Hawaii LLC, Corporation, and DBA Startup Guide

Hawaii Business Facts and Environment

Hawaii Business Facts

Tourism leads Hawaii’s economy, ahead of Services, Taxation, and Labor as other leading industries. Hawaii is known for its beautiful beaches covered in exquisitely colored sands. Whether you like hiking, biking, kayaking, sailing, swimming, or just sitting on the beach, Hawaii has something to offer almost anyone.

Major Companies Headquartered in Hawaii

Hawaii is the headquarters of many major companies including Queen’s Health Systems Inc., Hawaii Pacific Health, Hawaiian Holdings, HSTA, and the State of Hawaii.

Startup Environment

There has been significant growth in the number of Hawaiian startup companies in the past three years. Funding and revenues also expanded. Hawaii’s startups including water, food, and energy are slowly becoming global leaders.

Hawaii LLCs, Corporations, and DBAs

Step 1: Decide on a Business Structure

There are 3 basic options: a DBA, a Corporation, or an LLC. Click here to learn more about business entities.

• A DBA or “Doing Business As” (also known as a “Fictitious Business Name” or FBN) is not really a separate structure, but just a different name that an individual or partners use as their business name.
• A Corporation is a separate entity (provides liability protection to the owners) that has a structure that includes shareholders, directors and officers. More complex than a DBA but the entity of choice for large companies and startups that intend to raise funding. Some professions are required to choose what is known as a “Professional Corporation” or PC (doctors, lawyers, architects, etc.).
• An LLC or “Limited Liability Company” is a newer type of business that is both a separate entity but provides very easy management (doesn’t require directors or officers) and taxation. Has largely replaced the DBA and Corporation in popularity recently as it provides liability protection but with much less complexity (and taxation) than a Corporation.

Step 2: Pick a Business Name

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can change your business name, but it usually saves time and money if you can stick with the original name). In Step 3 we’ll show you how to search for the name in Hawaii, but we highly recommend you do the following before searching Hawaii state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
• Make sure your company name choice is available by searching the Hawaii Business Entity Database and doing a name search on the State of Hawaii website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

NOTE: Familiarize yourself with the Hawaii naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on Hawaii Business Name & Business Purpose

• The following terms must not be used unless one has the authorization from the commissioner of financial institutions: “financial institution”, “bank”, “banker”, “banking”, “banc”, “savings bank”, “savings and loan”, “savings association”, “financial services loan company”, “credit union”, “trust company”, “intrapacific bank”, “international banking corporation”, or “trust.”
• The following terms must not be used without the approval of the Olympic Committee: “Olympic”, “Olympiad”, “Citius Altius Fortius”, or the Olympic ring symbol.
• The following terms should not also be used: “Postal Service” or “Post Office”
• The term “insurance” shall be used by domestic insurance companies and the last word thereof shall be “corporation”, “incorporated”, “limited”, or one of the abbreviations “corp.”, “inc.”, or “ltd.”

Step 3: Register the Business

Choosing a business name is easier said than done – many legal and business problems can arise from picking the wrong name (you can always change it later but the less times you have to do that the better). In Step 3 we’ll show you how to search for the name in Hawaii, but we highly recommend you do the following before searching Hawaii state databases:

• Make sure you’ve covered the basics: unique, easy to understand/pronounce (practice saying it out loud: “Thanks for calling XYZ”) and can survive over time (“DVD World” is not timely). Here are some of our tips on business identity including logo and trademarks.
• Search the web for your proposed name. Search Google, Bing and DuckDuckGo as a “first sweep” for any potential conflicts, especially in your state or local jurisdiction. NOTE: If you intend to operate nationally or even internationally it will be even more important that your name be unique. This should cover many cases where a company name is being used but not officially trademarked (see next tip).
• Make sure your company name choice is available by searching the Hawaii Business Entity Database and doing a name search on the State of Hawaii website. NOTE: Make sure to search variations of spelling, plurals and misspellings as the state may reject a name that is too similar (then you have to start all over again, wasting valuable time).

NOTE: Familiarize yourself with the Hawaii naming guidelines. LLC entity names need to contain the words Limited Liability Company or the abbreviation LLC, and certain words are restricted or prohibited.

Restrictions on Hawaii Business Name & Business Purpose

• The following terms must not be used unless one has the authorization from the commissioner of financial institutions: “financial institution”, “bank”, “banker”, “banking”, “banc”, “savings bank”, “savings and loan”, “savings association”, “financial services loan company”, “credit union”, “trust company”, “intrapacific bank”, “international banking corporation”, or “trust.”
• The following terms must not be used without the approval of the Olympic Committee: “Olympic”, “Olympiad”, “Citius Altius Fortius”, or the Olympic ring symbol.
• The following terms should not also be used: “Postal Service” or “Post Office”
• The term “insurance” shall be used by domestic insurance companies and the last word thereof shall be “corporation”, “incorporated”, “limited”, or one of the abbreviations “corp.”, “inc.”, or “ltd.”

Ready to Start Now? Let Us Do The Work

Sure, you could do all the steps above or you could spend 5-10 minutes on our order form and let us take care of it while you work on more important things.

• Find out more about MyCompanyWorks’ fast business filing services
• Read our verified reviews and 100% Satisfaction Guarantee
• Contact our friendly support team if you have any questions

Step 4: Obtain Your Federal Employer Identification Number

Your EIN is like your Social Security Number for your company. It’s required for Corporations and LLCs and optional for DBA’s (if you don’t have any employees, then it’s required). However, if you are a DBA and don’t obtain an EIN you will be forced to use your Social Security Number on many documents so it’s typically recommended you obtain the EIN to prevent identity theft.

To obtain an EIN you can apply online with the IRS or via IRS Form SS-4.

TIP: We will obtain your EIN for you if we form your company.

