Preparing for Sales Tax in Hawaii
After starting your business in Hawaii, begin registering for a sales tax permit. This information is crucial to ensure a smooth and accurate application process. The threshold in Hawaii is $100,000 in annual sales or 200 separate sales transactions. To comply with Hawaii sales tax, register for a sales tax permit.
Understanding Hawaii Sales Tax
Discover the secrets of navigating Hawaii’s sales tax in 2023. Our guide provides expert insights & tips for successful tax compliance. Hawaii has a General Excise Tax (GET) of 4%. Goods that are subject to excise tax include physical property. Some services in Hawaii are subject to excise tax. The GET rate in Hawaii is 4% on retail sales, with an additional 0.5% local sales tax. Wholesale transactions are taxed at 0.5% statewide.
Registering for Sales Tax in Hawaii
If your sales in Hawaii are through a marketplace reseller platform, you need to register for paying sales tax if you meet the $100,000 or 200 transactions threshold. Determine your filing frequency based on your tax liability.
Obtaining a Hawaii Tax ID
Businesses that have run payroll in Hawaii in the past can find their Tax ID on notices received from the Hawaii Department of Taxation, such as the Withholding Tax Return (Form HW-14), or by calling the agency at (800) 222-3229. Apply Online by Choosing Your Entity Type. Once the federal government issues you a tax identification number, you will have to get a state Tax Id Number from Hawaii as well. Here’s a Few Other Tax Documents and Business Permits You May Need When Starting a Small Business. In Hawaii, If you use a name other than your own personal name to operate a business, you are legally required to file a DBA Certificate, also known as a dba (doing business as) form.
Tax Online with the Hawai’i Department of Taxation is the simple and secure way to get a State Tax Identification Number (BB-1), submit tax returns, make payments, manage your accounts, and perform other typical activities with the state’s taxing authority. How do I get a tax ID number for my business in Hawaii? Fill out Form BB-1, State of Hawaii Basic Business Application, and pay a one-time $20 registration fee to become a business owner in Hawaii. You can also apply for a Hawaii state tax ID number by phone. Call the IRS Business and Specialty Tax Line at 1-800-829-4933 and follow the prompts. You’ll need to provide your personal information and business details over the phone. Once you have your Hawaii state tax ID number, it’s important to understand your tax obligations.
- Federal Tax ID Number. Corporations and LLCs as well as partnerships and independent contractors are required to have it but sole proprietors need it to use instead of a social security number. Apply for an Employer Identification Number in Hawaii. There are a few things you need to do to get a FEIN for your business in Hawaii. You can work with the IRS directly or go through a company that is experienced in this process. It is also important to figure out what type of business you will be operating. This includes whether you will be a corporation and need a Corporation Tax ID number, or if you are a sole contractor, partnership, non-profit agency, etc. If you work directly with the IRS, you will have to fill out paperwork either online or in person.