Is it cheaper to form an LLC in Connecticut or Hawaii?

Hawaii is cheaper at formation ($51) than Connecticut ($120). Ongoing costs are also different: $115 vs $180 per year. Total over three years: $396 vs $660.

Can I form an LLC in Connecticut if I live in Hawaii?

Yes, but your Hawaii business will almost certainly need to register as a foreign LLC in Hawaii too, which means paying Hawaii's foreign registration fee and any ongoing Hawaii obligations on top of the Connecticut ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.

How long does it take to form an LLC in Connecticut vs Hawaii?

Connecticut online: 5 business days; Hawaii online: 5 business days. Connecticut offers paid expedite from $50. Hawaii offers paid expedite from $25.

Which state has lower taxes for an LLC, Connecticut or Hawaii?

Connecticut: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.

Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Connecticut and Hawaii both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.

Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Connecticut or Hawaii to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Connecticut vs Hawaii LLC comparison

Connecticut charges $120 to form an LLC; Hawaii charges $51. Day-one sticker price is only part of the story, since most of the real cost comes from the annual obligations that stack up each year you keep the LLC open.

Over a rolling three-year window, Hawaii runs about $264 less in total state fees than Connecticut. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

For most small operators the choice is not really between these two states at all. It is between forming where the business actually operates and trying to route through a non-resident filing. The data below shows what each option actually costs.

Formation filing fee

Connecticut $120

Hawaii $51

Hawaii saves $69

Year 1 total estimate

Connecticut $300

Hawaii $166

Hawaii saves $134

Ongoing per year

Connecticut $180

Hawaii $115

Hawaii saves $65

3-year total

Connecticut $660

Hawaii $396

Hawaii saves $264

Key differences at a glance

Hawaii costs $69 less to form ($51 vs $120).
Hawaii is $65 per year cheaper to maintain ($115 vs $180).

Where each state fits

For most filers, forming in the state you actually operate from is the right call. The side-by-side below shows where the two states meaningfully diverge.

What each state offers that the other does not

Only Hawaii

No state sales tax

Both states

Online filing
Paid expedited tier
No entity-level franchise or LLC tax
No publication requirement
Operating agreement not statutorily required

Three-year cost, side by side

Rough estimate of the state-facing cost to form and keep an LLC through three years. Both totals include a $100 per year registered-agent estimate.

Connecticut Hawaii

Year 1

$300

$166

Year 2

$480

$281

Year 3

$660

$396

Running total includes the one-time filing fee and annual ongoing costs (report fee or franchise tax plus a $100/year registered agent estimate).

What it costs under your specific situation

The table below runs the same LLC through four common scenarios. "Non-resident" rows assume a typical home-state foreign LLC registration adds about $200 per year of stacked cost; the real number depends on which state you live in and ranges from $50 to over $800 depending on jurisdiction.

Scenario	Year 1	Each year after	3-year total
You live in Connecticut, business operates there No foreign LLC registration needed. You pay Connecticut fees only.	$300	$180	$660
You live in Hawaii, business operates there No foreign LLC registration needed. You pay Hawaii fees only.	$166	$115	$396
Non-resident forming in Connecticut with operations elsewhere You pay Connecticut's fees plus a typical home-state foreign LLC registration of about $200 per year.	$500	$380	$1,260
Non-resident forming in Hawaii with operations elsewhere You pay Hawaii's fees plus a typical home-state foreign LLC registration of about $200 per year.	$366	$315	$996

Connecticut vs Hawaii: full comparison

Dimension	Connecticut	Hawaii
Online filing Can you file the formation document online?	Yes	Yes
Online approval time Standard, non-expedited	5 business days	5 business days
Expedited option Paid fast-track filing	$50	$25
Annual report Required in addition to tax	Required, $80	Required, $15
State-imposed annual tax Franchise, privilege, or LLC tax minimum	None	None
State income tax On pass-through LLC income at member level	Yes	Yes
Publication requirement Newspaper publication after formation	No	No
Operating agreement Required by state statute	Recommended, not required	Recommended, not required
Foreign LLC fee Cost to register as a foreign LLC in this state	$120	$51
State sales tax General statewide rate	6.3%	None

Taxes in Connecticut and Hawaii

How each state handles entity-level tax on LLCs. Pass-through classification means member-level income tax also applies at each member's residence state.

Connecticut tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 7.5%.

