Why incorporate in Hawaii

Business Information & Rankings

Hawaii ranked as the Most Expensive State to Do Business (Cost-of-Doing Business Index, Milken Institute, 2005)
Hawaii ranked 50^th on Climate for Small Business and Entrepreneurs (Small Business Survival Index, 2004)
Hawaii ranked last on the State Business Tax Climate Index (The Tax Foundation, 2004)
A poll of 458 Chief Executives ranked Hawaii as the 5^th -least-attractive state for business.

Note: It is expensive to live and do business in Hawaii. A limit on the amount of developable land available and Hawaii?s distance from the Mainland translates to higher costs associated with having to import most items. Because of these reasons, Hawaii does not rank well on most business indexes.

Cost of Living Index

For Honolulu, HI (2005):	Index Score
Composite:	157.8
Housing:	228.2
Utilities:	138.8
Misc. Goods & Services:	124.1

Crime Rate

Hawaii has the 46^th lowest crime ranking in the U.S. (U.S. Dept. of Justice, FBI, Uniform Crime Reports, 2004)

Fees & Taxes

Business Inventory Tax

Business inventory is exempt.

Corporate Income Tax

First	$25.000	4.4 %
Next	$75.000	5.4 %
Over	$100.000	6.4 %

Qualified taxpayers with Hawaii sales of $100,000 or less may pay an alternative tax of 0.5% of Hawaii gross annual sales.

Personal Income Tax

Hawaii's personal income tax system consists of nine brackets with a top rate of 8.25% starting at an income level of $40,000. This top rate ranks the state 5^th highest among states levying personal income taxes.

Personal Property Tax

Exempt. Intangible personal property is exempt from taxation. Personal property such as cars or boats are not subject to property tax.

Real property, land and improvements are taxed with assessments at 100% "fair market value." Tax rates are per $1,000 net assessed value.

State Sales and Use Tax

Base Rate: 4%
Machinery Rate: 0.5%

Unemployment Insurance

Hawaii's new employers' rate is 2.4% for 3 years.

Why incorporate in Hawaii?