Companies preparing business taxes in Hawaii are plenty.  It is important to choose the right company for your business taxes,  and any company needs to make this decision responsibly. There are multiple factors that one needs to consider some of which are does the company offer bookkeeping and payroll services and how accessible is your tax professional throughout the year. We believe that a good bookkeeper and a tax professional is an essential partner in the business’ future growth.

When it comes to corporate taxes it is absolutely essential to sweat the small stuff. When and how did the ownership percentage change, does the balance sheet reflect the correct amount of depreciation, are the proper retained earnings accounted for etc. Although we see many small business owners trying to do their bookkeeping themselves to save on professional costs. Rarely a match for work performed by an experienced bookkeeper. DIY bookkeeping oftentimes lack essential financial documents such as statements of Cash Flows, Balance Sheet and Equity Statement. In case of an audit, do-it-yourself financial statements stand to hold more harm than benefit.

Erase Your Tax Frustrations

We're excited to build the best possible tax strategy for your company. 

• Small business tax preparation must be combined with quality consulting if you're going to succeed as an entrepreneur. Our platform is built on this idea.  If you're tired of hearing from your tax accountant once a year and are looking for more proactive support, then start by getting a free tax consult with us.
• You need to know what's going on.  Without a plan, taxes can destroy the growth trajectory of any business.

Here at Tax Services of Hawaii we'll teach you to never FEAR taxes again.  We don't offer cookie cutter services, instead we customize everything to meet your needs and expectations.  Having an experienced tax professional makes a huge difference in the tax strategy you apply for the coming years.  You need a plan and a professional to keep the plan on track.  Small business tax preparation is only part of the equation.

At Tax Services of Hawaii, we do more than just prepare your return.  You get a tax partner to help you throughout the year.  Each quarter, your tax consultant will analyze your tax strategy and meet with you to discuss your options.

From now on, you'll know what your tax liability is and you'll have a plan to manage it.  As one of the most affordable and experienced tax firms for entrepreneurs, we are geared to serve you and your business at our highest level.

No matter your entity structure, we can help maximize your deductions.  Our comprehensive business tax preparation will ensure no money is left on the table and give you piece of mind and confidence to file your tax return.  We use advanced technologies and practices to ensure the time spent on your tax return is focused on strategy and accuracy instead of data input.

Give us a call at (808) 529-1040 or send us a quick email at support@myhawaiitax.com with any questions you may have.

Thinking of owning your own business?

Hawaii Business Incorporation: LLC vs. Corporation — Choosing the Right Structure

Starting a business in Hawaii is exciting. From Honolulu to Kailua to Hilo, entrepreneurs across the islands are building companies that serve their communities and grow the local economy. But once the excitement settles, one of the most important decisions you’ll make is choosing the right business structure.

Whether you're forming an LLC in Hawaii, incorporating as a Hawaii corporation, or deciding between an S Corporation and C Corporation, selecting the proper entity can impact your taxes, liability protection, and long-term success.

What Does It Mean to Incorporate in Hawaii?

When you incorporate a business or form an LLC in Hawaii, you create a legal entity that is separate from you personally. This means:

• Your personal assets are generally protected from business liabilities

• The business can continue operating even if ownership changes

• You gain increased credibility with customers, lenders, and partners

• You may unlock strategic tax advantages

Creating this legal separation is one of the most important steps in protecting both your business and your personal finances.

Hawaii Business Entity Options

In Hawaii, businesses can choose from several entity types, including:

• Sole Proprietorship

• General Partnership

• Limited Partnership (LP)

• Limited Liability Partnership (LLP)

• Limited Liability Company (LLC)

• C Corporation

• S Corporation

Each structure comes with different tax rules, compliance requirements, ownership flexibility, and liability protection levels.

LLC vs. Corporation in Hawaii

Limited Liability Company (LLC)

An LLC is one of the most popular structures for small and mid-sized Hawaii businesses.

Benefits include:

• Pass-through taxation by default

• Flexible management structure

• Fewer formal compliance requirements

• Strong personal liability protection

LLCs are often ideal for service businesses, consultants, real estate investors, and closely held companies.

Corporation (C Corp or S Corp)

A corporation may be a better fit for businesses planning significant growth or outside investment.

