The numbers at a glance
| Hawaii | Delaware | |
|---|---|---|
| Filing fee | $50 | $110 |
| Annual report | $15 (annual) | $300 (annual) |
| Franchise tax min | $0 | $300 |
| Top state income tax | 11% | 6.6% |
| Privacy score | 4/10 | 7/10 |
| Banking accessibility | 7/10 | 10/10 |
| Standard processing | 5d | 10d |
| 5-year total cost | $375 | $3,360 |
On pure 5-year cost, Hawaii comes out ahead by $2,985. But cost is rarely the only factor.
When Hawaii wins
- Very low fees
- You physically operate in Hawaii — staying in-state avoids foreign-LLC qualification costs.
When Delaware wins
- Court of Chancery
- Strong corporate law
- Anonymous members allowed
- Universal bank acceptance
Hidden costs of forming in Delaware from outside
If you live and operate in Hawaii but form in Delaware, you almost always pay both states' annual fees because you must register as a foreign LLC in Hawaii. The advertised cost difference often disappears entirely once foreign qualification fees and dual registered agents are factored in.
Decision framework
- Operating in Hawaii? Form in Hawaii.
- Pure holding company or non-resident? Delaware wins for VC-backed or holding structures.
- Raising VC money? Delaware C-Corp is the standard. Hawaii won't be accepted by most institutional investors.
See the full Delaware guide for Delaware-specific details, or jump to our 5-question quiz to get a personalized shortlist.