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Hawaii · 2026 · 37 steps · official links

How to start a business in Hawaii

Every step to open an LLC in Hawaii and get ready to hire, in order, with the official state page for each one. Agencies you'll deal with: DCCA Business Registration Division · Department of Taxation · Department of Labor and Industrial Relations (DLIR).

LLC filing fee
$50 (plus $1 State Archives fee)
State sales tax
4%
Seller's permit
$20 one-time fee
Out-of-state sales threshold
$100,000 or 200 sales
Last verified
October 27, 2026

This is the most common path: a new LLC, general business, paying W-2 employees and 1099 contractors. Adding a location, forming a corporation, or in a licensed industry? Customize it and check off steps as you go.

Customize this checklist

Popular Hawaii business types:

Step 1

Set up the business with the state

Do this first. The state tax and payroll accounts ask for your registration details.

Get a federal EIN

Apply free on the IRS website and get the number immediately. You'll need it for the state tax registration, a business bank account, and payroll. Opening a new location? You already have one; the same EIN works in every state.

FederalFreeIRS: Get an EIN

Sign an operating agreement

This internal document sets out who owns what, how decisions get made, and what happens if an owner leaves. It isn't filed with the state, but banks often ask for it, and it helps protect your liability shield. Single-owner LLCs need one too.

Every state

Open a business bank account

Bring your EIN letter, filed formation documents, and operating agreement or bylaws. Keeping business and personal money separate is one of the main things that protects your personal assets.

Every state

Check industry licenses and permits

Many businesses need a license or permit before opening, separate from registering the company. Check three levels: the state licensing board for your field, your city or county, and any federal agency that regulates your industry.

  • Trades and construction: general contractors, electricians, plumbers, HVAC and roofers usually need a state or local license, and often a bond
  • Personal services: salons, barbers, nail and esthetics shops need a shop license plus licensed staff; massage and tattoo studios are licensed too
  • Professional services: accounting, engineering, architecture, law, real estate and insurance require state licenses for the people and sometimes the firm
  • Child care, elder care and home care need a state facility or agency license and background checks
  • Retail with restricted products: alcohol, tobacco and vape, cannabis, firearms (federal FFL), pawn and secondhand dealers
  • Auto, transport and logistics: auto dealers and repair shops, towing, movers, and trucks that need a USDOT number
  • Money and finance: lenders, mortgage brokers, debt collectors and money transmitters are licensed by the state, often through NMLS
  • Local permits for almost everyone: city business license or tax registration, zoning or home occupation permit, sign permit and fire inspection

Decide on S corp tax treatment (optional)

If you want S corp taxation, file IRS Form 2553. The deadline is tight: generally within 2 months and 15 days after the start of the tax year you want it to apply. See Business basics for when it makes sense.

Form your LLC with the state

File Articles of Organization (or the state's equivalent) online through Hawaii Business Express (hbe.ehawaii.gov).

HI$50 (plus $1 State Archives fee)Hawaii: Forming an LLC

Name a Hawaii registered agent

You need a registered agent with a street address in Hawaii to receive legal papers and state notices. Use a registered agent service if you have no one local.

HI

Register a trade name (DBA) if you use a different name

Trade names are registered with the state DCCA Business Registration Division.

HIIf it applies$50

Know Hawaii's formation rules

Expedited review is $25 per filing ($20 for trade names). DCCA warns of processing delays during its move to a new IT system and portal.

HI
Step 2

Register for state taxes

Register with Department of Taxation

Register for GET and withholding on Hawaii Tax Online (hitax.hawaii.gov) or with Form BB-1. The GET license is a one-time $20 fee; a withholding account is free.

  • Employees complete Form HW-4 for state withholding
  • No sales tax. The GET is 4% on retail and most activities, 0.5% on wholesale and manufacturing, and 0.15% on insurance commissions.

Check local taxes and business licenses

Every county adds a 0.5% GET surcharge to the 4% rate through Dec 31, 2030 (Honolulu, Kauai, Hawaii, Maui).

HI

Register for General Excise Tax

Hawaii taxes gross business receipts through the GET instead of a sales tax. Get a GET license ($20 one-time) on Hawaii Tax Online. The rate is 4% on most sales plus a 0.5% county surcharge, and 0.5% on wholesale.

  • Periodic returns due the 20th of the month after the period
  • Annual return due April 20 for calendar-year filers
Step 5

Collect sales tax

Applies if you sell products, or services this state taxes. Most medical care is exempt. See Business basics for sales tax.

Register to collect sales tax

Hawaii calls it a General Excise Tax (GE) License. Register with the Hawaii Department of Taxation through Hawaii Tax Online, or paper Form BB-1 before you make your first taxable sale in Hawaii. You'll collect tax from customers and send it to the state.

