How to Create a Hawaii LLC: A Step-by-Step Do It Yourself (DIY) Guide | Inc Authority

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How to Create a Hawaii LLC: A Step-by-Step Do It Yourself (DIY) Guide

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Forming a Limited Liability Company (LLC) in Hawaii involves several steps in compliance with state laws. Here’s a step-by-step guide to help you through the process:

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STEP 1: Choose a Name for Your Hawaii LLC

Your LLC name must be distinguishable from other registered businesses in Hawaii and must include “Limited Liability Company” or an abbreviation like “LLC” or “L.L.C.”

Perform a name search on the Hawaii Business Express website or the Department of Commerce and Consumer Affairs (DCCA) Business Name Search to check for name availability.

If desired, you can reserve your LLC name for 120 days by filing a Name Reservation with the Hawaii DCCA, along with the required fee.

Time it Takes to name an Hawaii LLC

Researching and deciding on a name: 1-2 hours

If opting for a name reservation: The act of filing can take about 10-15 minutes.

If opting for a name reservation: Filing can take minutes, but approval might take a few days to a week.

STEP 2: Appoint a Registered Agent

Hawaii requires you to appoint a registered agent for your LLC who will accept legal documents on behalf of your company.

Your registered agent must be a resident of Hawaii or a corporation authorized to do business in Hawaii and must have a physical street address in the state.

Time it Takes to be a Registered Agent

Registered Agents MUST BE at the Business Address everyday during business hours. This is why Home Addresses Are Not Accepted.

If you already have someone in mind (like an attorney or a service), this can be quick. If you need to find and appoint a registered agent: 1-3 hours.

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STEP 3: File Articles of Organization

To register your LLC, you need to file Articles of Organization with the DCCA.

You can file online using the Hawaii Business Express service or download and mail the form to the appropriate address.

Information required includes the LLC’s name, purpose, duration (if not perpetual), registered agent’s name and address, and whether the LLC will be managed by members or managers.

There is a filing fee, which you must pay at the time of submission.

Time it takes to write the Articles of Organization

Preparing the document: 1-2 hours

Filing online: 30 minutes to 1 hour.

Waiting for confirmation/approval: This can range widely, but typically, online filings can be processed in a few days to a couple of weeks.

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STEP 4: Create an Operating Agreement

Although not legally required in Hawaii, it’s highly recommended that you create an LLC operating agreement.

This internal document should outline member responsibilities, ownership percentages, voting powers, management structure, and rules for meetings and record-keeping.

This agreement is not filed with the state; it’s an internal document.

Time it takes to write an Operating Agreement

If using a template and making minimal changes: 1-3 hours

If drafting from scratch or having extensive negotiations among members: Several days to weeks.

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STEP 5: Obtain an Employer Identification Number (EIN)

Apply for an Employer Identification Number (EIN) from the Internal Revenue Service (IRS) for tax purposes.

You can apply for an EIN online at no cost through the IRS website: https://www.irs.gov/businesses/small-businesses-self-employed/apply-for-an-employer-identification-number-ein-online

The EIN will be used for tax filings, opening bank accounts, and hiring employees.

Time it takes to get an EIN / Tax ID

Filling out the online form and receiving the EIN: Approximately 0.5 to 1 hour (the online process is relatively quick if there are no complications).

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SO HOW MUCH TIME WILL IT TAKE TO FORM AN LLC MYSELF? DO IT MYSELF (DIY) an LLC?

Total Time Investment (Minimum): 5 hours (if you exclude the higher range estimates and name reservation)

Total Time Investment (Maximum): 11.5 hours (if you include the higher range estimates and name reservation)

This gives a ballpark range of 5 to 11.5 working hours for an individual, excluding all waiting times. It’s worth noting that these times can vary based on the person’s familiarity with the processes and any specific details or challenges related to the business being set up.

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