Organizing an LLC in Hawaii – Basic Steps

1.  Collect your important information, such as:

Proposed Name of Company

Names and addresses of all proposed members

Name and address of person designated as “Registered Agent”

Proposed percentages of membership/ownership

2.  Go to this site to check if your proposed company name is likely to be available.

Search on your proposed name at: http://hbe.ehawaii.gov/cogs/search.html

3.  Determine what Type of LLC you wish to organize (Input from Attorney and/or CPA desirable)

Decision 1:  Single Member or Multiple Member

Decision 2:  Member Managed or Manager Managed

4.  Determine capitalization (Input from CPA strongly advised) This step determines how you fund your company, and what percentage ownership the members will have

5.  File Articles of Organization with the Dept. of Commerce & Consumer Affairs (Assistance of Attorney desirable)This is the form that registers you as an LLC.  The DCCA will send back a “stamped” copy showing the date your LLC was approved by the DCCA. The link to the online forms can be found at Dept. of Commerce & Consumer Affairs Business Action Center:  http://www.hawaii.gov/dcca/areas/bac.  Click on the link to “Hawaii Business Express” on the ride sidebar, then create an account.  Once you have an account, log in and click on “Quickfile” and choose the LLC-1 form.  Follow the instructions for online submission, paying by credit card.

6.  Prepare Operating Agreement.  (Attorney assistance strongly advised) This is the document that governs operations of the LLC

7.  Prepare organizational minutes/resolutions, if desired (optional)

8.  Prepare Certificates of Ownership, if desired (optional)

9.  Obtain Employee Identification Number (EIN) (Attorney or CPA input desirable)Fill out and file a Form SS-4 with the IRS to obtain this numberThis Form may be filled out and filed online: https://sa.www4.irs.gov/sa_vign/newFormSS4.do

10.  Obtain State General Excise Tax License Number from the Dept.of Taxation. You can go into one of the offices, or obtain the GET license application (form BB-1) through the Department of Taxation website:  http://www.state.hi.us/tax/.  You can also apply online through the Hawaii Business Express as part of step 5, above.