We provide affordable Non-Lawyer form and document preparation services. You should not use our services as a substitute for obtaining legal advice. We are not attorneys licensed to practice law in the State of Hawaii. We are not a government agency and our agencies, representatives, officers, employees and agents do not provide legal advice regarding your case.
The following overview will help you understand the Hawaii statutory requirements to form a corporation. There are both legal and tax implications which should be fully understood. LEGAL-EZ does not provide legal or tax advise regarding forming or registering a corporation. LEGAL-EZ will prepare all the documents necessary for forming and registering your corporation, and will coordinate and complete the filing process for you.
FOR PROFIT CORPORATION
In order to form your business corporation, you must first decide upon the name of the corporation. In Hawaii, all names must include a corporate suffix such as “Corporation”, “Corp.”, Incorporated”, “Inc.”, “Company”, “Co.”, or “Limited”. To start your corporation, LEGAL-EZ will prepare your Articles of Incorporation, file them with the Regulatory Agency of the Department of Commerce and Consumer Affairs, along with the required filing fee of $50 (for the normal 20-day turnaround) or $75 (for rush or 2 - 3 days). The Articles must include the name of your corporation, street address of the business, the number of share of stock authorized to be issued, the name and street address of the initial Registered Agent (the person who will receive official documents on behalf of the corporation), and the name and address of the initial Incorporator(s). Only one person needs to sign the Articles of Incorporation.
LEGAL-EZ will then file your Articles for you, obtain a General Excise Number (for State of Hawaii taxes), and obtain an Employer’s Identification Number (EIN), the federal government’s ID number, for filing taxes, hiring employees, opening back accounts, or obtaining loans, etc. LEGAL-EZ will also obtain your ‘corporate kit’, which includes your corporate seal, the Articles of Incorporation, By-Laws, Minutes (examples), and Stock Certificates. All your documents and the corporate kit will be prepared for you generally within thirty days.
LIMITED LIABILITY COMPANY
The following overview will help you understand the Hawaii statutory requirements to form a Limited Liability Company (LLC). There are both legal and tax implications which should be fully understood. LEGAL-EZ does not provide legal or tax advice regarding forming ore registering a Limited Liability Company. LEGAL-EZ will prepare all the documents necessary for forming and registering your Limited Liability Company and will coordinate and complete the filing process for you.
Limited liability companies are a relatively new form of business entity, which offer simplicity and flexibility to businesses in Hawaii. Members are afforded the limited liability enjoyed by corporate shareholders and the pass through tax advantages of a partnership without the restrictions imposed on limited partnerships and Subchapter S corporations.
ARTICLES OF ORGANIZATION
A Limited Liability Company must have at least one or more members which may be individuals, partnerships, limited partnerships, trusts, estates, associations, corporations, limited liability companies, or other entities. The Articles of Organization must be executed by one or more persons who may e members of the Limited Liability Company but are not required to be. The existence of the Limited Liability Company begins upon filing the executed Articles of Organization with the Regulatory Agency of the Department of Commerce and Consumer Affairs (DCCA), and payment of the applicable fee. The filing fee for the Articles of Organization is $50.00 and will be filed within twenty (20) days. For a ‘rush’ the fee is $75.00 and will be filed within two to three (2 - 3) days.
The name of the Limited Liability Company must contain the words “Limited Liability Company”, or “Limited Company”, or the abbreviations “L.L.C.”, “L.C.”, “LLC”, or “LC”. The word “Company” may be abbreviated to “Co.” and the word “Limited” may be abbreviated as “Ltd.” The name of the Limited Liability Company may contain the name of one or more members but not any words stating or implying that the LLC is connected with a state or federal government agency or a corporation or other entity chartered under the laws of the United States.
● Both are legal entitles created by a state filing.
● Both help protect your personal assets from your business liabilities.
● Both have very few ownership restrictions and may be owned by a non-U.S. resident, business entities or individuals (except corporations with Sub-Chapter S status)
SUMMARY OF L.L.C. ADVANTAGES:
The L.L.C. combines many of the advantages of a corporation, such as limited personal liability, with the tax advantages of a partnership. An L.L.C. offers personal liability protection to all of its owners (called “Members” or “Managers”). It may be treated like a partnership or a S Corporation for tax purposes, allowing income or losses to be reported on the Members’ individual tax returns, thereby avoiding double taxation. Both business entities and individuals can be owners of an L.L.C.
● Profits/losses may be passed through to personal income tax returns of owners.
● Flexibility in management and organization of the business
● L.L.C.s do not have the ownership restrictions of S corporation, making them ideal business structures for foreign investors.
WHERE TO INCORPORATE?
Ths is one of the most common questions for businesses wishing to form a corporation of L.L.C. It’s usually best to incorporate or form an L.L.C. in your home state, however, an entity may elect to incorporate outside the state in which the corporation conducts a majority of its business and choose to incorporate in any of the 50 states or the District of Columbia.
● Typically the least complicated, if you only plan to operate the business in your home state.
● Avoid paying franchise taxes and filing annual reports in more than one state.
● Usually costs less to incorporate locally.
May miss out on the advantages of forming a corporation or L.L.C. in Delaware or Nevada.