Hawaii LLC Tax Filing Requirements (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 20, 2026 · Last updated Aug 20, 2026

A Hawaii LLC is not taxed as a separate entity by default: profit passes through to the members' returns. The tax that actually defines Hawaii LLC compliance is the general excise tax (GET), administered by the Hawaii Department of Taxation, which applies to gross business income rather than net profit.

Quick Answer

Entity-level income tax: None by default - Hawaii follows the federal pass-through classification
Main state tax: General excise tax (GET) on gross income, Hawaii Department of Taxation
GET basis: Gross receipts, not net profit - deductions do not reduce it
Registration: Register for a GET license before doing business in Hawaii
Entity filings: Annual report to the DCCA Business Registration Division
Federal EIN: $0 - free from the IRS

How Hawaii Taxes an LLC

Hawaii does not impose a separate state income tax on a limited liability company at the entity level under its default treatment. The LLC's federal classification carries over: a single-member LLC is a disregarded entity whose income is reported on the owner's return, and a multi-member LLC is taxed as a partnership that passes income through to its members. The IRS sets that default under 26 CFR 301.7701-3, and an LLC that wants corporate treatment instead files Form 8832 or, for S corporation status, Form 2553.

That means the income-tax question for a Hawaii LLC is really a question about the members. A Hawaii resident member reports his or her share of LLC income on a Hawaii individual return; a nonresident member generally reports Hawaii-source income. Because the entity itself usually owes no Hawaii income tax, owners sometimes assume there is nothing to file with the state. That is the most common and most expensive mistake in Hawaii, because the general excise tax operates independently of income tax and applies even to an LLC that lost money.

For the national picture of how pass-through entities are taxed, see the business tax hub and what an LLC is. If you have not formed yet, start with how to form an LLC in Hawaii.

The General Excise Tax Is the Main Filing Obligation

Hawaii's general excise tax is not a sales tax. A sales tax is imposed on the buyer and collected by the seller; the GET is imposed on the business for the privilege of doing business in Hawaii, and it is measured by gross income. Because the base is gross rather than net, an LLC with revenue and no profit still owes GET. Hawaii Revised Statutes chapter 237 is the governing law, and the Department of Taxation publishes current rates, activity classifications, and the county surcharge that applies in some counties.

Rates differ by business activity, and a county surcharge may be added on top of the state rate depending on where the business is conducted. Because those rates and surcharges are changed by the Legislature and by county ordinance, confirm the current figure directly on the Department of Taxation general excise tax page before you price your services or file a return. Do not rely on a rate quoted by a third-party site without checking it against the Department.

Practically, the GET affects pricing as much as compliance. Many Hawaii businesses show the tax as a separate line on invoices; Hawaii permits visibly passing the tax on to customers within limits set by the Department, but the legal liability stays with the business regardless of whether it collects the amount from a customer.

Registering and Filing GET Returns

Before doing business in Hawaii, an LLC registers with the Department of Taxation and obtains a GET license. Registration also opens any other tax accounts the business needs - withholding if the LLC will have employees, transient accommodations tax if it rents accommodations short-term, and use tax on out-of-state purchases brought into Hawaii.

Once registered, the LLC files periodic GET returns during the year and a separate annual return that reconciles the periodic filings for the whole tax year. How often the periodic returns are due - monthly, quarterly, or semiannually - depends on the amount of tax the business expects to owe, and the Department assigns the frequency when you register. Confirm your assigned filing frequency and the current form numbers and due dates on the Department of Taxation site; both the thresholds and the forms are updated periodically.

Two filing rules trip people up. First, a periodic return is due for every period in your assigned cycle even if the LLC had zero Hawaii income in that period - a zero return is still a return. Second, the annual reconciliation is a distinct filing, not a substitute for the last periodic return, so skipping it leaves the account open and generates notices.

Federal Returns a Hawaii LLC Files

Federal filing follows the entity's classification, not its state of formation. The table below summarizes the default federal return for each structure.

Structure	Default federal treatment	Primary federal return
Single-member LLC	Disregarded entity	Schedule C (or E or F) with Form 1040
Multi-member LLC	Partnership	Form 1065 plus Schedule K-1 to each member
LLC electing S corporation	S corporation (Form 2553)	Form 1120-S plus Schedule K-1
LLC electing C corporation	Corporation (Form 8832)	Form 1120

An owner who works in the business also owes self-employment tax on net earnings from a disregarded entity or a partnership interest. That is a federal tax collected with the income tax return, and it is separate from Hawaii GET. Estimate it with the self-employment tax calculator, and see self-employment tax in Hawaii for the state context.

Note the IRS treats a single-member LLC as a separate entity for employment and certain excise taxes even while disregarding it for income tax. If your LLC has employees, it uses its own name and EIN for payroll filings.

The Annual Report Is Not a Tax Filing

Separate from tax, every Hawaii LLC files an annual report with the Business Registration Division of the Hawaii Department of Commerce and Consumer Affairs (DCCA). The annual report keeps the entity in good standing and updates the state's record of the LLC's address, managers, and registered agent. It is filed with DCCA, not with the Department of Taxation, and paying GET does not satisfy it.