  • State rate: 4%
  • Local taxes: All four counties (Oahu, Kauai, Hawaii, Maui) add a 0.5% surcharge through December 31, 2030, making the retail rate 4.5%. The surcharge is reported on the state GET return, and businesses may pass the tax on to customers at up to 4.712%.
  • No renewal listed; it is a one-time registration.
  • Yes. GET applies to gross income from nearly all business activity in Hawaii, including services and professional fees.

Buy items you resell tax-free with a resale certificate

Give your supplier Form G-17, Resale Certificate for Goods so you don't pay tax on inventory you'll resell. The buyer, who must hold a Hawaii GE tax ID, gives it to the seller, and it stays valid until revoked in writing. It lets the seller apply the 0.5% wholesale rate instead of the full rate; the MTC certificate can be used only to claim a lower GE rate, not a full resale exemption. Keep certificates your own customers give you, too.

  • Accepts the MTC Uniform Sales and Use Tax Resale Certificate

Selling into Hawaii from another state? Watch the threshold

Out-of-state sellers must register once sales into Hawaii pass $100,000 or 200 transactions (current or preceding calendar year), even with no office here.

  • Counts gross income or gross receipts from Hawaii, including services used in Hawaii, not just goods.
  • Since January 1, 2020, marketplace facilitators pay GET at the retail rate on sales they facilitate into Hawaii, while their sellers pay GET at the 0.5% wholesale rate on those sales.

Note this Hawaii sales tax rule

GET is a tax on the business, not a sales tax on the buyer, so it is owed even if you do not pass it on; wholesaling is taxed at 0.5% and insurance commissions at 0.15%.

HI
Step 6

Before your first payroll

Applies once you pay W-2 employees who work in this state.

Complete Form I-9 and W-4 for each hire

Form I-9 is never mailed to the government. You keep it in your own files and show it only if ICE or the Department of Labor asks for an inspection.

  • The employee completes Section 1 by their first day of work
  • You review their original documents and complete Section 2 within 3 business days of the start date
  • Keep it for 3 years after the hire date or 1 year after employment ends, whichever is later
  • Store I-9s together, separate from personnel files, so an inspection doesn't expose other records
  • Remote hire? Have an authorized representative check documents in person, or, if you use E-Verify, use the DHS remote video inspection option
  • Also collect a federal W-4 for withholding

Post federal workplace notices

Federal posters (minimum wage, EEO, FMLA if you have 50+ employees, and others) go alongside the state ones.

Register for unemployment insurance with DLIR Unemployment Insurance Division

Register once you pay wages to employees working in Hawaii. Reports and payments are usually quarterly.

  • 2026 new employer rate: 2.4%
  • Taxable wage base: $64,500
  • 2026 uses contribution schedule C, plus a 0.01% Employment and Training assessment. Employers must also provide TDI and Prepaid Health Care coverage.

Set up the state paid leave or disability program

Hawaii requires Temporary Disability Insurance (TDI) for non-work illness, injury, or pregnancy. Employers provide coverage through an insurer or approved self-insured plan. Employees may pay up to 0.5% of wages, capped at $7.50 a week in 2026.

  • 2026 maximum weekly wage base: $1,500.21
  • 2026 maximum weekly benefit: $871
  • Covers employees with 14+ weeks of Hawaii work and 20+ hours per week in those weeks
  • Benefits last up to 26 weeks

Buy workers' compensation insurance

Required at 1 or more employees (full-time or part-time, permanent or temporary). Buy coverage from an insurer authorized in Hawaii, or get approval to self-insure. Employers may not charge employees any part of the premium.

Report each new hire

Report to the Child Support Enforcement Agency (HRS 576D-16). Electronic filers send reports twice a month, 12 to 16 days apart.

HIWithin 20 days

Follow Hawaii pay timing rules

Hawaii's wage payment rules:

  • Pay frequency: At least twice per month, within 7 days after the pay period ends
  • Final pay: Fired: at discharge or next working day. Quit with one pay period's notice: last day. Quit without notice: next regular payday.
  • Overtime: Over 40 hours per week. Employees guaranteed $4,000+ per month are exempt from minimum wage and overtime.
  • Minimum civil penalty of $500 for wage and hour violations (Act 115, 2025).

Pay at least Hawaii minimum wage

$16.00 an hour.

  • Tipped employees: $14.75 ($1.25 tip credit) only if wages plus tips are at least $7.00 above minimum wage
  • Coming up: No change in 2027. Rises to $18.00 on Jan 1, 2028.

Paid sick leave: no general state requirement

No statewide paid sick leave mandate for private employers.

HIIf it applies

Register for Hawaii Retirement Savings Program or certify an exemption

Projected to launch in late December 2026. Covers employers doing business in Hawaii with 1+ employee and no qualified retirement plan in the prior 2 years. Employees are auto-enrolled at 5% into a Roth IRA unless they opt out. Deadlines and penalties not yet published.

