Tax Deductible Expenses for an LLC in Hawaii
Tax-deductible expenses for an LLC in Hawaii include medical expenses, home mortgage interest, and charity gifts. The standard deduction amount depends on your filing status. For instance, the standard deduction for a single taxpayer is $2,200.
Business Registration and Formalities for LLCs in Hawaii
LLCs in Hawaii must file annual reports to maintain good standing, which can be done online for $12.50. Failing to file on time incurs a $10 penalty, though delayed filings might cause more serious consequences like dissolution.
Taxation and Compliance for Hawaii LLCs
How are LLCs taxed in Hawaii? All Hawaii LLCs must report a 4% General Excise Tax on all sales.
By default, a Hawaii LLC is taxed by the Internal Revenue Service (IRS) based on the number of Members the LLC has. An LLC with 1 owner (Single-Member LLC) is taxed like a Sole Proprietorship.
LLCs in Hawaii are required to pay state excise tax and can be subject to other taxes based on their business activities.
All members of an LLC who take profits out of that LLC must pay self-employment tax as well. The current self-employment tax rate in Hawaii is 15.3%.
How Do State Taxes In Hawaii Fare Compared To Other States: Hawaii currently has a 4% state tax rate.
All Hawaii businesses must file a GET return, even without profits. If your annual GET liability exceeds $4,000, you must file electronically. Otherwise, submit your return and payment by mail.
Withhold payroll taxes from employees and transfer them to the relevant agency. Property tax varies by county from 0.27%. Self-employed persons also pay self-employment tax.
You have sales tax nexus in Hawaii once you hit $100,000 in sales or 200 transactions. Register for a sales tax permit through the Department of Revenue website.
For sales tax needs, contact the Hawaii Department of Taxation. They allow local jurisdictions to collect an extra 0.5% sales tax. Honolulu does not collect this. Some businesses are exempt. The state collects 4% from businesses.