StructureCost2026

Hawaii: what each business structure costs a year

At $100,000 profit, an LLC taxed as an S corp costs $3,660 a year less than a sole proprietorship in Hawaii. All figures are 2026 tax and fees.

$3,660 a year

less as an LLC taxed as an S corp than as a sole proprietorship in Hawaii, at these numbers. That includes the state's pass-through entity tax election.

More settings revenue, salary, filing status, payroll costs, PTET

Hawaii, 2026: $100,000 profit, single filer

StructureYearly costvs yoursTo set up
Sole proprietorship yours $31,372 $0
Itemized: $31,372
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$6,000
Self-employment taxirs.gov, 2026 rates$13,282
Federal income taxirs.gov, 2026 rates$7,254
State income taxfiles.hawaii.gov, checked Oct 20, 2026$4,836
Yearly cost$31,372
Single-member LLC $31,380 +$8 $50
Itemized: $31,380
Annual Reportcca.hawaii.gov, checked Oct 20, 2026$15
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$6,000
Self-employment taxirs.gov, 2026 rates$13,280
Federal income taxirs.gov, 2026 rates$7,251
State income taxfiles.hawaii.gov, checked Oct 20, 2026$4,834
Yearly cost$31,380
LLC taxed as an S corp lowest $27,712 −$3,660 $50
Itemized: $27,712
Annual Reportcca.hawaii.gov, checked Oct 20, 2026$15
Payroll tax on your salaryirs.gov, 2026 rates$7,126
State disability and paid leavelabor.hawaii.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$1,800
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$6,000
Hawaii pass-through entity tax, paid by the company (elected)files.hawaii.gov, checked Oct 20, 2026$4,331
Federal income taxirs.gov, 2026 rates$7,677
State income tax, after the PTET creditfiles.hawaii.gov, checked Oct 20, 2026$563
Yearly cost$27,712
S corporation $27,712 −$3,660 $50
Itemized: $27,712
Annual Reportcca.hawaii.gov, checked Oct 20, 2026$15
Payroll tax on your salaryirs.gov, 2026 rates$7,126
State disability and paid leavelabor.hawaii.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$1,800
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$6,000
Hawaii pass-through entity tax, paid by the company (elected)files.hawaii.gov, checked Oct 20, 2026$4,331
Federal income taxirs.gov, 2026 rates$7,677
State income tax, after the PTET creditfiles.hawaii.gov, checked Oct 20, 2026$563
Yearly cost$27,712
C corporation $35,413 +$4,041 $50
Itemized: $35,413
Annual Reportcca.hawaii.gov, checked Oct 20, 2026$15
Payroll tax on your salaryirs.gov, 2026 rates$7,126
State disability and paid leavelabor.hawaii.gov, checked Oct 20, 2026$200
Payroll service and tax return (estimate)$2,000
Hawaii general excise tax (GET)tax.hawaii.gov, checked Oct 20, 2026$6,000
State corporate income taxfiles.hawaii.gov, checked Oct 20, 2026$2,338
Federal corporate income tax (21%)irs.gov, 2026 rates$9,572
Federal income taxirs.gov, 2026 rates$4,189
State income taxfiles.hawaii.gov, checked Oct 20, 2026$3,973
Yearly cost$35,413
What these figures count
  • State income tax, and state taxes on the business itself: franchise, LLC, S corp, gross receipts and excise taxes.
  • Social Security and Medicare on both sides of an owner salary, federal unemployment tax and the state's new-employer rate.
  • The 20% qualified business income deduction with its income limits and the professional-service rule.
  • Yearly report fees, and a cost you can change for payroll and the business tax return.

Many S corp calculators leave out state taxes and the QBI deduction, which can make the election look better than it is.

When an S corp election pays in Hawaii

Electing S corp tax treatment for an LLC starts to pay in Hawaii at about $55,000 of profit, with the default salary and $1,800 a year for payroll and the extra tax return.

An S corp in Hawaii can elect to pay the state's income tax itself, a pass-through entity tax of 9%, and the owner gets a credit for it. The company deducts it on the federal return, so it is not held to the SALT cap. The calculator uses it when it lowers the totalfiles.hawaii.gov.

ProfitSole propLLCLLC as S corpC corp
$30,000$7,029$7,039$9,119$9,330
$50,000$13,617$13,627$14,269$16,117
$75,000$22,133$22,144$19,558$24,698
$100,000$31,372$31,380$27,712$35,413
$150,000$52,019$52,029$46,175$59,508
$200,000$73,214$73,221$65,072$82,620
$300,000$117,310$117,317$104,311$129,913

Single filer, no other income, revenue taken as 1.5 times profit, default salary. The lowest cost in each row is marked.

State fees and taxes in Hawaii

LLCCorporation
Filing to form$50Articles of Organization (Form LLC-1)$50Articles of Incorporation (Form DC-1)cca.hawaii.gov
Yearly reportAnnual Report, $15 a yearAnnual Report, $15 a yearcca.hawaii.gov
Report dueEnd of the calendar quarter in which the company was registeredEnd of the calendar quarter in which the corporation was registered
Hawaii general excise tax (GET)4% of gross receiptsyesyestax.hawaii.gov

Not in the calculator: Counties levy the 0.5% GET surcharge (Honolulu, Kauai, Hawaii, Maui). Hawaii also has a separate transient accommodations tax for rentals. No county income taxes.

Switching calculators for Hawaii

By profession in Hawaii

Questions

Is an S corp worth it in Hawaii?

On these figures, from about $55,000 of profit. At $100,000 an LLC taxed as an S corp costs $27,712 a year against $31,380 for a plain LLC, $3,668 less. The saving comes from paying Social Security and Medicare tax on a salary instead of on all profit.

How much does an LLC cost per year in Hawaii?

The state charges Annual Report, $15 a year. LLCs can also owe Hawaii general excise tax (GET). Forming one costs $50.

Does Hawaii recognise the S corp election?

Yes. The federal election carries over with no separate state form. Hawaii follows the federal S election. S corps file Form N-35.

What income tax does Hawaii charge?

Hawaii taxes personal income in 12 brackets, from 1.4% to 11% (2026, single filer). C corporations pay 4.4% to 6.4% of net income.

Sources checked 2026-10-20. Each figure links to the state or IRS page it comes from.

Other states