LLC vs. Sole Proprietorship in Hawaiʻi: What’s Best for You?
If you own a small business in Hawaiʻi, choosing the right legal structure matters. While a sole proprietorship is easy to start, a limited liability company (LLC) may offer stronger protection and long-term benefits.
Why Many Local Business Owners Choose an LLC
Personal Asset Protection
With an LLC, your personal finances stay separate from your business liabilities.
Credibility & Growth
LLCs often look more professional and open doors to more opportunities.
Flexible Tax Options
You may be eligible for pass-through taxation or elect to be taxed as an S-corp.
Easy Management
Compared to corporations, LLCs involve far less paperwork and red tape.
When a Sole Proprietorship Might Work
If you’re a freelancer or just getting started, a sole proprietorship might be enough—at least initially. But as your business grows, the risks grow too.
We Can Help You Decide
Michael can walk you through the pros and cons, and even set up your LLC with all the required filings.
