How to Get a Business License in Hawaii: A Step-by-Step Guide
Starting a business in Hawaii requires obtaining the necessary licenses and permits to operate legally. While Hawaii does not have a general statewide business license, most businesses must register with the state and obtain local permits. This guide will walk you through the steps to get a business license in Hawaii, ensuring you comply with state and local regulations.
Step 1: Choose Your Business Structure and Register Your Business
Decide on Your Business Structure
Before applying for a business license, you must determine your business entity type. Common structures include:
- Sole Proprietorship: Easy to start, but no personal liability protection.
- Partnership: Suitable for businesses with multiple owners.
- Limited Liability Company (LLC): Offers liability protection with flexible taxation.
- Corporation: More complex but provides strong legal protection.
Register Your Business with the Hawaii Department of Commerce and Consumer Affairs (DCCA)
If you are forming an LLC, corporation, or partnership, you must register your business with the Hawaii Business Registration Division (BREG) under the DCCA.
- Useful Link: Register your business at Hawaii Business Express.
Register a Trade Name (If Needed)
If you plan to operate under a name different from your legal business name, you must register a Doing Business As (DBA) name, also known as a trade name in Hawaii.
- Useful Link: Register a trade name with the DCCA at Hawaii Business Express.
Step 2: Obtain a Hawaii Tax License (General Excise Tax License)
What is a General Excise Tax (GET) License?
In Hawaii, most businesses must obtain a General Excise Tax (GET) License instead of a traditional sales tax permit. The GET is a tax on gross income from business activities, including retail sales, services, rentals, and commissions.
How to Apply for a Hawaii GET License
You can apply for a GET license online through the Hawaii Department of Taxation.
- Useful Link: Apply for a GET license at Hawaii Tax Online.
- Application Fee: $20 one-time fee.
Step 3: Check Local County Business License Requirements
Unlike some states, Hawaii does not issue a general state-level business license. Instead, licensing requirements depend on the county where your business operates.
Business Licensing by County
Each county in Hawaii has different regulations for business licenses, permits, and zoning approvals.
- Honolulu County (Oahu): Some businesses may need special permits (e.g., home-based businesses).
- More Info: Honolulu City & County Business Licenses
- Maui County (Maui, Molokai, Lanai): Certain businesses require county permits, such as construction and hospitality businesses.
- More Info: Maui County Business Licenses
- Hawaii County (Big Island): Some industries require special county licenses, such as food establishments.
- More Info: Hawaii County Business Licenses
- Kauai County (Kauai): Certain businesses need local permits and health department approvals.
- More Info: Kauai County Business Licenses
Tip: Contact your local county office to confirm licensing requirements for your specific business type.
Step 4: Obtain Industry-Specific Licenses and Permits
Depending on your industry, you may need additional state or federal permits. Here are some common examples:
Professional and Occupational Licenses
Certain professions require licensing from the Hawaii Professional & Vocational Licensing Division (PVL). Examples include:
- Real estate agents
- Contractors
- Accountants
- Healthcare professionals
- Barbers and cosmetologists
- Useful Link: Check licensing requirements at Hawaii PVL.
Food and Beverage Businesses
Restaurants, food trucks, and catering businesses must obtain a Food Establishment Permit from the Hawaii Department of Health.
- Useful Link: Apply at Hawaii Department of Health – Food Safety.
Short-Term Rentals & Vacation Rentals
If you plan to operate an Airbnb, VRBO, or other short-term rental, you may need a Transient Accommodations Tax (TAT) License and a special county permit.
- Useful Link: Learn more at Hawaii Tax Online.
Step 5: Check Zoning and Home-Based Business Rules
Before opening your business, ensure your location complies with Hawaii zoning laws. This is especially important if you plan to:
- Operate a business from home.
- Open a retail or office space.
- Start a food-related business.
Each county has its own zoning rules and requirements. Contact your local planning department for details.
- Honolulu County Zoning: https://www.honolulu.gov/dpp
- Maui County Zoning: https://www.mauicounty.gov
- Hawaii County Zoning: https://www.hawaiicounty.gov
- Kauai County Zoning: https://www.kauai.gov
Step 6: Obtain Federal Permits (If Required)
Some businesses require federal licensing, including:
- Alcohol & Tobacco Sales: Register with the Alcohol and Tobacco Tax and Trade Bureau (TTB.gov).
- Trucking & Transportation: Apply for a U.S. Department of Transportation (DOT) number.
- Import/Export Businesses: Register with U.S. Customs and Border Protection (CBP.gov).
Step 7: Gather Documentation and Submit Applications
Before applying for any license, ensure you have the necessary documents, such as:
- Business registration documents (LLC or Corporation paperwork from the DCCA)
- Federal EIN (Employer Identification Number) from the IRS
- Hawaii GET License
- Industry-specific licenses (if applicable)
Once you have all required documents, submit applications online or through your local licensing office.
Step 8: Pay Required Fees and Renew Annually
Most licenses and permits in Hawaii require annual renewal. Be sure to:
- Mark renewal deadlines in your calendar to avoid late fees.
- Update your business information if any changes occur (e.g., new business location).
- Pay applicable renewal fees to keep your licenses active.
Final Thoughts
Getting a business license in Hawaii is an important step in legally operating your business. While there is no single statewide business license, you must register your business, obtain a General Excise Tax (GET) License, and comply with local county licensing requirements.
If you’re unsure about which licenses you need, consider consulting with a business attorney or contacting Hawaii’s Small Business Development Center (SBDC) for guidance.
Ready to launch your business in Hawaii? Start the process today and set yourself up for success in the Aloha State! 🌺