Step 5: Open Company Bank and Credit Accounts

To keep business and personal expenses separate, you should open a separate account for your business. In addition, getting business credit cards is how you begin to build a company credit profile (corporation or LLC required) and can later qualify for larger loans and lines of credit. To open the account simply call your chosen bank, then ask about the steps to open a business bank account. Typically you’ll need a) your filed paperwork, b) your EIN, and c) a company resolution authorizing your company to open the account (signed by the owners, members, officers or directors, etc.).

Top 5 Major Banks in Hawaii

• Bank of Hawaii
• First Hawaiian Bank
• American Savings Bank
• Central Pacific Bank
• Territorial Savings Bank

Click here to view a list of our recommended banks in our Vendor Network.

TIP: Our business formation service includes a free banking resolution for your use.

Step 6: Set-up An Accounting System

Setup your Accounting and Record-keeping system and learn about the taxes your new company is responsible for paying.

Company documents generally are required to be kept for 3 years, including a list of all owners and addresses, copies of all formation documents, financial statements, annual reports, amendments, or changes to the company. All Tax and Corporate Filings should be kept for at least 3 years. View our “Accounting & Financial Management” section for help with setting up an accounting system and purchasing accounting software.

Review our list of Accountants, Accounting Software, and Bookkeepers in our Vendor Network.

Step 7: Obtain Licenses and Permits

Now that you’ve registered your business name you need to obtain a business license for your company – this authorizes your company to do business in your city or county. Typically this also involves registering for state taxes and permits (the city may require them as part of the business licensing process).

TIP: We work with a company that can obtain and prepare business licenses and permits for you. Click here to learn more.

Step 8: Hire Employees (if applicable)

If you intend to hire yourself or others as a full or part-time employee of your company, then you may have to register with the appropriate State Agencies or obtain Workers Compensation Insurance or Unemployment Insurance (or both). View our “Employees & Payroll” section for help with hiring employees and processing payroll.

Review our list of recommended Payroll Providers in our Vendor Network.

Step 9: Obtain Business Insurance

There are many types of insurance for businesses but they are usually packaged as “General Business Insurance” or a “Business Owner’s Policy”. This can cover everything from product liability to company vehicles. A decent policy can run as little as $300/year and offers a great extra level of protection.

Click here to view our list of insurance providers in our Vendor Network.

Step 10: Systemize and Organize

Prepare the business as if someone needed to take it over and run it for you. All businesses need a system to do things like process orders, pay bills, pay employees, pay taxes, maintain your permits, etc. Basically, try to make the operational aspect of the business as automated and efficient as possible so you can concentrate on growing your business. View our “Manage Your Company” section for help with systemizing and automating your business.

Step 11: Branding and Marketing

Now that you’ve set up the company for success, you need to get the word out. Create a marketing plan for your products and services that targets your ideal customer. View our “Marketing & Sales” section for help for more information.

Step 12: Annual and Ongoing Requirements

DBA: Your Fictitious Business Name should be valid for 5 years (unless you change the company name or other information listed on the FBN) at which point you’ll need to renew it with the county.

LLC: Hawaii corporations are required to file a Periodic Report with the Hawaii Secretary of State by the end of the filing anniversary quarter each year, in addition to general taxation. Information on your business’ taxes can be found here.

Corporation: Businesses in Hawaii should file a report with the Secretary of State of Hawaii by the end of the filing anniversary quarter each year. LLCs and Corporations will pay a filing cost of $18.

Click here to view our MyCompanyWorks Premium™ service which can automate most of your ongoing compliance tasks.

Important Hawaii Contacts

Business Registration Division, Department of Commerce & Consumer Affairs

Business Development and Support Division (for Corporation and LLC filings)
No. 1 Capitol District Building
250 South Hotel Street
Honolulu, HI 96813
Phone: (808) 587-2750

Hawaii Taxation Departments

• Hawaii Department of Taxation

Hawaii Labor and Employment Departments

• Department of Labor and Industrial Relations

Hawaii Startup Resources

1. Small Business Administration (SBA) Hawaii District Offices

• Hawaii District Office

2. SCORE Hawaii

• SCORE Hawaii serves and helps businesses for over 50 years by providing free and confidential business advice and counseling tailored to meet the needs of your business and your personal objectives.

3. Hawaii Legal Statutes

• Hawaii Business Corporation Act – note this is the broad code that includes various other topics including business corporation.
• Hawaii Revised Uniform Limited Liability Company Act – the specific act that applies to Hawaii LLC’s.
• Hawaii Revised Statutes on Professions and Occupations – this includes regulations on Hawaii’s professions and businesses

4. Hawaii Chambers of Commerce

• Hawaii Island Chamber of Commerce
• Chinese Chamber of Commerce of Hawaii
• Oahu Hawaii Chamber of Commerce
• Hawaii Kai Chamber of Commerce

5. Chamber of Commerce Hawaii

• As the “Voice of Business” in Hawaii, the Chamber of Commerce Hawaii is a statewide, non-profit organization whose mission is to serve as the advocate for business in Hawaii.

6. Hawaii Angel Investors

• List of Angel Investors in Hawaii

7. Hawaii Business News

• Hawaii Business Magazine
• Pacific Business News

8. DBEDT

• The Department of Business, Economic Development & Tourism is Hawaii’s resource center for economic and statistical data, business development opportunities, energy and conservation information, and foreign trade advantages.

9. Hawaii Small Business Development Center

• The Hawaii Small Business Development Center provides professional business advice, research and training to business owners and new entrepreneurs in order to promote growth, innovation, productivity and management improvement.  

10. Hawaii Green Business Program

• The Hawaii Green Business Program (HGBP) is a Free State program that assists and recognizes businesses that strive to operate in an environmentally and socially responsible manner.