Jake Lawson here. Hawaii does business licensing differently than the mainland—they don’t have traditional sales tax, but they do have something called General Excise Tax that catches most newcomers off guard. Let me walk you through Hawaii’s actual requirements so you don’t overpay for licenses you don’t need or miss ones you do.
Hawaii’s business licensing landscape is unique, even by island standards. There’s no general business license requirement, but there are specific tax registrations you can’t avoid. Here’s how to navigate it all without getting lost in bureaucratic complexity.
Hawaii’s Business License Reality Check
The good news: Hawaii doesn’t require a general business license for all LLCs
The catch: You still need specific registrations and may need industry licenses
The unique part: Hawaii’s General Excise Tax system works differently than mainland sales tax
Bottom line: Your LLC might need zero licenses, or it might need several. It depends entirely on what you do and where you operate.
The One Registration Every Hawaii LLC Needs
Hawaii Tax ID Number (Form BB-1)
Cost: $20
Required for: Every business operating in Hawaii
Includes: General Excise Tax license registration
File through: Hawaii Business Express or by mail
What it gets you:
- Hawaii State Tax ID Number (different from your federal EIN)
- General Excise Tax license (Hawaii’s version of sales tax)
- Legal permission to operate a business in Hawaii
Jake’s insight: This $20 registration is Hawaii’s version of a general business license, even though they don’t call it that. You cannot legally operate without it.
Hawaii’s General Excise Tax: Not Your Typical Sales Tax
Key difference: While most states have sales tax paid by customers, Hawaii’s General Excise Tax is technically paid by businesses on their gross receipts.
How It Actually Works:
- Tax rate: 4% statewide, 4.5% on Oahu
- Who pays: Technically the business, but usually passed to customers
- What’s taxed: Nearly all business income (very few exemptions)
- Filing frequency: Monthly, quarterly, or annually based on volume
Real-world impact: If you charge $100 for services, you’ll typically add 4-4.5% GET and remit that to Hawaii. It functions like sales tax but has broader coverage.
Jake’s advice: Factor GET into your pricing from day one. Most Hawaii businesses add it as a separate line item, just like sales tax on the mainland.
State-Level Occupational Licenses
Hawaii requires specific licenses for regulated professions and industries:
Common Licensed Activities:
- Professional services: Lawyers, CPAs, architects, engineers
- Healthcare: Doctors, nurses, physical therapists, massage therapists
- Beauty services: Barbers, cosmetologists, nail technicians
- Food services: Restaurants, food trucks, catering
- Childcare: Daycare centers, preschools
- Real estate: Agents, brokers, property managers
- Construction: Contractors, electricians, plumbers
Research Your Requirements:
Check the Hawaii Department of Commerce and Consumer Affairs for industry-specific licensing.
If your business isn’t listed: You probably don’t need a state occupational license.
County and Municipal Licenses
Hawaii’s four counties (Honolulu, Hawaii, Maui, Kauai) each have their own licensing requirements:
Common County Requirements:
- Business registration: Some counties require additional business registration
- Zoning permits: If operating from a specific location
- Signage permits: For business signs and advertising
- Building permits: For construction or major renovations
- Health permits: For food service operations
How to Research County Requirements:
- Identify your county: Honolulu, Hawaii (Big Island), Maui, or Kauai
- Visit county websites: Each has business licensing information
- Call directly: County clerks can clarify specific requirements
- Check zoning: Ensure your business type is allowed at your location
Jake’s experience: County requirements vary significantly. Honolulu County (Oahu) tends to have more requirements than the neighbor islands.
Federal Licenses (Most LLCs Don’t Need These)
Good news: Most Hawaii LLCs don’t need federal licenses.
Businesses That DO Need Federal Licenses:
- Transportation: Airlines, shipping companies, trucking
- Broadcasting: Radio, TV, telecommunications
- Financial services: Banks, investment advisors, money transmitters
- Agriculture: Interstate transport of plants/animals
- Firearms/explosives: Sales, manufacturing, importing
- Alcohol/tobacco: Manufacturing, importing, distribution
Everyone else: Just needs a federal EIN (Employer Identification Number) from the IRS.
Hawaii LLC Licensing Costs: Real Numbers
Guaranteed Costs (Every LLC):
- Hawaii Tax ID registration: $20
- Federal EIN: Free (apply directly through IRS)
Possible Additional Costs:
- State occupational licenses: $50-$500+ (varies by profession)
- County business registration: $25-$100 (if required)
- Zoning permits: $50-$200 (location-dependent)
- Health permits: $100-$300 (food service)
- Professional licenses: $100-$1,000+ (doctors, lawyers, etc.)
