How to Start a Business in Hawaii (2026)

Fact-checked by the LegalGlass editorial team against primary sources · Published Aug 6, 2026 · Last updated Aug 6, 2026

To start a business in Hawaii you register your entity with the Department of Commerce and Consumer Affairs (an LLC's Articles of Organization cost $50), obtain a General Excise Tax (GET) license for a $20 one-time fee, and get a free federal EIN. Hawaii's GET rate is 4% statewide – 4.5% on Oahu with the county surcharge.

Step 1: Choose a Structure and Register the Entity

Your first decision is the legal structure. A sole proprietorship needs no state formation filing, while an LLC or corporation is created by filing with the Department of Commerce and Consumer Affairs (DCCA), Business Registration Division (BREG). Hawaii has no separate Secretary of State; DCCA handles business registration.

A domestic LLC files Articles of Organization (Form LLC-1) for a $50 fee, online through Hawaii Business Express or by mail. The filing names the company, its registered agent with a Hawaii address, and its members or managers. The name must be distinguishable from existing entities on the DCCA record. An LLC gives you a liability shield that a sole proprietorship does not; see how to form an LLC for the national overview and the glossary for terms.

Before you file, confirm the name is available and reserve it if needed, and decide whether you will manage the LLC yourself or appoint a manager, because Form LLC-1 asks for that. Hawaii processes online filings faster than paper, and expedited service is available for an added fee if you need approval quickly. Keep the stamped Articles of Organization once approved; banks and vendors will ask for them. If you are unsure whether an LLC or sole proprietorship fits, weigh the liability shield against the extra filings, and review single-member LLC basics.

Step 2: Register for the General Excise Tax (GET)

Hawaii does not have a conventional sales tax. Instead it imposes the General Excise Tax (GET) on the gross income of nearly every business activity, and the business – not just retailers – is liable for it. The GET rate is 4% statewide, rising to 4.5% on Oahu because of the county surcharge; other counties may add smaller surcharges.

Before you make sales or earn business income, you must obtain a GET license by filing Form BB-1, the Basic Business Application, with the Hawaii Department of Taxation. The license carries a $20 one-time fee. Form BB-1 also lets you register for other tax accounts at the same time, such as employer withholding and the transient accommodations tax if you rent lodging. Because GET applies broadly, most Hawaii businesses need this license – confirm your specific obligations with the Department of Taxation.

Because the GET is charged on your gross income rather than on the buyer, many Hawaii businesses "visibly pass on" the tax by adding a small percentage to invoices, but the legal liability to remit it stays with the business. The Department of Taxation assigns a filing frequency – monthly, quarterly, or semiannual – based on your expected tax, and you also file an annual GET reconciliation. Register before your first sale; operating without a GET license can lead to penalties. If you sell to customers on multiple islands, track the county surcharge that applies to each transaction.

Step 3: Get a Federal EIN

An Employer Identification Number (EIN) is a free federal tax ID issued by the IRS. You need one if your business has employees, is taxed as a partnership or corporation, or owes certain excise taxes; a single-member LLC or sole proprietor without employees may use a Social Security number but usually gets an EIN anyway to open a business bank account.

Apply online through the IRS for immediate issuance, or by mail or fax on Form SS-4. There is no charge, and you should be wary of third-party sites that charge for what the IRS provides free. See our step-by-step how to get an EIN guide. With your EIN and GET license, you can open a dedicated business bank account, which is essential for keeping the LLC's liability protection intact.

Keep your EIN confirmation letter (the IRS CP-575) with your permanent records, since banks and licensing agencies frequently request it. If your responsible-party information later changes, the IRS asks you to update it on Form 8822-B. One EIN covers the entity for federal purposes; you do not need a new one simply because you open additional locations. Pairing the EIN with a dedicated business bank account is the practical step that keeps your Hawaii business's finances – and its liability shield – clearly separate from your personal money from day one.

Step 4: State Income Tax and Employer Obligations

Hawaii imposes a state individual income tax with graduated brackets, and business profit from a pass-through entity such as an LLC or sole proprietorship flows onto the owner's Hawaii return. The Department of Taxation administers these taxes alongside the GET. If your LLC elects corporate treatment, it may owe Hawaii corporate income tax instead.

If you hire employees, you must register for withholding tax with the Department of Taxation and for unemployment insurance with the Department of Labor and Industrial Relations, and carry workers' compensation and temporary disability insurance as Hawaii law requires. Self-employed owners also owe federal self-employment tax of 15.3%. For entity-level detail, see business tax basics.

Hawaii's graduated income-tax brackets mean higher earners pay a higher marginal rate, so budget accordingly and make estimated payments if you expect to owe. Employers face several parallel obligations: withholding, state and federal unemployment insurance, and Hawaii's mandatory temporary disability insurance and prepaid health-care coverage, which are unusual among the states. Getting payroll set up correctly from the first hire avoids costly corrections later. Self-employed owners without employees still owe federal self-employment tax, so factor that 15.3% into your pricing and reserves.

