It’s hard to name a better backdrop for a new business than the beautiful islands of Hawaii. Hawaii’s environment and culture may be unique, but like any other state, there’s a good chance you’ll need specific licenses before you actually start operating. Below, we’ll outline some of the common requirements and where to find the licenses to get your Hawaii business up and running.
Do you need a business license in Hawaii?
Once you register your business with the Hawaii Department of Commerce and Consumers Affairs (DCCA) Business Registration Division (BREG), you can look into the following licensing requirements:
Hawaii state
While the exact requirements vary by business, these are some of the most common licenses and permits issued at the state level.
- General excise tax license: Required for any business that receives income, with tax rates ranging from 0.5% to 4%, depending on your business activities. You can obtain this license through Hawaii’s Department of Taxation (DOT).
- Regulatory licenses: Some businesses may need to register for state-level regulatory licenses (such as those that sell liquor or tobacco products), which you can also find through the DOT.
- Professional licenses: Issued by the Professional and Vocational Licensing Division, these are certifications for 52 regulated occupations, such as barbers, nurses, realtors, and other specialized roles.
Businesses with employees must also register with the Department of Labor and Industrial Relations for unemployment insurance. While this isn’t technically a license, you’ll need this registration to submit reports and pay unemployment taxes (due quarterly).
If you’d like help identifying the exact state licenses you need—along with the local and federal requirements discussed next—you can get a customized report from LegalZoom for as low as $99.
Local
Hawaii’s local licensing requirements vary by island and business type. The four major counties—Honolulu, Hawai’i, Maui, or Kaua’i—have their own regulations, such as:
- Additional surcharge taxes on top of the state’s general excise tax
- Building permits and zoning clearances for physical business locations
- Specific operational licenses (e.g., for financial institutions, food truck vendors, or used motor vehicle part sales), which are different from professional licenses
You can contact your local county’s government office or visit their website to find this information (more on this later). Likewise, keep in mind that LegalZoom’s business license report automatically includes the local permitting requirements specific to your business.
Federal
Most federal licenses primarily focus on heavily regulated activities—such as alcohol production, commercial fishing, or wildlife involvement, among others. You can review the Small Business Administration’s (SBA) list of federal licenses to determine if these apply to your business and where to apply for them.
In addition, some businesses in Hawaii need to register for an employer identification number (EIN for tax purposes. Even if you aren’t required to obtain an EIN, you might get one to open a business bank account, apply for credit, or avoid using your personal Social Security number (SSN).
How to get a business license in Hawaii in 5 steps
Now that you’re familiar with the general licensing requirements in Hawaii, here’s how to start applying for the ones your business needs:
Step 1: Form your business
If you’ve already formed your business with Hawaii’s BREG, you can skip to the next step. Otherwise, you’ll want to formally establish your business before you apply for any of the next license types.
For most formations, you’ll need to pick a business name, appoint a registered agent to receive legal documents, and file the correct forms with BREG. You’ll also pay the state’s filing fee—for reference, this is currently $50 for LLCs.
Step 2: Obtain an EIN
Once you’ve formed your business, you can apply for an EIN. Hawaii businesses need an EIN if they:
- Plan to hire employees or withhold taxes on income
- File taxes as a partnership or corporation
- Open a business bank account
You can apply for an EIN online through the Internal Revenue Service's (IRS) website, which typically takes just a few minutes. LegalZoom can also help you obtain your federal tax ID if you’d like us to take it off your hands.
Step 3: Apply for Hawaii business licenses
Keep in mind that the exact state licensing requirements depend on your business. Still, you’ll likely need at least one permit: the general excise tax license from the Hawaii DOT, which you apply for online. You can also fill out and mail a BB-1 packet, also known as the State of Hawaii Hawaii basic business application, by clicking on the same link above.
In addition, you can check the DOT's website to see all other tax permits and registrations that may apply to your business.
If your business falls under one of Hawaii’s regulated professions, you’ll also need to apply for the appropriate licenses through the Professional and Vocational Licensing Division.
Step 4: Apply for local permits
Next, you can research and apply for city and county permits—either by contacting the appropriate office or visiting their website.
For reference, here are the county government pages in Hawaii:
Besides working with your city and county directly, you can request assistance from your local Small Business Administration (SBA) office.
Step 5: Apply for federal licenses
If your business operates in a federally regulated industry, make sure you apply for all the necessary licenses required by the various agencies. The exact application and approval process depends on the license, but you should give yourself plenty of time since some may take weeks or months to obtain.
If you have any questions for any of these licensing requirements, don’t hesitate to reach out to an attorney or request a customized license report from LegalZoom.
While optional and not a license, you might also register a trademark for your business name, logo, or slogan with the U.S. Patent and Trademark Office (USPTO). This process can take several months (if not over a year) to complete, so it’s wise to start your registration early if brand protection is important for your business.
After getting your Hawaii business licenses
Once you’ve received all the proper licenses and permits, be sure to follow any requirements to keep them active, such as:
- Public display. If needed, post any professional, tax, or health and safety permits in visible areas at your place of business.
- Maintaining compliance. Follow all local regulations, safety codes, and employment laws specific to your industry to stay in good standing.
- Renewals. Mark your calendar with renewal deadlines (if required) and budget for associated fees.
To avoid surprises, you can sign up for LegalZoom’s Business License Report and Management service. To take it a step further, you can also register for Compliance Filings—we’ll keep track of your obligations and notify you if the licensing requirements ever change.
Getting an HI business license the easy way
As you can see, there’s quite a bit of information to sort through when you go to apply for Hawaii business licenses. Between state, county, and possibly federal requirements, the process isn’t as straightforward (or fast) as you probably want it to be.
Fortunately, nothing says you have to do it all alone. LegalZoom is here to help research your specific requirements, explain which licenses your business needs in Hawaii, and point you directly to the right registration forms—for as low as $99.
FAQs
What should I do before getting a business license?
First, you should register your business with Hawaii’s BREG after verifying your business name is unique. Then, you can gather important information like your EIN and business formation papers (if required) to apply for the necessary licenses.
How much does a business license cost in Hawaii?
The exact cost depends on the business license. For reference, the general excise tax license is $20, while professional or speciality licenses can run more—sometimes hundreds or thousands of dollars.
How do I get a copy of my Hawaii business license?
You can typically access many Hawaii business licenses online through the department that issued them. If this isn’t possible, you can try contacting the office directly to request a paper copy.
Do I need a Hawaii tax ID number?
Yes, most businesses (whether corporations, limited liability companies, or other business entities) need a Hawaii tax ID number if they receive any income from conducting business activities in the state. In addition, many businesses need to register for a federal EIN to pay taxes to the IRS.