Reinstate a Business in Hawaii | A Step-by-Step Guide

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Reinstate Hawaii Business

Running a business or forming an LLC in Hawaii can be a rewarding yet challenging experience. When operating a business, unforeseen circumstances may arise, leading to the suspension or dissolution of the entity. If your business has been suspended or dissolved in Hawaii, you do not need to worry. This guide will provide a step-by-step process to Reinstate your Business in Hawaii and get back on track.

Webinarcare Editorial Team will help you easily reinstate your Hawaii business. You must be guided by all the factors gathered in this article.

How to Reinstate a Business in Hawaii

Understanding Dissolution and Suspension

Before diving into the reinstatement process, it’s essential to understand the difference between dissolution and suspension.

Dissolution

Dissolution is the legal termination of a business entity. This can happen voluntarily by the owners or involuntarily by Hawaii due to non-compliance with state laws and regulations. When a business is dissolved, it must cease all operations and settle outstanding debts and liabilities.

Suspension

The state can suspend a business entity for various reasons, such as failing to file Annual Reports or paying taxes. When a business is suspended, it loses its right to conduct business within Hawaii, and the owners may be personally liable for any debts or liabilities incurred during the suspension period. Hiring a Resident Agent for your documents to be compliant is very important. You could check out the Best Hawaii Resident Agent Services in Hawaii.

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How to Reinstate a Business in Hawaii

In Hawaii, reinstating your business needs a lot of preparation, more specifically if it is located in Honolulu. To be aware and prepared, we have gathered information on the steps to reinstate your Hawaii business. If it is manageable to Dissolve a Business in Hawaii, it is also bearable to reinstate your Hawaii business. Keep in mind that you should follow the mentioned steps below. 

Step 1: Determine the Reason for Suspension or Dissolution

The first step in reinstating your Hawaii business is determining why it is suspended or dissolved. This information can be found in the notice issued by Hawaii or by contacting the Hawaii Secretary of State. Common reasons for suspension or dissolution include:

  • Failure to file Annual Reports
  • Failure to pay taxes or fees
  • Failure to maintain a Resident Agent
  • Non-compliance with state laws and regulations

Step 2: Resolve Outstanding Issues

Once you have identified the reason for your business’s suspension or dissolution, you must resolve the outstanding issues. This may include:

  • Filing any missing Hawaii Annual Reports and paying associated fees. In Hawaii, the LLC Annual Reports costs $12.50 while the Corporation Annual Report costs $15.
  • Paying any outstanding taxes or fees
  • Appointing or updating your Resident Agent information. 
  • Resolving any non-compliance issues with state laws and regulations

Ensure that you keep records of all payments and documents submitted to the Hawaii Secretary of State, as you may need to provide proof of compliance during the reinstatement process. We recommend hiring the Best Resident Agent Services if you plan to reinstate your business. This will ensure that your documents are up to date.

It is suggested that you speak with a legal professional before you begin reinstating your Hawaii business. They’ll understand what’s best for you and your company. To safeguard your personal assets from business debts, you can always start an LLC in Hawaii.

– WEBINARCARE EDITORIAL TEAM

Step 3: Obtain a Certificate of Good Standing

Certificate of Good Standing is a document issued by Hawaii that verifies that your business is in compliance with all state requirements and is authorized to conduct business within the state. Although obtaining a Certificate of Good Standing is not always required for reinstatement, it can be beneficial in demonstrating your business’s compliance and may expedite the reinstatement process.

To obtain a Certificate of Good Standing in Hawaii, you will need to:

Get and Submit the Form

The form is available on the Hawaii Secretary of State website. You can download the form and mail it or submit it online. 

Online Application Process:
  • Visit the State Website: In Hawaii, they offer an online portal for business services, which includes the option to request a Certificate of Status.
  • Register an Account: You may need to create an account or log in to your existing account to access the application process.
  • Provide Required Information and Documentation: The online application typically requires basic information about your business, such as the entity name, identification number, and business type. You may also need to upload supporting documents. 
Paper Application Process:
  • Download and Complete the Appropriate Forms: Visit the Hawaii Secretary of State to download the required application forms for the Certificate of Good Standing. Complete the forms, ensuring all information is accurate and up-to-date.
  • Provide Required Documentation: In Hawaii, you may need to include copies of your registration documents, Articles of Organization, Annual Reports, or other supporting materials.
  • Mail or Deliver the Application: Once you have completed the forms and gathered the necessary documents, mail or deliver the application package to the Department of Commerce and Consumer Affairs, Business Registration Division, 335 Merchant St., P.O. Box 40, Honolulu, HI 96810, along with the required fees.
Pay Any Associated Fees

The fees for obtaining a Certificate of Good Standing cost $7.50, vary depending on the type of business entity. Some states also offer expedited processing for an additional fee. Check the Hawaii Secretary of State website for the most up-to-date fee schedule. The Certificate of Good Standing’s processing time varies from state to state. Also, it depends on the expedited filing as well. It can take a few days to a few months to obtain the Certificate of Good Standing in Hawaii.