HI

Adopt a harassment policy (training recommended)

Hawaii doesn't require harassment training for private employers. A written policy and a yearly refresher are still best practice.

HIIf it applies

Post Hawaii workplace notices

Display the state's required labor law posters where employees can see them, along with the federal posters. Workers' comp notices come from your carrier.

Provide health coverage under the Prepaid Health Care Act

Employers must offer health insurance to employees working 20+ hours a week after 4 consecutive weeks who earn at least 86.67 times the minimum wage per month ($1,386.72 at $16.00). The employer pays at least half the premium; the employee's share is capped at 1.5% of monthly wages.

  • Small employers with fewer than 8 covered workers may get help from a special fund
  • Fines are the greater of $25 or $1 per employee per day

E-file W-2s if you file 10 or more

Since Jan 1, 2026, employers filing 10 or more W-2 or HW-2 forms in a year must file them electronically with the Department of Taxation.

Step 7

Paying 1099 contractors

Collect a W-9 before the first payment

The W-9 gives you the contractor's legal name and tax ID for their 1099. Check the classification first: if you control how and when they work, they may legally be an employee.

Send Form 1099-NEC to contractors

File with the IRS and send the contractor a copy by January 31. For payments made in 2026 and later, the reporting threshold is $2,000 per contractor per year (it was $600 before).

FederalDue Jan 31
Step 8

Stay in good standing

Recurring deadlines. Put these on your calendar now.

Skip the FinCEN BOI report (U.S. companies are exempt)

FinCEN's final rule, effective August 14, 2026, permanently exempts companies formed in the U.S. from beneficial ownership reporting. Ignore letters or emails demanding a BOI filing fee; they're a common scam. Only companies formed outside the U.S. still file.

File the Annual Report

Keeps your business in good standing with the state. Missing it can lead to penalties or dissolution.

HIEvery year during the calendar quarter set by your registration date. File any time in that quarter.$12.50 online for LLCs and corporations; $10 late fee per year delinquentHawaii: Annual report (summary)

Know your state business taxes

All businesses pay the General Excise Tax (GET) on gross receipts, in addition to income tax.

HI

File quarterly unemployment reports and withholding returns

File unemployment wage reports each quarter and state withholding returns on the schedule you're assigned (if the state has income tax), plus the annual W-2 reconciliation.

HIQuarterly

File sales tax returns on time

Form G-45 is filed monthly if annual GET is over $4,000, quarterly if $4,000 or less, or semiannually if $2,000 or less, due the 20th after the period ends. Everyone also files the annual Form G-49, due April 20 for calendar-year filers. File a zero return if you had no sales; skipping it can bring penalties.

HI

Deadline calendar

Recurring dates for Hawaii and federal filings. A payroll service handles most payroll lines, but you should know they're happening.

WhenWhatFiled with
Jan 15, Apr 15, Jul 15, Oct 15Quarterly withholding return (HW-14) dueHawaii
Jan 31W-2/HW-2 to employees and the Department of TaxationHawaii
20th of month after periodPeriodic GET return dueHawaii
Apr 20Annual GET reconciliation (calendar-year filers)Hawaii
Your registration quarterDCCA annual report due ($12.50 online)Hawaii
Jan 1, 2028Minimum wage rises to $18.00Hawaii
Assigned scheduleSales tax return (file a zero return if no sales)Hawaii
Jan 31W-2s to employees and SSA (with W-3); Form 940; 4th-quarter Form 941IRS / SSA
Jan 311099-NEC to contractors and IRSIRS
15th monthlyFederal payroll tax deposit (monthly depositors)IRS
Apr 30 · Jul 31 · Oct 31Form 941 for the quarterIRS
Jul 31Form 5500 or 5500-SF, if you sponsor a 401(k) (Oct 15 with Form 5558 extension)DOL (EFAST2)

Last verified: October 27, 2026

Common questions

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

The Hawaii state filing fee for an LLC is $50 (plus $1 State Archives fee). That's the fee to form your LLC with the state. Expect other costs too, such as a registered agent service if you use one, licenses, and annual filings. See the checklist above for each step.

Do I need a seller's permit in Hawaii?

You need to register to collect sales tax in Hawaii if you sell taxable products or services there. The state rate is 4%, and local taxes may add to it. Registration cost: $20 one-time fee.

When does an out-of-state business have to collect Hawaii sales tax?

Out-of-state sellers must register once their sales into Hawaii pass $100,000 or 200 sales a year. Having an employee or office in Hawaii also creates nexus right away.

What does a Hawaii business have to file after it opens?

Recurring filings include: file the Annual Report; file quarterly unemployment reports and withholding returns; file sales tax returns on time. The deadline calendar above lists the dates.

Checklists for every state

This guide organizes official requirements. It isn't legal or tax advice. Fees, forms, and deadlines change, so confirm on each linked state page before you file, and talk to an attorney or CPA about your specific situation.