What Most Simple LLCs Actually Pay:
Service businesses (consulting, online): $20 (just the tax registration)
Retail businesses: $20-$120 (tax registration plus possible county permits)
Professional services: $120-$520 (tax registration plus professional license)
Food service: $220-$420 (tax registration plus health permits)
Industry-Specific Guidance
Online/Digital Businesses:
- Required: Hawaii Tax ID registration ($20)
- Likely needed: General Excise Tax collection on Hawaii customers
- Probably not needed: Additional licenses unless you’re in regulated industry
Retail Businesses:
- Required: Hawaii Tax ID registration ($20)
- Likely needed: County business registration, zoning clearance
- Consider: Resale certificates if buying wholesale
Service Businesses:
- Required: Hawaii Tax ID registration ($20)
- Depends on service: Professional licensing for regulated services
- Location-dependent: Home occupation permits if working from home
Food Service:
- Required: Hawaii Tax ID registration ($20)
- Always needed: Health department permits, food handler certifications
- Location-dependent: County permits, zoning approvals
Construction/Trades:
- Required: Hawaii Tax ID registration ($20)
- Usually needed: Contractor’s license, workers’ compensation insurance
- Project-dependent: Building permits, environmental clearances
The Hawaii Home-Based Business Exception
Good news: Hawaii is relatively friendly to home-based businesses.
What You Can Usually Do From Home:
- Online businesses and e-commerce
- Consulting and professional services
- Small-scale crafts and art sales
- Tutoring and educational services
What Typically Requires Commercial Location:
- Food preparation and sales
- Retail with customer visits
- Manufacturing with employees
- Services requiring special zoning
Home Occupation Requirements:
- Zoning compliance: Check if your neighborhood allows home businesses
- No employees: Most counties limit home businesses to family members
- No signage: Restrictions on business signs at residential properties
- Parking: Can’t impact neighborhood parking availability
Common Hawaii Licensing Mistakes
Mistake #1: Assuming No Licenses Are Needed
Problem: Even simple businesses need the $20 tax registration
Solution: Every Hawaii LLC must register with Department of Taxation
Mistake #2: Forgetting About General Excise Tax
Problem: Not collecting GET on sales to Hawaii customers
Solution: Understand GET applies to virtually all business income
Mistake #3: Ignoring County Requirements
Problem: Missing local permits and registrations
Solution: Research your specific county’s requirements separately
Mistake #4: Paying for Unnecessary License Services
Problem: Companies charge $99+ for simple registrations
Solution: File the $20 tax registration yourself through Hawaii Business Express
Mistake #5: Not Understanding GET vs. Sales Tax
Problem: Incorrect pricing and tax collection
Solution: GET is broader than typical sales tax—plan accordingly
Your Hawaii LLC Licensing Action Plan
Phase 1: Essential Registration (Week 1)
- File Form BB-1 through Hawaii Business Express ($20)
- Obtain federal EIN directly from IRS (free)
- Research your industry for occupational licensing requirements
- Identify your county and research local requirements
Phase 2: Industry and Location Research (Week 2)
- Professional licenses: Apply if in regulated profession
- County registration: File if required by your county
- Zoning verification: Ensure business type allowed at location
- Health permits: Apply if food service or similar
Phase 3: Ongoing Compliance Setup (Week 3)
- Set up GET filing system (monthly/quarterly/annual)
- Create license renewal calendar for periodic renewals
- Establish record-keeping system for tax and licensing
- Open Hawaii business bank account using registrations
Phase 4: Business Launch Preparation (Week 4)
- Verify all licenses received and properly displayed
- Test GET collection system if applicable
- Review insurance requirements (workers’ comp, liability)
- Complete final business setup tasks
GET Filing and Compliance
Filing Frequencies:
- Annual: Under $4,000 in annual gross receipts
- Semi-annual: $4,000-$24,000 in annual gross receipts
- Quarterly: $24,000-$120,000 in annual gross receipts
- Monthly: Over $120,000 in annual gross receipts
GET Collection Tips:
- Add as separate line item (like sales tax)
- Use current rates: 4% general, 4.5% on Oahu
- Collect on total sale including shipping, handling
- File even if zero activity during some periods
When to Get Professional Help
Handle Yourself:
- Basic tax registration (Form BB-1)
- Simple county business registration
- Federal EIN application
- Basic GET filing
Consider Professional Help:
- Complex multi-county operations
- Regulated professional services
- Food service with multiple permits
- Construction with multiple trade licenses
- Multi-state tax implications
Definitely Get Help:
- Healthcare practice licensing
- Financial services registration
- Import/export businesses
- Manufacturing with environmental permits
The Bottom Line on Hawaii Licensing
Hawaii’s licensing requirements are manageable once you understand the system. The $20 tax registration is mandatory for everyone, and additional licenses depend on your specific business and location.
Key insights:
- No general business license, but tax registration is required
- General Excise Tax works differently than mainland sales tax
- County requirements vary significantly between islands
- Most simple service businesses need minimal licensing
- Professional and food service businesses face more requirements
Budget realistically: $20-$500 covers most Hawaii LLCs’ licensing needs, depending on industry and location.
Start with essentials: Get your tax registration first, then research industry-specific requirements.
Ready to Get Licensed in Hawaii?
File your Hawaii Tax Registration →
Research occupational licenses →
Get my complete Hawaii LLC guide →
Download my Hawaii business setup checklist →
Questions about Hawaii business licensing or running into issues with specific permit requirements? Contact me directly—I’ve helped dozens of Hawaii entrepreneurs navigate the islands’ unique business requirements without overpaying for unnecessary services.
Legal Disclaimer: This information is for educational purposes only and doesn’t constitute legal or tax advice. Hawaii business licensing requirements can change over time and vary by location and industry. Always verify current requirements with appropriate Hawaii agencies and consult qualified professionals for specific legal and tax matters.