Hawaii charges $51 to form an LLC; Pennsylvania charges $125. 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 $50 less in total state fees than Pennsylvania. Whether that gap matters depends on whether you actually operate in one of these states or are weighing a non-resident filing.

On speed, Pennsylvania typically clears standard online filings faster than Hawaii. Both states offer expedited tiers at an additional cost for filers on tight timelines.

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
Hawaii $51
Pennsylvania $125
Hawaii saves $74
Year 1 total estimate
Hawaii $166
Pennsylvania $232
Hawaii saves $66
Ongoing per year
Hawaii $115
Pennsylvania $107
Pennsylvania saves $8
3-year total
Hawaii $396
Pennsylvania $446
Hawaii saves $50

Key differences at a glance

  • Hawaii costs $74 less to form ($51 vs $125).
  • Pennsylvania is $8 per year cheaper to maintain ($107 vs $115).

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.

Hawaii Pennsylvania
Year 1
$166
$232
Year 2
$281
$339
Year 3
$396
$446

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 Hawaii, business operates there
No foreign LLC registration needed. You pay Hawaii fees only.
$166 $115 $396
You live in Pennsylvania, business operates there
No foreign LLC registration needed. You pay Pennsylvania fees only.
$232 $107 $446
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
Non-resident forming in Pennsylvania with operations elsewhere
You pay Pennsylvania's fees plus a typical home-state foreign LLC registration of about $200 per year.
$432 $307 $1,046

Hawaii vs Pennsylvania: full comparison

Dimension Hawaii Pennsylvania
Online filing
Can you file the formation document online?
Yes Yes
Online approval time
Standard, non-expedited
5 business days 3 business days
Expedited option
Paid fast-track filing
$25 $100
Annual report
Required in addition to tax
Required, $15 Required, $7
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
$51 $250
State sales tax
General statewide rate
None 6.0%

Taxes in Hawaii and Pennsylvania

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.

Hawaii tax

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

Pennsylvania tax

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

Ongoing compliance

The recurring filings each state requires after formation.

Hawaii

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

Pennsylvania

Annual report $7, due 09/30 each year. Registered agent required in Pennsylvania.

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.

Hawaii

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

Pennsylvania

  1. Check business-name availability on the Pennsylvania entity search.
  2. Appoint a registered agent with a physical Pennsylvania street address.
  3. File Certificate of Organization – Domestic Limited Liability Company (DSCB:15-8821) for $125.
  4. Wait for approval. Online typically 3 business days. Paid expedite from $100.
  5. Adopt an operating agreement (recommended, not required by Pennsylvania statute).
  6. Apply for a federal EIN (free from the IRS).
  7. Open a business bank account to separate personal and business finances.
  8. File your first annual report and pay $7 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 Hawaii and Pennsylvania (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 Hawaii or Pennsylvania 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

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

Pennsylvania Department of State, Bureau of Corporations and Charitable Organizations

Website
www.pa.gov/agencies/dos/programs/business.html
Phone
(717) 787-1057
Email
RA-CORPS@pa.gov
Mail
Bureau of Corporations and Charitable Organizations, 401 North Street, 206 North Office Building, Harrisburg, PA 17120
Office
401 North Street, 206 North Office Building, Harrisburg, PA 17120
Hours
8:00 AM to 4:45 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

Pennsylvania Department of Revenue

Website
www.pa.gov/agencies/revenue.html
Phone
(717) 787-1064
Mail
Pennsylvania Department of Revenue, 1131 Strawberry Square, Harrisburg, PA 17128
Office
Strawberry Square, Harrisburg, PA 17128
Hours
8:00 AM to 5:00 PM Eastern, Monday to Friday

Frequently Asked Questions

  • Is it cheaper to form an LLC in Hawaii or Pennsylvania?

    Hawaii is cheaper at formation ($51) than Pennsylvania ($125). Ongoing costs are also different: $115 vs $107 per year. Total over three years: $396 vs $446.

  • Can I form an LLC in Hawaii if I live in Pennsylvania?

    Yes, but your Pennsylvania business will almost certainly need to register as a foreign LLC in Pennsylvania too, which means paying Pennsylvania's foreign registration fee and any ongoing Pennsylvania obligations on top of the Hawaii 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 Hawaii vs Pennsylvania?

