Taxes and Fees for Your Hawaii LLC
Here’s a breakdown of the likely taxes and fees you’ll incur when you start and run an LLC in Hawaii.
Hawaii LLC Formation and Filing Fee
When you first form your LLC in Hawaii, you will need to pay a fee to file your Articles of Organization. You can find the current fees and turnaround times here.
Hawaii Permits and Licenses
You will need to pay licensing and permit fees on a regular basis depending on the type of business you are operating and where you are located. These vary from city to city and industry to industry. If you don’t want to do the legwork yourself, we provide a complete Business License Research Package that will tell you all of the licenses and permits required for your new LLC. It includes:
- A comprehensive package of all the licenses, permits and tax registrations required for your business
- The application forms to file with the appropriate licensing authorities
- Your customized Business License Research Package will be emailed to you within two days of your company being filed by the state
Remember that operating your business without the required licenses can expose you to risks and fines from state and local governments.
- Turnaround times for forming an LLC in Hawaii: You will normally have the option of a “Standard” turnaround time and an “Expedited” turnaround time for forming your LLC. You can learn about those times here.
- Fees for forming an LLC in Hawaii: Learn about standard filing costs here.
- Hawaii State Annual Report Fee: You will need to pay a fee when you file your annual report.
- Hawaii Permits and Licenses: Various fees for renewing your licensing and permit fees on a regular basis. These depend on the type of business you are operating and where you are located. They vary from city to city and industry to industry.
Hawaii State Income Tax
You will need to pay state tax on any business profits that you generate and pay to yourself. These profits flow through to your personal state tax return.
Hawaii State Sales/Use Tax
If you’re selling products or services in Hawaii, you may need to pay a state sales tax.
Hawaii Other Taxes
You may need to pay other taxes and fees, depending on the type of business you run. Learn about other Hawaii taxes.
Because your Hawaii LLC income flows through to your personal tax return, you must pay self-employment tax (also known as FICA, Social Security or Medicare tax) on your earnings. This is typically at a rate of 15.3 percent. You will be able to deduct your business expenses from your income when working out how much self-employment tax you owe. Note that if you are an LLC electing to be treated as an S Corp, you can reduce your self-employment tax.
Federal Income Tax
You will also need to pay regular federal income tax when you file your tax return every year. You can find details of federal tax brackets online. Note that you will be able to apply your standard deduction, personal exemption and business expenses to this tax.
Employee Insurance and Taxes
If you employ others, you will need to pay insurance and taxes to the state for each employee. Here’s how to register for the various employee taxes, insurance and other costs.
Ready to Start Your Hawaii LLC?
Incfile provides a cost-effective service to help you create your Hawaii LLC. We guide you through the process and handle most of the administrative steps, such as filing the Articles of Organization. Our basic package also provides a free Registered Agent service for the first year.