How to Syndicate an Apartment Deal in Hawaii

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What is the Hawaii Rule 506 notice filing?
How do you form the deal LLC in Hawaii?
What Hawaii landlord and tenant rules should a sponsor know?
How does the general excise tax affect an apartment deal?
What does Hawaii charge when an apartment building sells?
How does Hawaii property tax work for an apartment building?
Does Hawaii tax the deal LLC or its investors?
How DoorRaise fits in
FAQ

To syndicate an apartment deal in Hawaii, you form the deal LLC (or register an outside LLC with the Hawaii Department of Commerce and Consumer Affairs), raise under Rule 506(b) or 506(c), and file a Form D notice with a $100 fee through NASAA's EFD. The Hawaii detail that most often surprises sponsors from other states is the general excise tax: it applies to residential rent, so it is an operating cost, not a pass-through to tenants unless the lease says so.

This is the Hawaii version of our general syndication guide. It covers what changes when the building, the investors or both are in Hawaii. It is general information, not legal advice.

What is the Hawaii Rule 506 notice filing?

Hawaii treats Rule 506 interests as federal covered securities and asks for a notice: a copy of the SEC Form D and the fee, filed through the NASAA Electronic Filing Depository (EFD) for the Business Registration Division securities office of the Hawaii Department of Commerce and Consumer Affairs. DoorRaise's state data, from NASAA's fee schedule, lists the fee as $100; file within 15 days of the first sale to a Hawaii investor. EFD shows the exact amount before you pay, and that amount wins. See blue sky notice filings and blue sky fees by state.

How do you form the deal LLC in Hawaii?

A Hawaii LLC is formed by filing Articles of Organization with the Business Registration Division of the Department of Commerce and Consumer Affairs; the published fee is $50. Each year the LLC files an annual report, with a $15 fee, in the quarter of its formation. An LLC formed elsewhere that will own Hawaii property registers as a foreign LLC. Confirm fees with the Division before you file. See forming an LLC for a syndication and foreign qualification in the property state.

Hawaii's Residential Landlord-Tenant Code is HRS chapter 521. A security deposit cannot exceed one month's rent, plus a limited pet deposit where allowed, and the landlord returns it, with an itemized list of deductions, within 14 days after the tenancy ends (HRS 521-44). Hawaii changed its eviction notice rules in recent years, so use current forms from the state's Office of Consumer Protection.

How does the general excise tax affect an apartment deal?

Hawaii's general excise tax applies to gross rent from residential leases at 4%, plus a county surcharge on most islands, and the landlord must hold a GET license and file returns. Put it in the operating budget as a percentage of rent. Hawaii also has a transient accommodations tax for short stays; see short term rental units in an apartment syndication.

What does Hawaii charge when an apartment building sells?

Hawaii's conveyance tax is graduated by price and charged at higher rates when the property is not the buyer's home, usually paid by the seller. Put your share in sources and uses.

How does Hawaii property tax work for an apartment building?

Each Hawaii county sets its own property tax classes and rates, and apartment buildings fall into a residential or apartment class depending on the county. Assessors value property each year. Hawaii's property tax rates are low by national standards. Underwrite taxes with the county class and rate for the building. See property tax reassessment in apartment underwriting.

Does Hawaii tax the deal LLC or its investors?

Hawaii taxes income earned in the state, and a partnership may have to withhold for nonresident partners or file a composite return. Ask your CPA early; the investor side is in state tax returns for nonresident syndication investors.

How DoorRaise fits in

DoorRaise helps sponsors raise equity for apartment buildings from their friends and followers under Rule 506(b) or 506(c), and verifies that every investor is accredited before they sign. Investors fund by wire into the deal's escrow account at Enterprise Bank & Trust. By default DoorRaise files the notice in the property's state; the first investor from another state pays that state's filing fee by card when they sign, later investors from that state pay nothing, and the sponsor never fronts it. Sponsors pay a $1,500 setup fee (non-refundable) and a flat $5,000 a year administration fee; see pricing or how it works.

FAQ

How much is the Hawaii Rule 506 notice fee?

$100, per NASAA's fee schedule. EFD shows the final amount before you pay.

Does Hawaii tax residential rent?

Yes. The general excise tax applies to gross rent, at 4% plus any county surcharge.

How long does a Hawaii landlord have to return a deposit?

14 days after the tenancy ends.

What does a Hawaii LLC pay each year?

A $15 annual report fee.

Sources

This article is general information as of November 2026, not legal, tax or investment advice. State laws and fees change: confirm with the state agency and your own attorney before you file. DoorRaise is not a law firm, broker-dealer, investment adviser or funding portal.