Getting a business licence in Hawaii looks different from in many other states because Hawaii doesn’t issue a general business licence. Instead, nearly every business operating in the state needs a General Excise Tax (GET) licence from the Hawaii Department of Taxation. This is because Hawaii taxes gross business income rather than applying a traditional sales tax. Sole proprietors, limited liability companies (LLCs), and corporations all register through the same tax-based system.
If you’re starting a business in Hawaii, you might need additional licences or permits beyond a GET licence. Your chosen trade and the county you plan to operate in will determine what you need.
Below, we’ll discuss the full registration process, from entity formation through your first GET filing, along with the fees you’ll pay, how renewals work for the licence types that expire, and the county-level rules that can surprise business owners.
Key takeaways
Hawaii doesn’t issue a general, statewide business licence. Its General Excise Tax (GET) licence serves as the state’s core business registration, and it applies to nearly all businesses, from corporations to sole proprietorships.
In Hawaii, General Excise Tax (GET) rates vary by county due to local surcharges. Your effective rate will depend on where your business operates.
A General Excise Tax (GET) licence might not be the only documentation you need to run a business legally in Hawaii; county zoning and permit checks are a separate step in the process.
What is a business licence in Hawaii?
Hawaii doesn’t issue a general business licence. Instead, most businesses operating in the state need a General Excise Tax (GET) licence from the Hawaii Department of Taxation. In addition, you might need an occupational licence if you’ll be working in a regulated trade. Depending on where your business is going to be located and what you’ll do, you might also need county permits.
What types of business licences and permits does Hawaii require?
Here are the types of licences and permits your business could need to operate legally in Hawaii:
GET licence: This licence is required for nearly every business, including sole proprietorships. Registering lets the Department of Taxation collect GET on your business’s gross income.
Occupational and trade licences: These are issued through the Professional and Vocational Licensing (PVL) Division of the Department of Commerce and Consumer Affairs (DCCA) for trades such as contracting, cosmetology, real estate, engineering, and healthcare. They are required in addition to a GET licence.
Trade name registration: If you’re going to operate a business under a name other than your own legal name or your registered entity name, you’ll need to file it with the DCCA as a Registration of Trade Name.
County permits: These cover zoning approval, home occupation permits, and health department permits for food-related businesses. They vary depending on the county you choose to operate your business in and the nature of your business.
Federal licences: Only federally regulated activities such as alcohol sales, firearm sales, and interstate transportation need federal licences.
How do you get a business licence in Hawaii, step-by-step?
The licensing process involves a handful of steps. Here’s how it works.
Register your business structure
File with the DCCA Business Registration Division if you’re forming an LLC or corporation. Sole proprietors using their own legal name can skip this step. You can submit your formation documents online via the Hawaii Business Express portal.
Get an EIN
Employer Identification Number (EIN) registration is free and takes minutes online via the Internal Revenue Service (IRS). You’ll need an EIN for tax filings and to open a business bank account.
Register a trade name if you’re using one
File Form T-1 with the DCCA if your business will operate under a name different from your own or your registered entity’s legal name.
Apply for your GET licence
File Form BB-1 through Hawaii Business Express or Hawaii Tax Online. You’ll receive a GET licence number, which you must include on invoices and receipts.
Apply for an occupational licence if your trade requires one
Some occupations require licensing before you can legally take your first client. Check with the DCCA’s PVL Division before you start operating.
Confirm your county’s zoning and permit requirements
Contact your county’s Department of Planning and Permitting to confirm whether you need a home occupation permit, a health permit, or other local approval based on your location and business type.
How much does a business licence cost in Hawaii?
Costs vary widely by occupation and county, especially for health permits and zoning approvals, which are set locally rather than by the state. Here’s what you can expect to pay across the main licence types.
|
Licence type
|
Fee
|
Renewal frequency
|
|---|---|---|
| GET licence | US$20 one-time | None (ongoing tax filings required) |
| LLC registration | US$51 | Annual report, US$15 |
| Corporation registration | US$50 | Annual report, US$15 |
| Trade name registration | US$50 | Every 5 years |
| Occupational licence (varies by trade) | Typically US$30 – US$1,000+ | Typically biennial |
How do you renew a business licence in Hawaii?
