Can I Set Up an S Corp in Hawaii Myself?
If you plan to start a business in Hawaii, choosing how to structure it doesn’t have to be complicated. By forming an S corporation (S corp) in Hawaii, you can save money in taxes and enjoy other operational benefits. This guide also shares tips to help you ensure your business complies with all state laws and guidelines.
Factors to Consider Before Starting an S Corp in Hawaii
After you have decided on the idea to start an S-Corp in Hawaii, deciding the name for your corporation is significant. Legal procedures should be taken into account when choosing your partnership name.
Choose a business name that will enable you to develop a strong brand identity. If you want to set up an S-Corp, there is a complete guide on Hawaii Business Name Search for a proper business name. Here are some guidelines you must follow while naming your S-corp. Avoid profanities.
Steps to Start a Hawaii S Corp
- Choose a unique business name.
- Avoid profanities.
- File your business online and elect an S Corp status at the same time.
How much does it cost to start an S Corp? The filing fee will vary by state, may be a set fee, and may be calculated based on the authorized number of shares. The SOS will typically charge between $100 and $250 for filing and administrative fees.
The time it takes to incorporate an S Corp in Hawaii varies based on several factors, including how quickly the state processes your Articles of Incorporation. The corporate tax rate for an S Corporation in Hawaii is 6.4%.
Additionally, an S Corp provides limited liability protection for its shareholders, meaning that their personal assets are separate from those of the company. Bylaws are a set of rules that govern how your company operates, including details on shareholder meetings and voting procedures.
Key Points of S Corporation in Hawaii
An S corporation is a corporation or LLC that elects the Federal tax classification with the IRS. S corp status does not affect the business structure, whether a corporation or LLC. Eligible corporations and LLCs can elect S corp status by filing IRS Form 2553.
How to Start an S-Corp in Hawaii
Follow along with our simple step-by-step instructions on how to start a business in Hawaii from start to finish.
Steps to Electing S-Corp Status
By default, your new corporation will be designated a C corp. Once you’ve met the requirements for an S corp, you can fill out the necessary paperwork to gain S corporation status. Most states will offer an articles of incorporation form, which can be acquired from the local secretary of state’s office.