Summary
The fact that you may need to register with state agencies like Hawaii Business Express is a sneaky misconception that many folks miss.
However, with the rise of remote work, states have begun cracking down and levying penalties for those who (unknowingly) fail to register.
If you're considering operating in Hawaii, use this guide to:
- Explore the that triggers the need to register with the Hawaii Business Express, including criteria such as physical presence, economic activity, and advertising efforts.
- Determine where and how to register with the Hawaii Business Express.
- Understand additional requirements such as Registered Agents, registration with other state departments, and ongoing annual reports.
What criteria would trigger the requirement to register with the Hawaii Business Express?
** What's considered doing business:** Hawaii considers a business to be "doing business" in the state if it engages in activities with the goal of making a profit or economic gain. This includes:
- Physical Presence: Maintaining an office, store, warehouse, or other physical location in Hawaii.
- Employees: Hiring employees based in Hawaii.
- Regular Business Activity: Regularly selling goods or services, or engaging in other income-generating activities within the state.
- Income in Hawaii: Deriving significant revenue from customers or clients located in Hawaii.
** What's NOT considered doing business:** Things that Hawaii might NOT consider as "doing business":
- Casual Sales: Infrequent or isolated transactions without the goal of continuous profit.
- Investments: Simply owning property or investments in Hawaii.
- Defending Lawsuits: Participating in legal proceedings within the state.
Where do I register, and what else is required?
- A Certificate of Good Standing is required (dated within the past 60 days)
In addition:
A Registered Agent is required to serve as the company's physical in-state presence to receive important legal documents. Do not fall victim to the common misconception that you can leverage an in-state employee as your Registered Agent. It's far too risky.
You'll want to review the other registrations required in Hawaii. Here's a Hawaii specific guide we put together.
What is the registration fee?
The fee charged by Hawaii is $51.
How long does Hawaii usually take to process?
Hawaii usually takes approximately 1 - 2 weeks to process registrations.
What is required ongoing?
Each state has a complex schedule of required annual reports, which can vary by entity type. Let's take a look at Hawaii's:
C-Corporation
- Filing Date: By the end of the quarter in which it was incorporated
- Filing Frequency: Annual
LLC
- Filing Date: By the end of the quarter in which it was incorporated
- Filing Frequency: Annual
Non-Profit
- Filing Date: By the end of the quarter in which it was incorporated
- Filing Frequency: Annual
There is an Easier Way
Automate registration and annual report tracking in AbstractOps.This guide should definitely help reduce some of the confusion for Hawaii. However, if you have multiple states to worry about, you may look to:
Automate state registrations and annual reports
Centralize email, snail mail, state ID’s, and registered agents, and
Take control of action items, eliminating risks before they become penalties.
Start the AbstractOps product demo to see how easy this can be.
Note: For the avoidance of doubt, nothing provided here shall contemplate, constitute or include tax or legal advice. Always double check with state agency websites for the most up-to-date requirements.