Provide Proof of Compliance

To prove compliance with state requirements, you must file Annual Reports and pay the necessary taxes.

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Step 4: Submit Reinstatement Application

Once you have resolved all outstanding issues and obtained a Certificate of Good Standing, you can submit your reinstatement application to the Hawaii’s Secretary of State. The reinstatement application process may vary depending on the state and the type of business entity (corporation, LLC, etc.).

In general, the reinstatement application process will require:

  • Completing a reinstatement application form is typically found on the Hawaii Secretary of State’s website.
  • Providing proof of compliance with state requirements, such as filing Annual Reports, paying taxes, and maintaining a Resident Agent.
  • Pay the reinstatement fee in Hawaii. The cost of the reinstatement fee amounts to $25. However, the cost will vary depending on the length of time your Hawaii business has been suspended or dissolved.

Step 5: Wait for Approval

After submitting your reinstatement application and all required documentation, you must await approval from the Hawaii’s Secretary of State. The processing time for reinstatement applications can vary depending on the Hawaii and the complexity of your case. Being patient and prepared to provide any additional information or documentation requested by Hawaii during this time is essential.

Step 6: Notify Creditors and Stakeholders

Once your business has been reinstated, you must notify creditors and stakeholders of your business’s renewed status. This may include:

  • Sending a formal letter to creditors and stakeholders informing them of the reinstatement.
  • Updating your Hawaii business’s website and social media accounts to reflect the reinstated status.
  • Informing any relevant licensing or regulatory agencies of the reinstatement.

Step 7: Resume Business Operations

After your Hawaii business has been reinstated and all relevant parties have been notified, you can resume your business operations. Be sure to maintain compliance with state laws and regulations moving forward to avoid future suspensions or dissolutions.

Reinstating or Creating a New Business?

Whether to reinstate a business or start a new one from scratch depends on several factors specific to your situation. Here are some points to consider when making your decision:

  • Costs: The costs of reinstating and starting a new business can vary significantly. Reinstating a business may involve paying outstanding taxes, fees, and penalties while starting a new business requires registration fees and potential legal costs. Compare both options’ costs to determine which is more financially viable.
  • Business History and Reputation: If your previous business has a strong reputation and established customer base, reinstating it may be more beneficial than starting from scratch. On the other hand, if your Hawaii business has a negative history or unresolved legal issues, start fresh with a new business.
  • Time and Effort: Reinstating a business can be a time-consuming process, as you need to resolve outstanding issues, submit a reinstatement application, and wait for approval. Starting a new Hawaii business may be faster, as you can register the business and begin operations relatively quickly. Consider which option is more time-efficient based on your situation.
  • Legal and Regulatory Compliance: If your previous Hawaii business was suspended or dissolved due to non-compliance with state laws and regulations, you should carefully evaluate whether you can maintain compliance if the business is reinstated. If you are confident in your ability to comply with requirements, reinstating the business might be a good option. However, starting a new Hawaii business might be a better choice if you still determine your ability to maintain compliance.

Ultimately, deciding to reinstate a business or start a new one from scratch depends on your circumstances and goals. Consider the abovementioned factors, consult with professionals such as Hawaii Business Attorneys and accountants, and evaluate which option best suits your needs and long-term business objectives.

