing GET obligation, not the filing fee, the number a Hawaii owner should plan around.
Annual report, not biennial
Hawaii requires an annual report filed with the DCCA for a $15 fee. Some states require a report only every two years, and a few require none at all. The annual cadence means a Hawaii LLC has a filing to track every year, and missing it can lead to administrative dissolution.
No newspaper publication requirement
Hawaii does not require you to publish notice of formation in a newspaper. New York, Arizona, and Nebraska do, which adds cost and a deadline. A Hawaii LLC is complete once the Business Registration Division files the Articles of Organization, with no publication step.
Formation document and filing office
Hawaii uses the Articles of Organization, filed with the Department of Commerce and Consumer Affairs, Business Registration Division, through Hawaii Business Express. Some states call the document a Certificate of Formation or Certificate of Organization, and many route filings through a Secretary of State rather than a consumer affairs department.
Suggested Compliance Checklist
Confirm your LLC name is available and compliant
Before filing days after startingSearch the DCCA business name search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Business Registration Division for a $10 fee while you prepare your Articles of Organization.
Appoint a registered agent
Before filing days after startingHawaii requires a registered agent with a physical Hawaii street address who can accept legal documents. Decide whether you, a co-owner who lives in Hawaii, or a commercial registered agent service will serve. You will name the agent on the Articles of Organization, so settle this first.
File the Articles of Organization with the DCCA
To create the LLC days after startingFile the Articles of Organization with the Department of Commerce and Consumer Affairs, Business Registration Division, through the Hawaii Business Express portal and pay the $50 filing fee. The LLC legally exists only once the Division files it. Keep the filed confirmation as proof of formation.
Adopt an operating agreement
At or soon after formation days after startingPut the ownership percentages, profit split, management structure, and exit rules in writing. Hawaii's LLC act expects members to have an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft.
Get a federal EIN from the IRS
Before opening a bank account or hiring days after startingApply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate.
Register for the General Excise Tax with the Department of Taxation
Before doing business days after startingBecause Hawaii has no franchise tax and instead taxes gross receipts, a Hawaii LLC must obtain a General Excise Tax license from the Department of Taxation and then file and pay the GET on its business income. Register before you start earning receipts and confirm current rates and filing frequency with the Department of Taxation.
File the annual report with the DCCA
Each year during your registration-quarter window days after startingFile the annual report with the Department of Commerce and Consumer Affairs through the Hawaii Business Express portal each year, during the filing window tied to the quarter you registered. The fee is $15. It confirms the LLC's address, registered agent, and management. Missing it can lead to administrative dissolution.
| Task | Description | Document | Days after starting |
|---|---|---|---|
| Confirm your LLC name is available and compliant | Search the DCCA business name search to confirm your desired name is not already in use and that it includes a required designator such as LLC or Limited Liability Company. Avoid restricted words that need special approval. You can reserve an available name with the Business Registration Division for a $10 fee while you prepare your Articles of Organization. | - | Before filing |
| Appoint a registered agent | Hawaii requires a registered agent with a physical Hawaii street address who can accept legal documents. Decide whether you, a co-owner who lives in Hawaii, or a commercial registered agent service will serve. You will name the agent on the Articles of Organization, so settle this first. | - | Before filing |
| File the Articles of Organization with the DCCA | File the Articles of Organization with the Department of Commerce and Consumer Affairs, Business Registration Division, through the Hawaii Business Express portal and pay the $50 filing fee. The LLC legally exists only once the Division files it. Keep the filed confirmation as proof of formation. | - | To create the LLC |
| Adopt an operating agreement | Put the ownership percentages, profit split, management structure, and exit rules in writing. Hawaii's LLC act expects members to have an operating agreement, but you do not file it with the state. It governs how the LLC runs and overrides the act's default rules. Attorney review of the agreement is available as an option through DocDraft. | llc-operating-agreement | At or soon after formation |
| Get a federal EIN from the IRS | Apply for an Employer Identification Number free on the IRS website. Multi-member LLCs, LLCs with employees, and LLCs electing corporate tax treatment need one. Single-member LLCs with no employees usually get one anyway to open a business bank account and keep business and personal finances separate. | - | Before opening a bank account or hiring |
| Register for the General Excise Tax with the Department of Taxation | Because Hawaii has no franchise tax and instead taxes gross receipts, a Hawaii LLC must obtain a General Excise Tax license from the Department of Taxation and then file and pay the GET on its business income. Register before you start earning receipts and confirm current rates and filing frequency with the Department of Taxation. | - | Before doing business |
| File the annual report with the DCCA | File the annual report with the Department of Commerce and Consumer Affairs through the Hawaii Business Express portal each year, during the filing window tied to the quarter you registered. The fee is $15. It confirms the LLC's address, registered agent, and management. Missing it can lead to administrative dissolution. | - | Each year during your registration-quarter window |
Frequently Asked Questions
An LLC, or limited liability company, is a business structure that separates the company from its owners as a matter of law. The owners, called members, are generally not personally liable for the company's debts or lawsuits, so a creditor usually cannot reach a member's home or personal savings for a business obligation. In Hawaii, LLCs are created under the Hawaii Uniform Limited Liability Company Act, Hawaii Revised Statutes Chapter 428. It combines that liability shield with pass-through taxation and lighter paperwork than a corporation.
You file the Articles of Organization with the Hawaii Department of Commerce and Consumer Affairs, Business Registration Division, and pay a $50 filing fee. Filings go through the Hawaii Business Express portal. The Articles name the LLC, its principal address, its registered agent, and whether it is member-managed or manager-managed. The company legally exists once the Division files the document, not when you submit it.
Hawaii charges no franchise tax on LLCs. Instead it levies a General Excise Tax on the gross receipts of businesses, administered by the Department of Taxation. The GET applies to what your company takes in from sales and services rather than to its net profit. A Hawaii LLC must obtain a GET license and then file and pay the tax on its business income. Confirm current rates and filing frequency with the Department of Taxation.
Hawaii uses an annual cadence, not a biennial one. You file the report with the Department of Commerce and Consumer Affairs each year during a filing window tied to the calendar quarter in which the LLC was registered. The fee is $15, paid through the Hawaii Business Express portal. The report confirms the LLC's address, registered agent, and management. Missing it can lead the Business Registration Division to administratively dissolve the LLC.
Yes. You can reserve an available name with the Business Registration Division for a $10 fee while you prepare your paperwork. First search the DCCA business name search to confirm the name is not already in use and includes a required designator such as LLC or Limited Liability Company. Reserving the name holds it so another filer cannot take it before you submit your Articles of Organization.
Yes. Hawaii requires every LLC to name and continuously maintain a registered agent with a physical Hawaii street address, not a P.O. box, but you can fill that role yourself if you live in Hawaii. You can also name a co-owner who lives in the state or hire a commercial registered agent service. You list the agent on the Articles of Organization and confirm it on each annual report. DocDraft provides guided LLC documents, and attorney review is available as an option.
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