Whether we’re talking weather, vacations, or bags of potato chips, all good things must come to an end, and that includes registered agent duties.
There are numerous reasons you might need to give up your Hawaii registered agent role, but only one way to resign.
Registered agents play an important role in the life of an LLC, handling sensitive legal and tax documents, so it’s essential that agents follow proper resignation procedures. Otherwise, you could leave your company with unplanned fines or penalties, and you could be individually liable.
Fortunately, for Hawaii LLCs it is easy.
Follow these steps and the hardest part of your resignation won’t be the process itself, it’ll be saying “so long” to your former business.
Notifying the Hawaii LLC
Under Hawaii state law, you aren’t obligated to inform your LLC before submitting your resignation to the Department of Commerce and Consumer Affairs. You are required to send a letter or email of resignation immediately after officially resigning with the state (according to Hawaii’s Revised Statutes §425R-10).
However, for the sake of a smooth transition, it’s a good idea to speak with your LLC prior to formally resigning. This way, they have time to establish a plan for changing their registered agent and avoiding potential penalties.
Submitting Your Resignation
Soon you’ll be moving on to a new business, a new project, or something else entirely. But first, you have to send a formal resignation to the Hawaii Department of Commerce and Consumer Affairs. Here’s how.
You only need one form – the “Statement of Resignation of Registered Agent” – and doesn’t take much time to complete. It must be either typewritten (using a PDF editor like Adobe Acrobat) or handwritten in black ink. The only information you’ll need is:
- The entity type (LLC)
- The LLC name
- The state/country where the LLC was formed
- Your name
- The name and address of the LLC representative to whom you’ll mail/email your resignation notice.
- Your signature
That’s all there is to it. But don’t send it off quite yet. The Statement of Resignation must be submitted with a $25 fee per entity that you serve. So, include a check made out to “Department of Commerce and Consumer Affairs,” and mail your form to:
Department of Commerce and Consumer Affairs
Business Registration Division
P.O. Box 40
Honolulu, Hawaii 96810
And don’t forget that you need to send an official notice to your LLC, even if you already spoke with them informally about your resignation.
Standard processing time is five business days, although you can pay an additional $25 fee for expedited processing (1-3 business days). Once your resignation is processed, you will remain on file as the LLC’s registered agent for 31 days, unless the company appoints your replacement sooner.
Handing off Your Responsibilities
When you put down your registered agent responsibilities, someone else has to pick them up, or your LLC will lose its good standing with the state. Help your LLC keep its momentum by carefully planning your transition.
This starts with finding a successor who’s ready to take over right away. Even a small gap in registered agent coverage can result in severe penalties. Any Hawaii business entity that goes without a valid registered agent for more than 60 days can be administratively dissolved by the state. Helping your LLC come up with a transition plan beforehand will allow them to avoid dissolution and other penalties.
Once you’ve nominated a replacement, confirm that they meet Hawaii’s registered agent requirements. They must:
- Be an individual or corporation that resides in Hawaii
- Have a physical Hawaii address (P.O. boxes aren’t allowed)
- Have a mailing address in Hawaii
- Be available during general business hours
Business owners are allowed to serve as registered agent for their own LLCs. However, sometimes it’s easiest to have a professional take over responsibilities.
We recommend using a registered agent service, which can take over registered agent duties, freeing up more time for the LLC’s managers to focus on running the business.
You do a lot for your Hawaii LLC. You’re essentially the shield that protects it from fines, the filter that catches important documents, the conductor that keeps it on track with compliance.
Because you play such an important role, it’s crucial that you follow the resignation procedures exactly — and potentially provide a replacement agent for the business. Otherwise, you might find yourself and your LLC in hot water.
Follow this guide and you’ll be totally fine. Soon, you’ll be on to your next project, whether that’s starting a new business in Hawaii or something completely different.