Starting a Business in Hawaii: Licenses, Permits & Requirements (2026)

Last updated: October 3, 2026

Starting a business in Hawaii involves choosing a structure, checking operating approvals and setting up the tax and employee accounts your work needs. Use the checklist to make those decisions and find official routes alongside optional services.

Hawaii Business Requirements at a Glance

An LLC is one choice within a larger business setup. Work through the requirements that apply to your activity and address, then choose whether you want paid help with a specific step.

Affiliate links may earn us a commission. Paid providers are optional; official filing routes are included.

Setup step	When it applies & what to budget	Your next step
Choose your business structureChoose first	An LLC can help separate business liabilities from personal assets, but is not required for every business. If an LLC fits, file Articles of Organization with DCCA’s Business Registration Division through Hawaii Business Express. Choose a registered agent and check the standard filing fee and optional expedited charges before submitting. Paid filing and agent services are optional and can cost extra.	Understand Hawaii LLC costs and filing, or use the official state filing route. Optional filing help: ZenBusiness can prepare and submit the LLC formation filing. Review the package and any recurring add-ons. Form an LLC with ZenBusinessAffiliate · Optional provider
Check licenses & your locationDepends on your work	Check county zoning and premises approvals alongside state industry licensing. Food establishments use Department of Health requirements; contractors, salons and other regulated professions use the relevant licensing authority. A GET license or LLC filing does not replace those approvals.	Find your Hawaii industry guide. Check the city or county for the location where you plan to operate.
Register a trading nameIf using an assumed name	Review DCCA’s trade-name registration process if you will use a name different from the legal owner’s name. Entity formation and trade-name registration are separate decisions; keep names consistent on tax, licensing and payment accounts.	Check the name-registration route for your structure.
Get your federal tax IDIf an EIN is needed	An employer identification number (EIN) identifies your business for federal tax purposes. Whether you need one depends on your structure and activities. It is free from the IRS. If forming an LLC or corporation, form it before applying.	Check eligibility and get an EIN free. You do not need to buy an EIN service.
Register for general excise taxBusiness activity dependent	Hawaii’s general excise tax (GET) reaches business income from services and other activities, subject to applicable exemptions. The GET license has a $20 one-time registration fee. Check your activity classification, county surcharge and periodic plus annual return requirements; GET is not a conventional retail sales tax.	Check tax registration and filing requirements.
Arrange business insuranceRequired coverage varies	Hawaii’s workers’ compensation, temporary disability insurance and prepaid health-care laws have separate eligibility and coverage rules. Employers with one or more employees should review all three; buying business liability insurance does not satisfy these employee-benefit obligations. Review liability, professional, property and vehicle coverage separately for your work, contracts and lease.	Check Hawaii workers’ compensation rules. Optional quote service: Simply Business can help you explore business insurance. Coverage and availability depend on your trade and underwriting. Get business insurance quotesAffiliate · Optional provider
Separate money & keep recordsPractical setup	Choose how you will separate business receipts and expenses, reconcile transactions and save tax records. Compare account fees, cash-deposit access and bookkeeping needs. Account-opening documents depend on the provider and business structure.	Prepare your formation or trading-name documents and tax ID, then compare business accounts. Set up a recordkeeping routine before your first payment.
Put customer agreements in writingDepends on your service	Agree on the work, price, payment dates, exclusions and cancellation terms before starting. A general service-agreement template may help with routine work; regulated or complex jobs can need specific contract terms or legal review.	Optional document service: use LawDepot to customize a service agreement, then check that it fits your work. Create a service agreementAffiliate · Optional provider
Set up invoices & paymentsChoose your payment method	Decide how customers will pay and when invoices are due. Compare transaction fees, hardware costs and payout timing. Buying a particular payment service is not a state requirement.	Optional payment service: explore Square for accepting customer payments and compare its fees with your expected sales. Explore Square paymentsAffiliate · Optional provider
Plan startup costs & cash reservesBorrowing is optional	Add filing costs, equipment, insurance and operating expenses before deciding whether to borrow. Financing options depend on revenue, time in business, credit and lender criteria. A new, pre-revenue business may not qualify.	Optional comparison service: SuperMoney Business Financing lets you explore funding options, subject to eligibility. Compare total repayment cost and payment frequency. Compare business financingAffiliate · Optional provider
Prepare for employeesIf hiring	Arrange applicable withholding and unemployment accounts and report new hires. Before pricing labor, account for Hawaii’s temporary disability and prepaid health-care requirements for eligible workers as well as wages and payroll taxes. Verify each program’s employee eligibility rules separately.	Check unemployment registration Review required employee coverage
Calendar reports & renewalsFor your entity and licenses	File your LLC’s annual report with DCCA and keep the registered agent and addresses current. Follow your assigned reporting period and fee. GET returns, trade-name renewals, professional licenses and local approvals follow separate schedules.	Check the official reporting and renewal guidance. Paid filing help is optional and may cost extra.