    Hawaii online: 5 business days; Pennsylvania online: 3 business days. Hawaii offers paid expedite from $25. Pennsylvania offers paid expedite from $100.

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

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

More Hawaii and Pennsylvania comparisons

Sources

  • 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.
  • Filing fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
    Pennsylvania Department of State 'Fees and Payments' schedule: Certificate of Organization (domestic LLC) = $125. Veterans, reservists, and National Guard members may qualify for fee waiver with proof of service.
  • Expedited filing: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
    PA Department of State expedited service tiers (over-the-counter or electronic only, not available by mail): Same-day (request in by 10 AM) $100; 3-hour (by 2 PM) $300; 1-hour (by 4 PM) $1,000. We report same-day $100 as the cheapest expedited tier.
  • Certificate of Formation form: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
    A Pennsylvania LLC is formed by filing Certificate of Organization (DSCB:15-8821) together with a Docketing Statement (DSCB:15-134A) with the Bureau of Corporations and Charitable Organizations. Fillable PDF is hosted at pa.gov.
  • Online filing portal: hub.business.pa.gov/ · verified April 21, 2026
    PA Business One-Stop Hub (Keystone Login). Online filing portal for Certificate of Organization, annual report, amendments, and UCC. Online LLC formation is typically approved within 1–3 business days based on the Department's published Business Filing Services guidance.
  • Business name search: file.dos.pa.gov/search/business · verified April 21, 2026
    Pennsylvania business entity search, operated by the Department of State. Cloudflare bot-verification gate appears on first load; page otherwise resolves normally.
  • Naming rules: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
    15 Pa.C.S. Chapter 2 (Entities Generally): Sections 202 (requirements for names) and 204 (name restrictions, including required designators such as 'company,' 'limited,' 'limited liability company,' or an abbreviation). Official Pennsylvania General Assembly statutes.
  • Operating agreement requirement: www.palegis.us/statutes/consolidated/view-statute?iFrame=true&txtType=… · verified April 21, 2026
    15 Pa.C.S. §8815 recognizes operating agreements (written, oral, or implied) but does not require LLCs to adopt one. Under Chapter 88 (Pennsylvania Uniform Limited Liability Company Act of 2016), default statutory rules govern in the absence of an operating agreement.
  • Publication requirement: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
    PA Department of State LLC information page: 'No advertising is required when forming a domestic limited liability company.' The old pre-2017 publication rule was repealed by Act 170 of 2016.
  • Foreign LLC registration fee: www.pa.gov/agencies/dos/programs/business/fees-and-payments · verified April 21, 2026
    PA DOS fee schedule: Foreign Registration Statement (foreign LLC) = $250.
  • Annual report fee: www.pa.gov/agencies/dos/programs/business/types-of-filings-and-registr… · verified April 21, 2026
    Pennsylvania Annual Reports page: under Act 122 of 2022, LLCs must file an annual report (Form DSCB:15-146) each year between January 1 and September 30. Fee is $7 for for-profit LLCs. Beginning with 2027 filings, non-compliance triggers administrative dissolution 6 months after the deadline.
  • Franchise tax: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
    Pennsylvania eliminated the Capital Stock/Foreign Franchise Tax effective for tax years beginning January 1, 2016. No franchise or capital stock tax applies to LLCs. Restricted professional companies pay a separate annual registration fee of at least $500 under 15 Pa.C.S. §8998.
  • Corporate income tax rate: www.pa.gov/agencies/revenue/resources/tax-rates/corporation-tax-rates · verified April 21, 2026
    PA Department of Revenue Corporate Net Income Tax rate for 2026 = 7.49% (Act 53 of 2022 schedule). Rate steps down 0.5 points per year to 4.99% by 2031. Applies to C-corps and to LLCs that elect C-corp treatment.
  • Sales tax rate: www.pa.gov/agencies/revenue/resources/tax-types-and-information/sales-… · verified April 21, 2026
    Pennsylvania Sales, Use and Hotel Occupancy Tax base rate is 6%. Allegheny County adds 1% local tax and Philadelphia adds 2% local tax; statewide base rate reported here.