How to Form a Company in Hawaii

Introduction

Forming a company in Hawaii is easy and takes less than 30 minutes. You’ll need to choose your company’s structure, name it, file the articles of incorporation with the state, create bylaws for the company, obtain a business license from the county and state, and then do some paperwork.

Determine your company’s structure.

Now that you have determined the type of business structure that is right for your company, it’s time to determine your company’s name.

If you’re opening a sole proprietorship, the name of your business should be the same as your personal or legal name. For example: Jane Doe opens a new food truck business called “Jane’s Delicious Pizza.” In this case, Jane Doe will be considered her own entity (sole proprietorship) and therefore must use her own personal or legal name in place of an official company name.

If you’re opening a partnership with another person or persons (i.e., two people are starting up together), then both partners need to come up with a single shared name for their business venture—one partner cannot use their own personal/legal names without consent from the other partner(s). This is also true if multiple people from different organizations want to start doing business together as one unit; they’ll need one single shared name between them all.

Choose a name for your company.

Once you’ve chosen your business type, the next step is to choose a name for your company. Use this step as an opportunity to ensure that your business name is:

• Not already in use by another company
• Easy to spell and pronounce (makes it easier for customers)
• Not too similar to another company’s name (this could lead to confusion among consumers)
• Not too broad or general in nature (for example, if you are starting a bakery firm called “Baked Goods and Treats,” then “Bakery” would be a more appropriate title than “Donuts & Fries.”)

File the Articles of Incorporation with the state.

Now that you know the basics, it’s time to file your articles of incorporation. (If you’re confused about what an article is, don’t worry—we’ll explain.) To do this, you’ll need to visit the Corporation Commission and fill out a form. The commission will charge a small fee for filing; however, if you are creating a nonprofit corporation in Hawaii, then there are no fees associated with submitting your articles.

After filing your paperwork with the state, it should take about 40 days for them to process everything and approve your company as official in Hawaii. When they do so, they’ll send back proof that your company has been incorporated in Hawaii and a Certificate of Existence which indicates that they’ve successfully registered your business name with the state government

Create bylaws for the company.

• What are bylaws?
• Why you need bylaws.

Bylaws are rules and regulations that establish a company’s internal operations and policies. They are legally binding documents that must be filed with the state, so it’s important to get them right. It’s also important to comply with all state laws, which may require certain actions or restrictions set forth in your bylaws.

If you’re setting up your own company, you’ll have to create proper bylaws for your business as part of the incorporation process. If someone else is managing this for you (such as an attorney), they’ll likely create the initial drafts based on information provided by you and their experience with similar businesses. It should include things like:

• Who can run meetings; where they must be held; how often they occur; how long they last; etc…
• Whether shareholders have voting rights; what types of votes require quorum; what happens if quorum isn’t achieved?
• How many employees can be hired at once? How many leave without notice per month? What happens when someone gets fired? And so on…

Obtain a business license from the county and state.

A business license is a license issued by a local county/city government that allows you to legally operate your business in their jurisdiction. Before applying for one, you must determine what type of license you need:

• Sole Proprietorship: A sole proprietorship is one owned by one person and doesn’t have any partners or shareholders. A sole proprietor generally has no legal obligation to file taxes as an individual; however, they may be required to file as self-employed if they have employees or are selling something online (more on this later).
• Limited Liability Company (LLC): An LLC can be operated with the same ease as a corporation but offers greater protection against debt than a general partnership would—the owners aren’t personally liable for debts incurred from the company’s actions. The biggest drawback here is that adding new members can be difficult without going through a formal process called “membership interest.” Also note that LLCs are not allowed under certain occupations such as attorney or real estate broker since those professions require holding public office licenses in Hawaii (more on this later).
• Corporation: Corporations offer limited liability for its shareholders so that if it gets sued after making some bad business decisions, only their money will get taken away from them instead of their personal assets like homes and cars being seized like they would if they were sole proprietorships or limited liability companies.*Joint Venture*: This type requires less paperwork than forming an LLC but doesn’t offer protection against potential lawsuits like other types do either; however, joint ventures don’t require annual filings with state agencies either so it could save some time when filing taxes each year.*Sole Proprietorship*: If you’re just starting out then this might be best because there’s no need for paperwork fees upfront!

Takeaway:

You’ve finished reading the article, and you’re ready to launch your new business. But before you do, here are some key points to remember:

• You need a business plan before you start the process of forming a company.
• Get your employees trained in basic safety procedures and proper job performance.
• Develop effective marketing strategies for your business.

Conclusion

When you’re ready to set up your own business in Hawaii, be sure to keep all the above considerations in mind. Not only will this help you choose the right name for your company and make sure it’s legally compliant, but it will also help you get started on the right foot as you go about registering with the state and county governments. Just remember that these steps can take some time—so don’t rush yourself!