Choosing a legal domicile for a new business isn't as simple as just registering with the nearest county or state office. It's possible to register your business in another state even if it's not the primary location in which you're doing business. There are certain drawbacks to this plan - for instance, sometimes this will expose your business to taxes from both the state where your business primary operates and the state it is legally domiciled.
For businesses doing a lot of interstate commerce, choosing the best state to legally domicile is an important decision. Hawaii offers a lot of benefits for registering your business there, but before you make a decision you should have an understanding of business law in Hawaii.
Benefits of Basing a Business in Hawaii
One of the attractive reasons to legally domicile your business is that business law in Hawaii is rather unobtrusive, as well as convenient. Some states require you to register a business both in the state and county in which the business is domiciled, but Hawaii requires only a state registration. Registering a business in Hawaii is very easy, and very fast - the process usually takes less than a working week. In addition, Hawaii does not assess business franchise taxes or charter taxes, which can save a business owner a lot of money.
Filling Out the Paperwork
In order to start up a business in Hawaii, you must fill out the appropriate forms according to business law in Hawaii. These forms declare if your business is a sole proprietorship (a single owner), a partnership (two or more owners), a limited liability corporation (the business is legal entity, with one or more shareholders), or an S-Corporation (a special type of corporation). Once you know what the ownership of business you will be starting is, you must obtain the appropriate license to run the business.
Patents and Trademarks
If your business develops a product, it's important to protect that product against copying by competitors. In order to do this, you need to obtain a patent. A patent is a grant of property right to the inventor of a useful idea or invention. Obtaining a patent under business in law in Hawaii uses the same rules as obtaining a patent from the United States government.
You should also look into attaining a trademark for your business. A trademark is also obtained from the federal government, so there are no special rules for getting a trademark in Hawaii. A trademark protects your company name, logo, slogan and other information that identifies your company to consumers.