FAQs

What is required to reinstate a Hawaii business?
The Hawaii business must file an Application for Reinstatement and pay fees and taxes that may be due.
How long does it take to reinstate a Hawaii business?
The average time for processing reinstatement of a Hawaii business is 3-5 business days, provided all fees and taxes are paid in full.
Can I reinstate my Hawaii business online?
Yes. The state of Hawaii allows online reinstatement for certain types of businesses.
Can the state of Hawaii provide me with assistance for reinstating a business?
Yes. You may contact the Hawaii Department of Commerce and Consumer Affairs for assistance with reinstating a business.
What is the cost to reinstate a Hawaii business?
The fee for reinstating a Hawaii business varies depending on the type of business and the length of time it has been inactive.
Can I change the name or the business structure when reinstating my Hawaii business?
Yes, you can change the name or the business structure when reinstating your Hawaii business, but the appropriate paperwork must be filed.
Are there any tax obligations when reinstating a Hawaii business?
Yes. The state of Hawaii requires businesses to resolve any tax debts before reinstating.
Can I reinstate a dissolved Hawaii LLC?
Yes, you can reinstate a dissolved Hawaii LLC, but some restrictions apply.
Can I be held accountable for debts incurred by my Hawaii business if it is no longer active?
Yes, you may still be held accountable for debts incurred by your Hawaii business even if it is no longer active.
What type of documentation is required to reinstate a Hawaii business?
Businesses must file an Application for Reinstatement and all required documentation to reinstate a Hawaii business.
Can I reapply for a business license when reinstating a Hawaii business?
Yes, you must reapply for a business license when reinstating a Hawaii business.
Can I speed up the reinstatement process for my Hawaii business?
No, the reinstatement process for a Hawaii business is standardized and cannot be expedited.
Will I receive any notice of reinstatement of my Hawaii business?
Yes, the Hawaii Department of Commerce and Consumer Affairs will issue a notice of reinstatement once the business has been reinstated.
Can I operate my Hawaii business during the reinstatement process?
No, a Hawaii business cannot operate during the reinstatement process.
Do I need to file annual reports to maintain reinstatement for my Hawaii business?
Yes, Hawaii businesses must file annual reports and pay fees to maintain reinstatement.
Can I reinstate my Hawaii business after it has been dissolved by the state?
Yes, a Hawaii business can be reinstated after state dissolvement by filing the proper paperwork and paying all fees and taxes due.
Is there any difference in the reinstatement process for Hawaii non-profit organizations?
No, Hawaii non-profit organizations must follow the same reinstatement process as for-profit businesses.
Can I continue to use my Hawaii business name during the reinstatement process?
No, you cannot use your Hawaii business name during the reinstatement process as your business is considered inactive.
How can I update my Hawaii business information during the reinstatement process?
You can update your Hawaii business information during the reinstatement process by filing the appropriate paperwork.
Can I reinstate my Hawaii business if I am not the original owner?
Yes, you can reinstate a Hawaii business even if you are not the original owner by providing proof of ownership.
Can my Hawaii business continue to charge customers while in the reinstatement process?
No, a Hawaii business cannot charge customers while it is inactive during the reinstatement process.
Can I operate an inactive Hawaii business during the reinstatement process?
No, a Hawaii business cannot operate during the reinstatement process.
Can I reinstate my Hawaii business if it has been inactive for an extended length of time?
Yes, you can reinstate a Hawaii business even if it has been inactive for an extended period of time by filing the appropriate paperwork and paying fees and taxes due.
How do I know if my Hawaii business is inactive?
You may check the status of your Hawaii business by searching the state database for its status.
Can I reinstate my Hawaii business if it has a history of legal troubles?
Yes, you can reinstate a Hawaii business with a history of legal troubles, provided all legal obligations have been satisfied.
Is it necessary to have a physical address to reinstate my Hawaii business?
Yes, you need a physical address to reinstate your Hawaii business.
Can I continue to operate under my Hawaii business name after it has been dissolved or terminated?
No, once your Hawaii business is dissolved or terminated, you cannot use the same name to operate a new business.
Will I be allowed to keep the same tax ID number after reinstating my Hawaii business?
Yes, you will be allowed to keep the same tax ID number after reinstating your Hawaii business.
How do I reinstate my Hawaii business?
To reinstate your Hawaii business, you need to file an Application for Reinstatement with the Hawaii Business Registration Division.
How long does it take to reinstate a Hawaii business entity?
The processing time for reinstating a business entity in Hawaii depends on the volume of pending reinstatement requests.
Can I file to reinstate my Hawaii business entity online?
Yes, you can file to reinstate your Hawaii business entity online using Hawaii Business Express.