Need the detailed instructions? Continue below for state filings, employer obligations and links to the licensing agencies.

How to Start a Business in Hawaii (Step by Step)

Step 1: Choose Your Structure and Register It

An LLC is one option, not a requirement for every business. Compare ownership, liability and ongoing obligations before choosing. If an LLC fits your plans, the filing instructions below apply; our Hawaii LLC guide explains the costs and options.

File Articles of Organization online at Hawaii Business Express (HBE), the DCCA Business Registration Division’s filing portal. Cost: $50 standard, plus an optional $25 expedited review for 1-2 day turnaround. Standard processing runs 3-5 business days. Hawaii also accepts paper filings by mail at DCCA BREG, P.O. Box 40, Honolulu, HI 96810, but online is strongly preferred.

LLC name requirements: Must include “LLC,” “L.L.C.,” or “Limited Liability Company” and must be distinguishable from any existing entity in BREG records. Use HBE’s name search before filing — Hawaii has tighter name conflicts than many mainland states because the entity database includes a number of long-running native trade names.

Registered agent: Required for any Hawaii LLC. Must have a physical Hawaii street address (no P.O. boxes); must be available during normal business hours. You can serve as your own agent if you live in Hawaii, or use a commercial service for $49-$150/year — common for mainland operators registering a Hawaii LLC remotely.

Annual Report: Hawaii LLCs file a $15 annual report (Form C5 for domestic LLCs, Form C6 for foreign LLCs) during the calendar quarter of the formation anniversary. The report can be filed up to two months before the deadline. BREG sends a paper reminder, but the responsibility is yours — failure to file leads to administrative dissolution. Set a calendar reminder.

Trade Name (DBA): Optional, registered separately under HRS Chapter 482. Trade name registration costs $50 and is valid for five years from filing; renewal is $50. Useful if your LLC’s legal name is “1234 Ventures LLC” but you operate as “Aloha Sparkle Cleaning.”

EIN: Get your free federal Employer Identification Number at IRS.gov. Required for the GET license, payroll, and any business banking.

Step 2: Register for the General Excise Tax (GET)

Hawaii does not have a traditional retail sales tax. Instead, every business operating in Hawaii must register for and remit General Excise Tax (GET), administered by the Hawaii Department of Taxation.

How to register: File Form BB-1 (Basic Business Application) through Hawaii Tax Online (hitax.hawaii.gov). The one-time license fee is $20. Online processing is 5-7 business days; mail-in is 4-6 weeks.

2026 GET rates:

• 4.0% state rate — the “all others” rate that applies to retail and most services
• 0.5% county surcharge — currently in effect in all four counties through December 31, 2030 (Honolulu, Hawaii County, Kauai through 2030; Maui through 2030 as well, effective from January 1, 2024)
• = 4.5% combined on most service and retail revenue performed in Hawaii
• 0.5% reduced rate applies to wholesaling, manufacturing, and certain producer activities — the county surcharge does not stack on this lower rate
• Maximum visible pass-on rate if you itemize GET on customer invoices: 4.7120% per Hawaii Department of Taxation guidance, slightly higher than 4.5% to account for the gross-receipts compounding

The mainland operator surprise: GET applies to services. Cleaning labor, salon labor, landscape labor, professional services, and most other services that mainland states exempt from sales tax are all subject to GET in Hawaii. There is no service exemption and no small-business GET exemption.

Filing frequency: The Department of Taxation assigns monthly, quarterly, or semi-annual filing based on your gross income. Most new businesses start on quarterly filing. Returns are filed periodically on Form G-45 and reconciled annually on Form G-49. Late filing penalties begin at 5% of tax due plus interest at approximately 0.667% per month.

Step 3: Set Up the Hawaii Worker-Protection Stack — PHCA, TDI, Workers’ Comp

Hawaii layers three separate worker-protection mandates on every employer. All three trigger at one employee or at the 20-hours-per-week threshold for PHCA. None have analogues in most mainland states.

Workers’ Compensation (HRS Chapter 386)

Required for any employer with one or more employees — full-time, part-time, seasonal, or family. There is no minimum payroll, hours, or industry threshold under HRS 386. Hawaii has a competitive workers’ comp market — Hawaii Employers’ Mutual Insurance Company (HEMIC) is the largest carrier but multiple private insurers underwrite Hawaii risks. Coverage must be in place before the employee’s first day. Cleaning, hotel, construction, and landscape rates are higher than mainland averages because Hawaii’s injury rates and benefit levels are slightly above national norms.

