Business Licensing
Does a sole proprietor need a business license in Hawaii?
A sole proprietorship in Hawaii has a single owner and can be started without filing or fees. However, you’re responsible for all debts and may need to register a business name. To operate legally, specific licenses and permits may be required which could take 1-2 weeks to obtain and cost about $200.
Tax Obligations
As a sole proprietor in Hawaii, you must handle federal and state tax obligations. This involves acquiring an Employer Identification Number (EIN) from the IRS and filing annual returns. Additionally, you will need to pay the General Excise Tax (GET) on all business activities within the state. Financial record-keeping is essential for tax purposes and consider liability insurance to safeguard personal assets.
Registration and Licenses
Step-by-Step Guides
- Choose an idea
- Register a business name
- Obtain necessary licenses
- Set up accounting
- File taxes
Required Documentation
You can start a sole proprietorship in Hawaii without documents or state fees unless specific business licenses or permits are needed. Choosing to register a fictitious name is optional. Consulting with an accountant may prove helpful for tax-related queries.
Business License Acquisition
To obtain a business license in Hawaii, you must apply with the appropriate licensing agency based on your business location and activities. Every business in the state needs to acquire a General Excise Tax license and a Hawaii Tax Identification Number (HI Tax ID).
Here is what to expect:
- Fill out Form BB-1, the State of Hawaii Basic Business Application
- Pay a one-time $20 registration fee
- Additional costs may apply depending on the tax licenses required
Licensing Information
The table below provides details on the types of licenses required, registration processes, and associated fees:
| Type of License | Who Must Register | Registration Frequency | Associated Fees |
|---|---|---|---|
| (Information not provided) | (Information not provided) | (Information not provided) | (Information not provided) |
Businesses that are already operating and have conducted payroll in the past can locate their Tax ID on official notices or by contacting the Hawaii Department of Taxation. You can register online and receive your tax ID by filing Form BB-1 through Hawaii Business Express. For more information on Hawaii tax IDs, see items 12 – 19 in the Hawaii Tax Facts publication.