Overview of LLC Taxation in Hawaii
An LLC in Hawaii is subject to a 4% General Excise Tax on all sales. Additionally, an LLC classified as a corporation faces a Hawaii corporate income tax rate ranging from 4.40% to 6.40%. Those with revenue exceeding $100,000 must pay a 6.4% income tax.
Registration and Compliance for Hawaii LLCs
LLCs in Hawaii need to pay state excise tax and potentially other taxes based on their business operations. Registration involves a $50 fee with the Hawaii Department of Commerce, along with a $1 State Archives fee. LLCs organized outside Hawaii must register with the state and appoint an in-state registered agent.
Tax Considerations and Process in Hawaii
LLCs in Hawaii are pass-through entities, and members who receive profits are subject to a 15.3% self-employment tax. Processing Articles of Organization can vary from 3-5 days online to 7-10 days by mail.
Additional Information on Hawaii LLCs
Hawaii does not have a sales tax but implements a General Excise Tax. The state ranks 41st in overall tax competitiveness. LLC owners should be conscious of the tax implications and benefits of forming an LLC in Hawaii.