Annual Filing Requirements for Hawaii LLC

Learn about the annual report and tax filing procedures for Hawaii limited liability companies.

To establish and operate a Hawaii limited liability corporation (LLC), you must prepare and submit a number of paperwork with the state. This article discusses the most significant Hawaii LLC continuous reporting and state tax filing obligations.

Report Annual

The state of Hawaii requires you to submit an annual report for your limited liability company. You may submit your annual report either online or by mail via the BREG website. Your LLC will get an annual report reminder from the state. The annual report is due during the calendar quarter following the anniversary month of the creation of your LLC. If your LLC was founded on July 15, for example, your report would be required each year between July 1 and—at the very least—September 30. The filing cost is now $15.

State Corporation Tax

Most LLCs are pass-through tax corporations when it comes to income taxes. In other words, the burden for paying federal income taxes is passed via the LLC to the individual LLC members. LLCs do not pay income taxes by default; only its members do. Some states charge LLCs a separate tax or fee for the privilege of conducting business in their jurisdiction. Hawaii, on the other hand, is not one of those states.

However, in certain situations, the owners of an LLC elect to have their firm taxed as if it were a corporation. This decision is made by submitting IRS Form 2553 to the IRS. (The form is available on the IRS website.) When an LLC elects to be taxed as a corporation rather than as a pass-through entity, the firm must submit a separate tax return. Corporation income is taxed in Hawaii, as it is in practically every other state. The company income tax is levied at a low set of marginal rates, which now range from 4.4% to 6.4%. The tax is due to the Department of Taxation in the state (DOT). To pay the tax, use the state’s company income tax return (Form N-30).

Employer Taxes in the State

Do you have workers in your LLC? If this is the case, you must pay employer taxes. Some of these taxes are paid to the federal government (the IRS) and are not addressed in this section. (However, it is important to understand that federal employer tax duties begin with getting a federal employer identification number (EIN).) Employers in Hawaii, on the other hand, must pay state taxes.

To begin, you must withhold and remit employee income taxes to the Department of Taxation. Begin by registering your company with the DOT, either online through Hawaii Business Express or on paper (Form BB-1; submit with a one-time $20 licensing fee). After registering, you must submit withholding taxes on a regular basis (for example, monthly) using Forms HW-14 and VP-1. Each year, you’ll also need to utilize Form HW-3 to balance your LLC’s tax withholding.

You’ll also need to register to pay state unemployment insurance (UI) taxes. The Department of Labor and Industrial Relations in Hawaii is in charge of these taxes (DOL). These taxes may be registered for online or by utilizing Form BB-1. Then, each quarter, utilize Forms UC-B6 and UC-B6A to report salaries and pay UI taxes online via Hawaii Unemployment Insurance (HUI) Express.

Taxes on General Excise and Use

If your LLC sells items to clients in Hawaii, you must collect and remit the general excise tax (GET; essentially a sales tax). This implies you’ll have to register with the Department of Taxation for this reason and then make periodic GET payments for items sold. You may register online with Hawaii Business Express or by mail with Form BB-1. After registering, you will get a GET license. Then, on a monthly, quarterly, or semiannual basis, you must file excise tax reports to the DOT.

Other States Registration

If you want to do business in places other than Hawaii, your LLC may need to be registered in any or all of those states. The exact states concerned will determine if you are needed to register: each state has its own regulations for what defines conducting business and whether registration is required. For registration reasons, having a physical presence (a business location) in a state, recruiting personnel in a state, or soliciting business in a state (through telephone, print advertisements, mail, or the Internet) are sometimes considered conducting business. Obtaining a certificate of authority or comparable document is normally required for registration.