How is an LLC taxed in Hawaii?

State Business Tax By default, LLCs themselves do not pay income taxes, only their members do. Unlike the default pass-through tax situation, when an LLC elects to be taxed as a corporation, the company itself must file a separate tax return. The State of Hawaii, like almost every other state, taxes corporation income.

Why would you choose a corporation over an LLC?

One of the advantages an LLC has over a corporation is that in many states, a creditor cannot collect a member’s dividends, whereas in a corporation dividends can be collected from shareholders. If there is more than one member, the LLC must file a business tax return as if it was a C-corp or S-corp tax entity.

Do Sole proprietors need a business license in Hawaii?

There isn’t a requirement in Hawaii for sole proprietors to acquire a general business license, but depending on the nature of your business you may need other licenses and/or permits to operate in a compliant fashion.

Who pays general excise tax in Hawaii?

1. What is the general excise tax (GET)? The GET is a privilege tax imposed on business activity in the State of Hawaii. The tax is imposed on the gross income received by the person engaging in the business activity.

How big does a Hawaii limited liability company have to be?

Document pages must be standard letter-sized (8.5 x 11 inches) and if signatures are not plainly legible, the name must be typed below each signature. Make checks payable to the DEPARTMENT OF COMMERCE AND CONSUMER AFFAIRS, for the exact amount.

How to apply for domestic limited liability company in Hawaii?

Paper filings of the Application must be typewritten or printed and signed in BLACK INK and are accepted at our service window, and via email, mail and fax. Legible scanned, photocopied, or faxed documents will be accepted.

Which is better a LLC or a corporation?

An LLC can be seen as a sole proprietor / partnership, or as a C-corp, or as an S-corp (there is no true LLC tax entity and so an LLC is seen as one of the traditional business designations instead). In this sense, an LLC has greater flexibility and can choose the tax identity that most benefits its members.

How to register as a business in Hawaii?

All business entities (except sole proprietorships) must register to do business in Hawaii. You may also: Apply for a professional or vocational license; Register your trade name (or “doing business as” (DBA) name); and Register your trademarks and service marks.