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How to start an LLC in Hawaii

By Brent Chudoba, editor Updated

Forming an LLC in Hawaii costs $50 to file the Articles of Organization (Form LLC-1) with the Hawaii Secretary of State. After that you file an annual report of $15. Hawaii charges no franchise tax on a standard LLC. The registered agent must maintain a physical street address (place of business) in Hawaii under HRS §428-107; a PO box alone is insufficient. A certified copy of the Articles costs an optional additional $10.00.

How much does it cost to start an LLC in Hawaii?

Hawaii LLC costs (reviewed August 29, 2026)
ItemCost
Filing fee (Articles of Organization (Form LLC-1))$50
Annual report$15/year
Franchise or business taxNone
Registered agentRequired

Source: Hawaii Secretary of State, fee schedule reviewed August 29, 2026.

What are the steps to form an LLC in Hawaii?

  1. Name your LLC. Pick a name that is available and meets Hawaii naming rules, then check it against the Secretary of State's business database.
  2. Appoint a registered agent. Hawaii requires a registered agent with a physical in-state address to receive legal mail. You can be your own agent, or hire a service.
  3. File the Articles of Organization (Form LLC-1). Submit it to the Hawaii Secretary of State and pay the $50 fee. This is the step that legally creates the LLC.
  4. Get an EIN from the IRS. It is free and takes minutes. Do not pay a service for it. See how to get an EIN free from the IRS.
  5. Calendar your annual report. Hawaii charges $15 to keep the LLC in good standing. Missing it risks penalties or administrative dissolution.
  6. Open a business bank account. Keep business money separate from personal money so your liability protection holds up.

Does Hawaii have a franchise tax on an LLC?

No. No general franchise tax applies to LLCs in Hawaii.

How is an LLC taxed in Hawaii?

By default, an LLC is a pass-through entity: it pays no income tax itself, and the profits flow to the owners' personal returns. Hawaii has a state individual income tax with a top rate of 11% (graduated brackets), so those profits are taxed on your Hawaii return on top of federal tax. 12 brackets from 1.40% to 11.00%. For taxable years beginning after 12/31/2024 (Act 46, SLH 2024 bracket-widening/'Green Affordability Plan II'): single filers pay 1.40% up to $9,600 and 11.00% above $325,000; married filing jointly 1.40% up to $19,200 and 11.00% above $400,000; head of household 1.40% up to $14,400 and 11.00% above $487,500. Thresholds continue widening in steps through taxable years after 12/31/2030.

An LLC can also elect to be taxed as an S-corp, which changes how owners pay self-employment tax. See LLC vs S-corp vs sole proprietorship and how self-employment tax works.

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