How to Create an LLC in Hawaii – Forbes Advisor

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Once you have completed the forms, you will want to start with the other forms and documents needed for your business. Here are some important next steps in setting up your LLC.

Create an operating agreement

The Operating Agreement is a document that describes how you intend to manage the LLC. Although it is not a mandatory state form, it is important because it contains voting rights, member and manager responsibilities, company management rules, and descriptions of the how ownership can be transferred. You can use a template or create one from scratch. Keep this document in your company filing cabinet.

Obtain an employer identification number

The EIN is a nine-digit tax identification number (TIN) that is sometimes referred to as the Federal Employer Identification Number (FEIN) or Federal Tax Identification Number (FTIN). Obtaining it will allow you to open a bank account and file your taxes on behalf of the LLC. Obtaining an EIN is free. You can apply for an EIN by visiting the IRS website using the information in your articles of association.

According to IRS regulations, an LLC with more than one member must obtain an Employer Identification Number (EIN). Single member LLCs need this if they have employees or choose to be taxed as a corporation or S corp.

Single-member LLCs without employees have the option of using the owner’s social security number instead, but all other LLCs must have an EIN.

Once you have obtained the EIN, keep a copy of the official document in the company binder with other important documents.

Get Hawaii Tax ID Numbers

You will also need a Hawaii tax ID number to properly operate your business in the state. Obtain the tax identification number by completing Form BB-1 (State of Hawaii Basic Business Application). This application is available online at Hawaii.gov.

This is a consolidated state tax registration application. It allows you to obtain required state tax, employer licenses and permits, including the Hawaii General Excise Tax (GET) license. It will also be used to determine your withholding tax account and your Unemployment Insurance (UI) tax account.

Domestic Hawaii LLC Annual Report

You will be required to complete a Hawaii Domestic LLC Annual Report each year. This report can be completed online and there is a $15 filing fee associated with it. You must file these annual returns in the quarter that contains the anniversary date of the registration. Failure to file this report may result in an annual penalty of $10 and ultimately the dissolution of the business if not made for two years.

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