Hawaii tax

No entity-level franchise tax on LLCs. State income tax applies to member-level pass-through income. Corporate rate 6.4%.

Ongoing compliance

The recurring filings each state requires after formation.

Connecticut

Annual report $80, due 03/31 each year. Registered agent required in Connecticut.

Hawaii

Annual report $15, due on your anniversary month. Registered agent required in Hawaii.

Formation process, side by side

What actually happens from the moment you start filing to the moment you're in good standing. Use this as a checklist.

Connecticut

Check business-name availability on the Connecticut entity search.
Appoint a registered agent with a physical Connecticut street address.
File Certificate of Organization (Limited Liability Company, Domestic) for $120.
Wait for approval. Online typically 5 business days. Paid expedite from $50.
Adopt an operating agreement (recommended, not required by Connecticut statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $80 when it comes due.

Hawaii

Check business-name availability on the Hawaii entity search.
Appoint a registered agent with a physical Hawaii street address.
File Articles of Organization for Limited Liability Company (Form LLC-1) for $51.
Wait for approval. Online typically 5 business days. Paid expedite from $25.
Adopt an operating agreement (recommended, not required by Hawaii statute).
Apply for a federal EIN (free from the IRS).
Open a business bank account to separate personal and business finances.
File your first annual report and pay $15 when it comes due.

Before you pick either state

A few things that apply no matter which state you choose. These trip up enough first-time filers that they're worth stating explicitly.

Registered agent is non-negotiable. Both Connecticut and Hawaii (and every other US state) require every LLC to designate a registered agent with a physical street address in the state of formation. You can serve as your own agent if you live in the state; otherwise a commercial agent runs $50 to $125 per year. Using your own home address makes it part of the public record.

Forming elsewhere does not escape your home state's tax. If you live and operate a business from your home state, forming the LLC in Connecticut or Hawaii does not avoid your home state's income tax. The moment you transact business at home, your home state requires a foreign LLC registration, and state tax liability follows your residence regardless of where the entity sits on paper.

EIN applications are free. The IRS issues Employer Identification Numbers directly at no cost. Any service charging you to "get your EIN" is reselling a free form submission. Single-member LLCs with no employees technically don't need one for federal tax, but nearly every bank requires an EIN to open a business account.

Operating agreement matters more than the state you pick. A well-drafted operating agreement governs member ownership, management, profit splits, buy-sell terms, and dissolution. Without one, your LLC runs on the state's default rules, which are rarely what you want. California, Maine, Missouri, and New York require a written one by statute; every other state treats it as strongly recommended.

Agency contacts

Connecticut Secretary of the State, Business Services Division

Website: portal.ct.gov/sots
Phone: (860) 509-6003
Mail: Business Services Division, P.O. Box 150470, Hartford, CT 06115-0470
Office: 165 Capitol Avenue, Suite 1000, Hartford, CT 06106
Hours: 8:30 AM to 4:30 PM Eastern, Monday to Friday

Hawaii Department of Commerce and Consumer Affairs - Business Registration Division

Website: cca.hawaii.gov/breg
Phone: (808) 586-2727
Email: breg@dcca.hawaii.gov
Mail: Business Registration Division, Department of Commerce and Consumer Affairs, P.O. Box 40, Honolulu, HI 96810
Office: 335 Merchant Street, Room 201, Honolulu, HI 96813
Hours: 7:45 AM to 4:30 PM Hawaii-Aleutian Standard Time, Monday to Friday

Connecticut Department of Revenue Services

Website: portal.ct.gov/drs
Phone: (860) 297-5962
Email: drs@ct.gov
Mail: 450 Columbus Boulevard, Suite 1, Hartford, CT 06103
Hours: 8:30 AM to 4:30 PM Eastern, Monday to Friday

Hawaii Department of Taxation

Website: tax.hawaii.gov
Phone: (808) 587-4242
Mail: Department of Taxation, P.O. Box 259, Honolulu, HI 96809-0259
Office: 830 Punchbowl Street, Honolulu, HI 96813-5094
Hours: 7:45 AM to 4:00 PM Hawaii-Aleutian Standard Time, Monday to Friday

Frequently Asked Questions

Is it cheaper to form an LLC in Connecticut or Hawaii?

Hawaii is cheaper at formation ($51) than Connecticut ($120). Ongoing costs are also different: $115 vs $180 per year. Total over three years: $396 vs $660.
Can I form an LLC in Connecticut if I live in Hawaii?