The report carries a filing fee and a due date tied to the quarter in which the LLC was registered; confirm both on the Business Registration Division site, since the DCCA publishes the current fee schedule and filing window. Missing the report does not create a tax debt, but it can put the LLC out of good standing and eventually lead to administrative termination.

Keeping the two lanes straight is the simplest compliance habit in Hawaii: DCCA for the entity's existence and annual report, Department of Taxation for GET and income tax accounts, and the IRS for the EIN and federal returns.

Licenses, Employees, and Other Accounts

A GET license is a tax registration, not a general business license, and it does not replace any county or profession-specific permit the LLC needs. Construction, food service, health care, and regulated trades each carry their own licensing regimes, and county requirements vary across Honolulu, Hawaiʻi, Maui, and Kauaʻi. See Hawaii business license requirements and the national business license overview.

If the LLC hires, it opens a Hawaii withholding account with the Department of Taxation and registers for unemployment insurance with the Department of Labor and Industrial Relations. It also needs a federal EIN, which the IRS issues free of charge - the IRS warns explicitly that you never have to pay a fee for an EIN.

An LLC that sells to customers outside Hawaii, or that buys goods from out of state for use in Hawaii, should also review the use tax rules, which sit alongside the GET in chapter 238 of the Hawaii Revised Statutes.

Common Hawaii LLC Tax Filing Mistakes

Treating GET as a sales tax. It is a tax on the business's gross income. A business that fails to collect it from customers still owes it, and a business with no profit still owes it.

Skipping zero returns. A periodic GET return is due for every assigned period, including periods with no Hawaii income. Unfiled periods generate estimated assessments.

Missing the annual reconciliation. The annual GET return is a separate filing from the last periodic return of the year.

Confusing the DCCA annual report with a tax return. They are different agencies, different deadlines, and different consequences.

Assuming an S election removes GET. Electing S corporation status changes federal income tax treatment and can reduce self-employment tax, but it does not change GET liability at all. Compare the trade-offs in S-corp election in Hawaii and S-corp vs LLC. When the business ends, close the tax accounts as part of dissolution.

Frequently Asked Questions

Does a Hawaii LLC pay state income tax?

Not at the entity level under Hawaii's default treatment. A Hawaii LLC is a pass-through: a single-member LLC is disregarded and a multi-member LLC is taxed as a partnership, so income is reported by the members. The LLC itself can owe general excise tax, which is a separate tax measured on gross income rather than profit.

What is the Hawaii general excise tax for an LLC?

The general excise tax is a tax on the privilege of doing business in Hawaii, imposed on the business and measured by its gross income under Hawaii Revised Statutes chapter 237. Rates vary by business activity and some counties add a surcharge, so confirm the current rate with the Hawaii Department of Taxation before pricing or filing.

Do I have to file a GET return if my LLC had no income?

Yes. Once you hold a Hawaii GET license, a return is due for every period in your assigned filing frequency, even when the LLC had no Hawaii gross income for that period. File a zero return rather than skipping the period; unfiled periods can trigger estimated assessments and penalty notices from the Department of Taxation.

Is the Hawaii annual report a tax filing?

No. The annual report goes to the Business Registration Division of the Department of Commerce and Consumer Affairs and keeps the LLC in good standing as a legal entity. It is separate from every tax return. Paying general excise tax does not satisfy the annual report, and filing the annual report does not satisfy any tax obligation.

Does electing S corporation status change my Hawaii GET?

No. An S corporation election under IRS Form 2553 changes federal income tax treatment and how owner compensation is characterized. It has no effect on general excise tax, which applies to the business's Hawaii gross income regardless of federal classification. GET registration and returns continue exactly as before.

Does a Hawaii LLC need an EIN?

Any multi-member LLC needs one, and a single-member LLC needs one if it has employees or owes certain excise taxes. Even when not required, most banks ask for an EIN to open a business account. The IRS issues EINs at no cost and limits applicants to one EIN per responsible party per day.

Sources

Hawaii Department of Taxation - General Excise Tax (GET) (tax on business gross income; rates and county surcharge).
Hawaii Department of Taxation - Tax Forms and Publications (current GET forms and instructions).
Hawaii DCCA Business Registration Division - Business Registration (annual report and entity filings).
Justia - Hawaii Revised Statutes chapter 237 (General Excise Tax Law).
Justia - Hawaii Revised Statutes chapter 238 (Use Tax Law).
IRS - Limited Liability Company (LLC) (federal default classification).
IRS - Single Member Limited Liability Companies (disregarded entity; employment and excise tax treated separately).
IRS - About Form 1065, U.S. Return of Partnership Income.
IRS - About Schedule C (Form 1040) (sole-proprietor and disregarded-entity reporting).
IRS - About Form 8832, Entity Classification Election.
IRS - Self-Employment Tax.
IRS - Get an Employer Identification Number (EIN is free; one EIN per responsible party per day).
Legal Information Institute (Cornell) - 26 CFR 301.7701-3 (entity classification election).

LegalGlass provides general information for educational purposes and is not legal advice, is not a law firm, and is not a substitute for advice from a licensed attorney or tax professional. Laws, fees, and thresholds change; verify current amounts with the Hawaii Department of Taxation and the Hawaii Department of Commerce and Consumer Affairs before acting.