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If you plan to set up operations in another state, you will need to either form a totally new business entity in that state or "qualify" as a foreign (that is, out-of-state) entity to do business there. You should discuss with your accountant and attorney which approach makes the most sense for your business because they involve different costs and tax ramifications. It may also depend on whether the owners of the Hawaii company will be identical to the owners of the California company.
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