Benefits include:

• Ability to issue stock

• Clear ownership structure

• Potential tax planning advantages

C Corporation

• Pays corporate income tax

• No restrictions on number or type of shareholders

• Often preferred for businesses seeking investors

S Corporation

• Pass-through taxation (profits flow to owners’ personal returns)

• Potential payroll tax advantages

• Must meet IRS eligibility requirements

How to Choose the Right Business Structure in Hawaii

There is no one-size-fits-all solution. The right structure depends on:

• Your projected income

• Whether you plan to hire employees

• Your liability exposure

• Your long-term growth strategy

• Tax planning considerations

Making the wrong choice can lead to unnecessary taxes, compliance burdens, or restructuring costs later.

Start Your Hawaii Business With Confidence

Choosing between an LLC and a corporation — and deciding whether S Corp or C Corp status makes sense — requires more than filing paperwork. It requires strategy.

If you’re starting a business in Hawaii or considering restructuring your existing company, we’re here to help.

Schedule Your Consultation Today

Let’s review your goals and determine the right entity structure for your business.

Call us today or contact us online to get started.
Build your Hawaii business on the right foundation from day one.

As a small business owner you have more important things to do than to keep your own books. We take care of your books for you, so you can get back to the job of running your business and generating profits. We utilize QuickBooks Online to maintain our clients accounting records.  Where needed, we will setup your general ledger and connect your bank accounts and credit card accounts to download on a daily basis.  We will post all of your transactions into their respective general ledger accounts.  When it's time to do taxes.....you're books are set and ready to go!

Each month or quarter we'll do the following things for you...

• Reconcile your bank account
• Generate an income statement
• Generate a balance sheet
• Clean up your general ledger
• Provide unlimited consultations

These tasks form the solid foundation of your small business accounting system. You can customize the package of services you receive by adding payroll, tax planning, tax preparation, or any of our other services.

Bank Reconciliation

Reconciling your business checking account each month allow us to keep your bank account, accounting, and taxes up-to-date.

Having us reconcile your account each month allows you to...

• Identify lost checks, lost deposits and unauthorized wire transactions. 
• Detect and prevent excess/unjustified bank charges and ensures transactions are posted correctly by your bank. 
• Detect and prevent embezzlement of funds from within your company. 
• Know how your business is doing? You can't really know unless all accounts are reconciled and properly accounted for on your financial statement. 
• Manage your cash more effectively. Proper management of funds not only saves money, it makes money for you. 
• Protect yourself. By timely reconciling and promptly objecting to your bank about any unauthorized, fraudulent or forged checks presented to your bank and paid by that bank, you can relieve your agency of responsibility for the shortfall and transfer the risk to the bank. This reason to reconcile alone should be enough. Crime exists. 
• Sleep Better. You will sleep more peacefully at night knowing your bank accounts are reconciled, in balance and that all escrow funds, accounts, checks and disbursed funds are properly accounted for.

Income Statement

An income statement, otherwise known as a profit and loss statement, basically adds an itemized list of all your revenues and subtracts an itemized list of all your expenses to come up with a profit or loss for the period.

An income statement allows you to...

• Track revenues and expenses so that you can determine the operating performance of your business. 
• Determine what areas of your business are over-budget or under-budget. 
• Identify specific items that are causing unexpected expenditures. Like phone, fax, mail, or supply expenses. 
• Track dramatic increases in product returns or cost of goods sold as a percentage of sales. 
• Determine your income tax liability.

Balance Sheet

A balance sheet gives you a snapshot of your business' financial condition at a specific moment in time.

A balance sheet helps you:

• quickly get a handle on the financial strength and capabilities of your business 
• identify and analyze trends, particularly in the area of receivables and payables. For example, if your receivables cycle is lengthening, maybe you can collect your receivables more aggressively 
• determine if your business is in a position to expand 
• determine if your business can easily handle the normal financial ebbs and flows of revenues and expenses 
• determine if you need to take immediate steps to bolster cash reserves 
• determine if your business has been slowing down payables to forestall an inevitable cash shortage

Balance sheets, along with income statements, are the most basic elements in providing financial reporting to potential lenders such as banks, investors, and vendors who are considering how much credit to grant you.

Maintaining a Clean General Ledger

The general ledger is the core of your company's financial records. These records constitute the central "books" of your system. Since every transaction flows through the general ledger, a problem with your general ledger throws off all your books.

Having us review your general ledger system each month allows us to hunt down any discrepancies such as double billings or any unrecorded payments. Then we'll fix the discrepancies so your books are always accurate and kept in tip top shape.

Unlimited Consultations

We are always available to spend time with you so you fully understand how to interpret and utilize the financial information we provide. Our consultations are already included in our price, so please feel free to call us whenever you have a question or concern.  For 2025 our monthly fees start at $550.