Yes, but your Hawaii business will almost certainly need to register as a foreign LLC in Hawaii too, which means paying Hawaii's foreign registration fee and any ongoing Hawaii obligations on top of the Connecticut ones. The "form elsewhere to save" math usually doesn't work for operating businesses; it only works when you have no physical operations tied to any specific state.
How long does it take to form an LLC in Connecticut vs Hawaii?

Connecticut online: 5 business days; Hawaii online: 5 business days. Connecticut offers paid expedite from $50. Hawaii offers paid expedite from $25.
Which state has lower taxes for an LLC, Connecticut or Hawaii?

Connecticut: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax. Hawaii: state income tax applies to member-level pass-through income, no entity-level franchise or LLC tax.
Do both states require a registered agent?

Yes. Every US state (and DC) requires every LLC to maintain a registered agent with a physical street address in the state. Connecticut and Hawaii both have this requirement. You can serve as your own agent if you live in the state; most out-of-state filers use a commercial agent for $50 to $125 per year.
Which state should I pick if I run an online business from home?

Form in the state you actually live in. Your home state's Department of Revenue treats your residence as nexus regardless of where the LLC is filed, which means you owe state income tax there anyway. Forming in Connecticut or Hawaii to escape your home state's tax doesn't work; it adds paperwork. The non-resident filings make sense when you genuinely operate nowhere in particular: international founders, purely passive holding entities, or real-estate LLCs owning property in other states.

Full state guides

ConnecticutOpen Connecticut LLC guide →
HawaiiOpen Hawaii LLC guide →

More Connecticut and Hawaii comparisons

More Connecticut vs ...

More Hawaii vs ...

