Step 1:
Choose a type of business entity

A business entity is your form of business. The most common forms of business are sole proprietorship, partnership, corporation, S corporation, and limited liability company. Your form of business determines which tax licenses you need, which tax returns you must file, and which taxes you must pay. Read about business entities.

Step 2:
Register with:
-Hawaiʻi Department of Commerce & Consumer Affairs
-(DCCA) (not required for sole proprietorships);
-Internal Revenue Service (IRS) (not required for sole proprietorships, unless they have employees);
-Hawaiʻi Department of Taxation (DOTAX); and
-Hawaiʻi Department of Labor & Industrial Relations (DLIR), if you have any employees as defined by DLIR.

Some businesses (for example, restaurants and childcare providers) need additional permits, licenses, and certifications to operate. For more information, please contact:

-Other state agencies such as Hawaiʻi Department of Health, Hawaiʻi Department of Agriculture, Hawaiʻi Department of Transportation, Public Utilities Commission; and

-The county where you plan to do business. Hawaiʻi has four counties: Hawaiʻi, Kauaʻi, Maui, and Honolulu.

What is a sole proprietorship?

A sole proprietorship is an unincorporated business owned by one individual. It is the simplest form of business. A sole proprietor personally owns the business’s assets and is personally liable for the business’s debts. A sole proprietor reports his or her business's profit or loss on his or her federal and Hawaiʻi income tax returns. A sole proprietor must also obtain a general excise tax (GET) license, file tax returns, and pay GET on his or her gross business income.

Read more.

Most businesses need tax licenses for:

a. General Excise Tax - GET is a tax on your gross business income. When you apply for a GET license, you are also automatically registered for use tax. Use tax is a tax on imports from unlicensed sellers. GET and use tax are reported on the same tax return.

b. Employer's Withholding - If you have employees, you must withhold Hawaiʻi income taxes from your employees’ wages. For more information, see Booklet A, Employer’s Tax Guide.

You may need additional tax licenses (such as transient accommodations; rental motor vehicle, tour vehicle, and car-sharing vehicle surcharge; cigarette and tobacco; liquor; and fuel) depending on your business activities.

Go to https://hitax.hawaii.gov/_/Under Registration, select ‘Register New Business License’ and select BB-1 Business Application and follow the steps.

Register online through the DOTAX website at Hawaiʻi Tax Online.

Complete the Form BB-1, State of Hawaiʻi Basic Business Application, or complete an online application at https://hitax.hawaii.gov/_/ (under ‘Registration’ select ‘Register New Business License’ and pay a one-time $20 registration fee.

Additional fees may apply depending on which tax licenses you need.

Hawaiʻi Small Business Development Center

Small business owners represent the cornerstone of our national and local economy.

Established in 1990, the Hawaiʻi Small Business Development Center is the only state-wide business assistance organization in Hawaiʻi. Our confidential business advising services are provided to our clients at no charge. We are a member of America’s Small Business Development Centers (ASBDC), encompassing over 1,000 full-time business service centers and 5,000 employees providing business advice and training to over 1.25 million clients annually.

Hawaiʻi Island East
Hilo
(808) 933-0776

Hawaiʻi Island West
Kailua Kona
(808) 333-5000

Hawai’i Small Business Development Center Services