After obtaining your GET licence, you won’t need to worry about renewing it; the licence itself doesn’t expire. However, you will have to file a GET tax return monthly, quarterly, or semi-annually depending on your liability tier. Also, an annual reconciliation return (Form G-49) is due by the 20th day of the fourth month following the close of a business’s taxable year. Missing these filings can put your business at risk of penalties.
Trade name registrations last five years and need to be refiled with DCCA before they lapse. Occupational licences through the DCCA’s PVL Division typically renew every two years. The division sends renewal notices by mail. If you let an occupational licence lapse, you won’t be able to legally practice in that trade until you reinstate it, so you’ll want to track the renewal date yourself.
What are Hawaii-specific considerations and common mistakes when getting a business licence?
Hawaii’s licensing system has a few unique traits that business owners need to consider.
Here are some worth noting:
GET applies to gross income, not sales: Unlike sales tax, GET isn’t levied on the customer. Though your business can choose to pass on the cost of GET to the customer, it’s fundamentally a tax levied on you, the business, and it’s based on your total gross income. This means GET can apply to transactions where a traditional sales tax wouldn’t.
Home-based businesses on Oahu need a closer look: Check with the Department of Planning and Permitting about a Home Occupation permit, particularly if the business brings extra traffic, deliveries, or noise into a residential zone; this step is often overlooked.
Vacation rentals are their own category: Honolulu’s Bill 89 and similar county ordinances have frozen or heavily restricted new vacation rental permits since 2019. Several counties require a separate Transient Accommodations Tax (TAT) registration in addition to a GET licence.
A GET licence isn’t the finish line: County-level zoning and permit checks are a separate step, which often stalls the process for people who didn’t expect a local review layer.
How Stripe Atlas can help
Stripe Atlas handles everything you need to legally launch your company – incorporation, Employer Identification Number (EIN), equity setup, and tax filings – so you can fundraise, open a bank account, and start accepting payments in as little as two business days, from anywhere in the world.
Join 100,000+ startups incorporated using Atlas, including startups backed by top investors like Y Combinator (YC), a16z, and General Catalyst.
Get started in minutes with Atlas
The application takes under 10 minutes. You'll choose your company structure, confirm your name is available, add up to four cofounders, set your equity split, and e-sign. Then Atlas takes it from there, including notifying cofounders to sign their documents electronically.
Banking and payments before your EIN arrives
Atlas files your EIN application automatically after incorporation. You don't have to wait – Atlas enables pre-EIN payments and banking so you can start accepting payments and making transactions right away. US founders with a Social Security number (SSN) are typically eligible for expedited IRS processing.
Automatic 83(b) tax election filing
Atlas files your 83(b) election for you – US and non-US founders alike – with US Postal Service (USPS) certified mail and tracking to reduce personal income taxes. You'll get a signed 83(b) election and proof of filing directly in your Stripe Dashboard, with certified mail confirmation.
World-class company legal documents
Atlas provides all the legal documents you need to start running your company, drafted by Cooley, one of the world's leading venture capital law firms, and stores them directly in your Stripe Dashboard. These documents are designed to help you fundraise immediately and ensure your company is legally protected, covering aspects like ownership structure, equity distribution, and tax compliance.
US$2,500 in Stripe credits, plus US$50K+ in partner discounts
Atlas startups get US$2,500 in Stripe product credits for their first year, plus US$50,000+ in partner discounts on essential tools like AWS, Google, Xero, Perplexity, and more. Delaware registered agent service is also included free for your first year.
Learn more about how Atlas can help you set up your new business quickly and easily and get started today.
FAQs about getting a business licence in Hawaii
The content in this article is for general information and education purposes only and should not be construed as legal or tax advice. Stripe does not warrant or guarantee the accuracy, completeness, adequacy, or currency of the information in the article. You should seek the advice of a competent lawyer or accountant licensed to practise in your jurisdiction for advice on your particular situation.