Hawaii is the 50th and most recent state to have joined the United States of America, having received statehood on August 21, 1959. Hawaii is the only U.S. state located in Oceania and the only one composed entirely of islands. It is the northernmost island group in Polynesia, occupying most of an archipelago in the central Pacific Ocean. Hawaii is the only U.S. state located outside North America.
Tourism is the top industry in the state of Hawaii. Centrally located between the U.S. and Japan, Hawaii entertains tourists from around the world. People visit the state to enjoy the vast beaches and pleasant climate.
Each year, Hawaii forms over 7,500 new LLCs. Hawaii has over 31,000 active LLCs. The U.S. Chamber of Commerce ranks Hawaii as the fifth best state for per capita income growth, and the seventh best state for long-term job growth.
A Hawaii LLC offers business entrepreneurs the form of corporate organization that provides perhaps the most flexibility to you. An LLC formation, like the alternative corporate forms of organization like a limited partnership or a Subchapter S Corporation, are generally prime candidates for a start-up business. The state of Hawaii gives public support to an Hawaii LLC.
Advantages of a Hawaii LLC
– Owners of a LLC have the limited liability protection of a corporation. Creditors, typically, cannot hold members personally responsible for the debts and liabilities of the business. Members can only be liable to the extent of their business investment;
– Limited liability companies can select varying forms of distribution of profits. Unlike a common partnership where the split is 50-50, LLC have much more flexibility;
– Corporations are required to keep formal minutes, have meetings, and record resolutions. The LLC business structure requires no corporate minutes or resolutions and is easier to operate;
– All your business losses, profits, and expenses flow through the company to the individual members. For Americans who file a personal US tax return, these profits are added to their ordinary income and taxed at the individual rate. The advantage for non-Americans who do not file a U.S. tax return is that the LLC’s profits pass through to LLC’s owner but the income is not taxed by the U.S. Of course, if you feel it is necessary to report the LLC’s income in your home country, you are able to do so. However, ownership in a Hawaii LLC is completely private and is never disclosed;
– Registering a company as an LLC adds credibility to a business, and can help in brand building and marketing to potential clients and suppliers. In addition, the company can enter into contracts on its own, and also acquire property;