Step 5: Licenses, Permits, and County Rules

Hawaii does not issue a single general statewide business license; the GET license functions as the baseline tax registration for most businesses. However, many professions and industries – contractors, real-estate agents, cosmetologists, food handlers, and others – require occupational licenses through the DCCA's Professional and Vocational Licensing Division. Verify whether your field is regulated before you begin.

Counties (Honolulu, Hawaii, Maui, and Kauai) and specific activities may require additional permits, such as zoning approvals, health permits, or signage permits. Check with your county and the relevant state agency. For a broader checklist, see business licenses and, if you operate under a trade name, our DBA overview.

Even without a general business license, some activities need state-level approval before opening: liquor sales, food establishments, childcare, and construction all have their own permitting tracks. Because Hawaii's counties administer many land-use and health rules, the same business may need both a state professional license and a county permit. Build a short checklist for your specific industry and location, and contact the relevant agency early, since some approvals take weeks. Our national business license guide and the DBA overview outline the common categories to check.

Ongoing Compliance for a Hawaii Business

After launch, an LLC or corporation must file an annual report with DCCA and keep a registered agent on file; the report is due in the quarter that contains the anniversary of registration. You must also file and pay GET returns on the schedule the Department of Taxation assigns (monthly, quarterly, or semiannually) and reconcile with an annual GET return.

Keep your business and personal finances separate, renew any professional and county licenses, and pay federal and state estimated taxes if you are self-employed. If you eventually close the business, formally dissolve the entity and cancel your GET license rather than letting them lapse. Staying current avoids penalties and keeps your entity in good standing.

Set calendar reminders for your DCCA annual report and your GET return due dates, because missing either can trigger penalties or loss of good standing. If your business circumstances change – a new address, a new registered agent, or added members – update the DCCA record promptly so the public register stays accurate. Should you pause or wind down operations, cancel the GET license and file the appropriate dissolution documents rather than simply stopping, which leaves obligations open. Consistent compliance is far cheaper than reinstating a lapsed entity or resolving back-tax notices later.

Frequently Asked Questions

How much does it cost to start an LLC in Hawaii?

Filing Articles of Organization (Form LLC-1) with the DCCA costs $50. A GET license adds a $20 one-time fee, and a federal EIN from the IRS is free. Professional or county licenses may cost extra.

What is the General Excise Tax in Hawaii?

The GET is Hawaii's tax on business gross income, charged at 4% statewide and 4.5% on Oahu. Nearly every business must obtain a GET license by filing Form BB-1 and pay GET on its receipts.

Does Hawaii require a general business license?

No. Hawaii has no single statewide business license. The GET license serves as the baseline tax registration, but many professions and counties require their own occupational licenses or permits.

Where do I register a business in Hawaii?

You register with the Department of Commerce and Consumer Affairs (DCCA), Business Registration Division, usually through Hawaii Business Express online. Tax registration is handled by the Hawaii Department of Taxation.

Do I need an EIN to start a business in Hawaii?

You need an EIN if you have employees or are taxed as a partnership or corporation. Sole proprietors and single-member LLCs without employees may use an SSN, but most get the free EIN to open a bank account.

Related

• How to form an LLC (cluster hub)
• How to form an LLC in Hawaii
• Hawaii registered agent
• How to get an EIN
• Sole proprietorship in Hawaii
• Business licenses
• Business tax basics

Sources

1. Hawaii DCCA – Domestic Limited Liability Company Registration (Form LLC-1; $50).
2. Hawaii DCCA – Business Registration Division (BREG).
3. Hawaii Business Express – Online Business Registration.
4. Hawaii Department of Taxation – General Excise Tax (GET) Information (4% / 4.5% rates).
5. Hawaii Department of Taxation – Basic Business Application (Form BB-1) ($20 GET license).
6. Hawaii Department of Taxation – County Surcharge on GET (Oahu 0.5%).
7. Hawaii DCCA – Professional and Vocational Licensing (PVL).
8. Hawaii Department of Taxation – Withholding Tax (employers).
9. IRS – Get an Employer Identification Number (free EIN, online application).
10. IRS – About Form SS-4 (Application for Employer Identification Number).
11. IRS – Limited Liability Company (LLC) (federal default tax classification).
12. IRS – About Schedule C (Form 1040) (profit or loss from business).
13. IRS – Self-Employment Tax (Social Security and Medicare Taxes) (15.3% rate).
14. IRS – Business Structures (choosing an entity).
15. Cornell Law LII – Limited Liability Company (LLC) (legal overview).

LegalGlass provides general information for educational purposes and is not a law firm or a substitute for advice from a licensed attorney or tax professional. Fees and tax rates change; verify current requirements with the Hawaii DCCA and the Hawaii Department of Taxation before acting.