What is the fee for reinstating a Hawaii business entity?
The fee for reinstating a Hawaii business entity is $25.
Do I need to be current on my Hawaii tax obligations to reinstate my business entity?
Yes, you need to be current on your Hawaii tax obligations to reinstate your business entity.
What documents do I need to provide to reinstate my Hawaii business entity?
You will need to provide proof of dissolution or cancellation, if feasible, documentation to support the Request for Reinstatement, and all required fees.
Is there a deadline for reinstating my Hawaii business entity?
No, there is no deadline for reinstating your Hawaii business entity.
Can I reinstate my Hawaii business entity if it was administratively dissolved?
Yes, you can reinstate your Hawaii business entity if it was administratively dissolved.
How do I know if my Hawaii business entity was administratively dissolved?
You can check the status of your Hawaii business entity online using the Hawaii Business Express search tool.
Can I reinstate my Hawaii business entity if it was revoked by the Hawaii Department of Commerce and Consumer Affairs?
Yes, you can reinstate your Hawaii business entity if it was revoked by the Hawaii Department of Commerce and Consumer Affairs.
What are the consequences of not reinstating my Hawaii business entity?
If you do not reinstate your Hawaii business entity, it will no longer have the legal capacity to conduct business in the state of Hawaii.
Can I apply to reinstate my Hawaii business entity if I have outstanding fines or penalties?
Yes, you can apply to reinstate your Hawaii business entity if you have outstanding fines or penalties, but you will need to pay these amounts in full and provide proof of payment.
Can I change the name of my Hawaii business during the reinstatement process?
Yes, you can change the name of your Hawaii business during the reinstatement process.
Can I reinstate a Hawaii non-profit organization?
Yes, you can reinstate a Hawaii non-profit organization, but the process may be different from that of a for-profit business entity.
Can I get help with the reinstatement process for my Hawaii business entity?
Yes, you can consult with a Hawaii business attorney, accountant, or business consultant for help with the reinstatement process.
What is the required content for the Application for Reinstatement form for Hawaii businesses?
The required content for the Application for Reinstatement form for Hawaii businesses includes the business name, the date of dissolution or cancellation, and the reason for seeking reinstatement.
Is it possible to expedite the reinstatement process for my Hawaii business entity?
Yes, you can expedite the reinstatement process for your Hawaii business entity by paying an additional fee for expedited service.
Can I request a refund if my Hawaii business entity reinstatement request is denied?
No, you cannot request a refund if your Hawaii business entity reinstatement request is denied.
Do I need to submit a Certificate of Good Standing to reinstate my Hawaii business entity?
No, you do not need to submit a Certificate of Good Standing to reinstate your Hawaii business entity.
Can I complete the Hawaii business entity reinstatement process by mail?
Yes, you can complete the Hawaii business entity reinstatement process by mail.
What should I do if I have lost my Hawaii business entity’s original Hawaii state identification number?
If you have lost your Hawaii business entity’s original Hawaii state identification number, you will need to complete a Request for Business Entity Information form and include a $3 fee.
Can I reinstate a Hawaii business entity that is in chapter 7 or 13 bankruptcy?
Yes, you can reinstate a Hawaii business entity that is in chapter 7 or 13 bankruptcy, but you will need to provide proof that the bankruptcy case has been closed.
Can I reinstate a Hawaii business entity if it has been dissolved for two years or more?
Yes, you can reinstate a Hawaii business entity if it has been dissolved for two years or more.
If my Hawaii business entity was voluntarily dissolved, do I still need to file an Application for Reinstatement?
Yes, if your Hawaii business entity was voluntarily dissolved, you still need to file an Application for Reinstatement.
Can I reinstate a Hawaii business entity that was a sole proprietorship?
No, you cannot reinstate a Hawaii business entity that was a sole proprietorship.
Is there a penalty for failing to file annual reports for a Hawaii business entity?
Yes, there is a penalty for failing to file annual reports for a Hawaii business entity.
Can I reinstate a Hawaii business entity if it is on the Hawaii Business Pre-Establishment Work Program (BPEWP) list?
No, you cannot reinstate a Hawaii business entity if it is on the Hawaii Business Pre-Establishment Work Program (BPEWP) list.
How do I contact the Hawaii Business Registration Division if I have questions about reinstating my Hawaii business entity?
You can contact the Hawaii Business Registration Division at (808) 586-2666 or online using the Contact Us page.

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Conclusion

Reinstating a business in Hawaii can be complex and time-consuming. However, following the steps outlined in this guide, you can successfully reinstate your business and resume operations. Remember to stay diligent in maintaining compliance with state laws and regulations to avoid future issues and ensure the continued success of your business.

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