Sources

Filing fee: business.ct.gov/knowledge-base/articles/domestic-limited-liability-com… · verified April 21, 2026
Connecticut Secretary of the State Business Services: Certificate of Organization (formation of a domestic LLC) fee is $120. Same fee applies whether filed online through Business.CT.gov or by mail.
Expedited filing: business.ct.gov/knowledge-base/articles/expedited-services · verified April 21, 2026
Connecticut expedited service fee is $50 per transaction. Expedited service is only available for online filings through Business.CT.gov (not available for mail). Expedited filings typically process within 24 hours.
Annual report fee: business.ct.gov/knowledge-base/articles/domestic-limited-liability-com… · verified April 21, 2026
Annual Report fee = $80, filed online between January 1 and March 31 each year. Same $80 fee applies to foreign LLCs (Foreign Annual Report).
Franchise tax: www.cttaxalert.com/2019/08/business-entity-tax-repeal/ · verified April 21, 2026
Connecticut Public Act 19-117 (2019 budget bill) repealed the $250 biennial Business Entity Tax (Conn. Gen. Stat. Sec. 12-284b) effective for tax years beginning on or after January 1, 2020. Connecticut no longer imposes a franchise tax or business entity tax on LLCs. Flagged as applies: false per the instructions.
Foreign LLC registration fee: business.ct.gov/knowledge-base/articles/foreign-limited-liability-comp… · verified April 21, 2026
Connecticut Foreign Registration Statement (foreign LLC): $120 filing fee, matching the domestic Certificate of Organization. Foreign LLCs also file the $80 Annual Report between January 1 and March 31.
Sales tax rate: portal.ct.gov/drs/sales-tax/sales-and-use-tax-information · verified April 21, 2026
Connecticut Department of Revenue Services: statewide general sales and use tax rate is 6.35%. Connecticut does not authorize local sales taxes. A higher 7.75% rate applies to certain luxury goods and a 1% rate applies to computer and data processing services.
Corporate income tax rate: portal.ct.gov/drs/corporation-tax/corporation-business-tax · verified April 21, 2026
Connecticut Corporation Business Tax (CBT) base rate is 7.5% on net income. A 10% CBT surtax has been extended through income years beginning before January 1, 2026 by Public Act 24-151. The 7.5% is Connecticut's income-only corporate rate; the surtax and PTET are noted in taxes.notes rather than folded into this number.
Business name search: service.ct.gov/business/s/onlinebusinesssearch?language=en_US · verified April 21, 2026
Connecticut Business Records Search via the CT.gov portal. Use before filing to confirm name availability.
Online filing portal: business.ct.gov/ · verified April 21, 2026
Business.CT.gov is the official online filing portal for Connecticut business formation, annual reports, and amendments. Filings typically complete within 3 to 5 business days (standard) or about 1 business day with the $50 expedited fee.
Operating agreement requirement: law.justia.com/codes/connecticut/title-34/chapter-613a/section-34-243d… · verified April 21, 2026
Conn. Gen. Stat. Sec. 34-243a defines an operating agreement as the agreement of all members whether oral, implied, in a record, or any combination. No statutory requirement that the agreement be written or filed. Recorded as not required.
Publication requirement: law.justia.com/codes/connecticut/title-34/chapter-613a/ · verified April 21, 2026
Connecticut Uniform Limited Liability Company Act (Chapter 613a) contains no newspaper publication requirement. LLCs are not required to publish notice of formation.
Online filing portal: cca.hawaii.gov/breg/ · verified April 21, 2026
Hawaii BREG is launching a replacement business registration portal on April 27, 2026 (the legacy hbe.ehawaii.gov system went offline April 20). The new portal URL is not yet published. Until we can confirm the new direct URL, we point filers at the BREG division homepage, which lists the live online filing entry point. Re-verify once the new portal URL is announced.
Business name search: cca.hawaii.gov/business-check/ · verified April 21, 2026
DCCA Business Check is Hawaii's current live business-name search surface and remains the right entry point regardless of the BREG portal migration.
Filing fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Business Registration Division Form Fee Schedule (Rev. 12/2022): Limited Liability Company Articles of Organization filing fee = $50.00. A $1.00 State Archives preservation fee (HRS Section 94-8) is also imposed on permanent documents collected by BREG, bringing the day-one total to $51.00.
Expedited filing: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Hawaii DCCA Form Fee Schedule: Expedited Review Fee = $25.00 (additional) for most LLC filings including Articles of Organization. Expedited online filings are typically processed in 1 to 3 business days per BREG guidance.
Foreign LLC registration fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Foreign LLC Application for Certificate of Authority filing fee = $50.00 plus $1.00 State Archives preservation fee = $51.00 day-one cost.
Operating agreement requirement: law.justia.com/codes/hawaii/title-23a/chapter-428/section-428-103/ · verified April 21, 2026
HRS Section 428-103 (Effect of operating agreement; nonwaivable provisions) permits but does not require an operating agreement. Hawaii Uniform Limited Liability Company Act does not require a written operating agreement.
Publication requirement: cca.hawaii.gov/breg/registration/dllc/ · verified April 21, 2026
Hawaii BREG LLC registration page and HRS Chapter 428 contain no publication requirement for LLCs.
Annual report fee: cca.hawaii.gov/wp-content/uploads/2025/12/Form-Fee-Schedule-12-2022.pd… · verified April 21, 2026
Annual Report (Domestic/Foreign) LLC filing fee = $15.00 per Hawaii DCCA Form Fee Schedule. Due during the calendar quarter containing the LLC's registration anniversary per HRS Section 428-210. Late fee $10 per year. Authority confirmed via HRS Section 428-210.
Franchise tax: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii Department of Taxation: no franchise tax on LLCs. The General Excise Tax (GET) is a gross receipts tax, not a franchise tax. LLCs owe GET on business activity, not a separate entity-level franchise or privilege tax.
Corporate income tax rate: taxfoundation.org/location/hawaii/ · verified April 21, 2026
Hawaii corporate income tax: 4.4% on income up to $25,000, 5.4% on $25,001 to $100,000, 6.4% on income above $100,000. Record top marginal rate 6.4% as the income-only max. LLCs that default to pass-through do not owe this tax.
Sales tax rate: tax.hawaii.gov/geninfo/get/ · verified April 21, 2026
Hawaii has no retail sales tax. The General Excise Tax (GET) at 4% state plus 0.5% county surcharge is a gross receipts tax on the business. Recorded salesTaxRate as 0 per schema convention (statewide retail sales rate). GET nuance captured in taxes.notes.
Business name search: hbe.ehawaii.gov/documents/search.html · verified April 21, 2026
Hawaii Business Express (HBE) document and entity search. Confirm name availability before filing. Note: HBE is being replaced by a new BREG portal on April 27, 2026; URLs may update.
Certificate of Formation form: files.hawaii.gov/dcca/breg/registration/forms/llc-1.pdf · verified April 21, 2026
Official Form LLC-1 Articles of Organization for Hawaii LLC, published by DCCA Business Registration Division. Can be filed online via HBE, by mail, fax, email, or in person.

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