Articles Of Organization: Important Documents For Hawaii Businesses

If you have a business idea and are thinking of starting your own company, you have to decide early on which business entity structure you will register so you can complete the articles of organization. Your choice will determine the management, administration, taxation, and reporting requirements of your business For many new entrepreneurs, the obvious option is the limited liability company (LLC). There are many reasons why it is something you have to consider.

People often see it as a hybrid structure. That is because it allows you to enjoy liability protection just like a corporation. The members, which is what the owners are called, have no personal liability for the company’s debts and actions. At the same time, you can get pass-through taxation. The default tax treatment for this structure is similar to a partnership or sole proprietorship.

Hawaii LLC

This business entity structure provides flexibility in many aspects. There is no need to appoint officers and establish a board of directors. You can select how you will distribute the company’s profits. LLCs have no obligation to hold meetings and record minutes of the meeting. However, keeping accurate records is advisable and can help prevent issues.

The state also offers various programs and incentives for LLCs. Those include the Enterprise Zones Partnership Program, foreign trade zone, HUBZone, workforce training funds for employers, and High Technology Business Investment Tax Credit. Check state agencies to find out if you qualify for any of them and what requirements you need to apply.

Setting Up Your Business

While Hawaii LLCs enjoy a certain level of flexibility, you still have to follow state laws and regulations when it comes to forming a business. That means that you will have to file formal paperwork, such as the Articles of Organization.

The filing of this paperwork will officially create your company. Submit a completed form to the Department of Commerce and Consumer Affairs and pay the $50 filing fee. You can send the document to the following address:

Department of Commerce and Consumer Affairs
Business Registration Division
335 Merchant Street
P.O. Box 40
Honolulu, Hawaii

What You Need For The Articles Of Organization

In filling out the Articles of Organization, you have to provide the following information:

• Business Entity Name – Write the exact name you want for your company. Include your preferred capitalization. You can use a comma if you want.

However, you have to make sure that your company name complies with the naming guidelines of the state. Use a proper designator. You can opt for the phrase “Limited Liability Company” or any of its abbreviations. Do not use any term that can imply affiliation or confuse your company with a government agency. Unless you get permission from the state, you cannot use the following words:

• • Financial Institution
  • Financial Services Loan Company
  • Bank
  • Banker
  • Banking
  • Savings Bank
  • Savings Association
  • Savings And Loan
  • International Banking Corporation
  • Intrapacific Bank
  • Credit Union
  • Trust
  • Trust Company

Additionally, you should make sure that your company name is distinguishable. That means no other entity in Hawaii is using a similar name. You can check if your company name is still available by conducting a name search on the records of the state.

If the Department of Commerce and Consumer Affairs deems your LLC name unavailable or unacceptable, it will reject your Articles of Organization.

• Principal Office Mailing Address – The state needs to know where your principal office is located. Enter the initial mailing address of your company’s principal office. You can use any street address, including a home address, an office address, or that of a friend or a family member. However, you cannot use a P.O. box.
• Name And Address Of Your Registered Agent – The state requires all LLCs to have a registered agent. They will serve as the middleman between your company and the state. They will receive all the important legal, compliance, and tax documents on behalf of your company. Make sure the agent agrees to the appointment. You can choose an individual or a company. Read this article to find out the qualifications in Hawaii.
  • If you nominate an individual:
    • Write the first and last name of the agent.
    • Choose “individual” for the agent type.
    • Indicate their street address in Hawaii.
  • If you appoint a third-party organization:
    • Write the name of the organization.
    • Choose “entity” for the agent type.
    • Select their state of incorporation.
    • Input their street address.
• Information About The Organizer – An individual or a business entity can serve as your organizer. However, it cannot be the company itself. Write the address of the organizer in the appropriate section. You can have more than one organizer if you want as long as you list them on the form.
• Period Of Duration – You have to inform the state how long your company will remain in existence. You can choose at-will if you want the duration to be indefinite. If you want to automatically shut the company down after a certain period, enter the specific date.
• Management Structure – Hawaii allows LLCs to choose their management structure. You can either be a member-managed or a manager-managed LLC. Make sure you select the right option.
  • If you choose manager-managed, you must do both of the following:
    • Write the number of initial members
    • List the names and addresses of all managers.
  • If you opt to be member-managed:
    • List the names and addresses of all members.
• Liability – You have to inform the state if the members will be liable for the debts and obligations that the company may incur.
• Authorized Signature – The organizer should sign the form.

After submitting the document, you have to ensure compliance with various obligations. These may include additional paperwork. Among those you may need are an Employer Identification Number (EIN), an operating agreement, and other business licenses. To find out more about the registration process, check out this article.

Need Help?

The formation documents are only some of the requirements to start a Hawaii LLC. You will have to go through multiple steps to finish the whole ordeal. If you need help in handling the process, contact DoMyLLC.