Prepaid Health Care Act — HRS Chapter 393

Hawaii’s PHCA, in force since 1974, is the defining employer mandate of doing business in Hawaii and exists in no other U.S. state. Any employer must provide a state-approved health insurance plan to every employee who works 20 or more hours per week for four consecutive weeks and earns at least 86.67 times the current Hawaii minimum wage in a month (with the $16/hour minimum effective in 2026, that threshold is $1,386.72 per month — easily met by any worker doing 20+ hours).

• Employer share: at least 50% of the monthly premium
• Employee cost cap: employees may not pay more than 1.5% of monthly wages toward their employee-only premium — substantially stricter than the federal ACA “affordability” cap
• Waiting period: coverage must begin no later than four weeks after the employee crosses the eligibility threshold
• Approved plans: Hawaii’s major carriers — HMSA, Kaiser Permanente, UHA Health Insurance, HMAA — all offer PHCA-compliant plans approved by the DLIR Prepaid Health Care Council

For a small employer with two part-time workers each at 22 hours/week, PHCA is not optional and can run $300-$500 per employee per month for the employer share alone.

Temporary Disability Insurance — HRS Chapter 392

Hawaii is one of only five U.S. states that requires statutory short-term disability coverage for non-work-related injury or illness. Eligible employees can collect up to 26 weeks of TDI benefits.

• 2026 employee contribution: 0.5% of weekly wages, capped at $7.50 per employee per week (up from $7.21 in 2025)
• Employer can pay all of the premium or split with employees up to that 0.5% / $7.50 employee cap
• 2026 maximum weekly TDI benefit: $871 (up from $837)
• Coverage: purchased through approved private TDI carriers, or self-insured with DLIR approval

Most Hawaii brokers bundle PHCA, TDI, and workers’ comp into a single quote — pricing is more competitive when bundled and the administration is simpler.

Step 4: Hawaii Minimum Wage and Unemployment Insurance

Hawaii’s statewide minimum wage is $16.00 per hour effective January 1, 2026 under Act 114 of 2022 — a $2.00 jump from the $14.00 rate in effect since January 1, 2024. The next scheduled increase is to $18.00 per hour on January 1, 2028. There is no separate city or county minimum wage in Hawaii — one of the cleaner state-only minimum wage jurisdictions in the U.S.

Tipped employees: The 2026 tip credit is $3.25, allowing a tipped cash wage of $12.75/hour as long as the employee receives tips that bring total compensation to at least $16/hour. Most service businesses pay full minimum wage anyway because tip credit recordkeeping is burdensome relative to the savings.

Unemployment Insurance (DLIR): Register at uiclaims.hawaii.gov within 20 days of your first employee hire.

• 2026 taxable wage base: $64,500 per employee (up from $61,800 in 2025)
• 2026 new-employer rate: 2.40% under Schedule C
• Experienced employer rates: 0.0% to 5.6% based on benefit-charging history
• Employment and Training (E&T) assessment: additional 0.01% on taxable wages

New hire reporting: Report every newly hired or rehired employee to the Hawaii Child Support Enforcement Agency (CSEA) — a division of the Attorney General, not DLIR — within 20 days under HRS 576D-16. Reports include the employee’s name, address, SSN, hire date, and your federal EIN. Submit electronically through CSEA’s online portal or by W-4 transmittal.

Step 5: Industry-Specific Licensing

Hawaii consolidates more occupational licensing under a single agency than most states. The DCCA Professional and Vocational Licensing Division (PVL) oversees most licensed industries, with sector-specific carve-outs for food service, daycare, agriculture, and a few others.

Industry	Hawaii Agency	Notes
Cosmetology, hair, nail, esthetics	DCCA PVL — Board of Cosmetology	1,800 hours cosmetology training; salon establishment + practitioner licenses
HVAC, plumbing, electrical, general contractor	DCCA PVL — Contractors License Board	HRS 444; license required for jobs over $1,500; specialty C-52a Air Conditioning, C-52b Refrigeration
Private investigator and guards	DCCA PVL — Board of Private Detectives and Guards	HRS Chapter 463; 4 years investigative experience required
Real estate, insurance producers	DCCA Real Estate Branch / Insurance Division	Pre-license education + state exam
Food trucks, restaurants, food handlers	County Department of Health — 4 county offices	HRS Chapter 321; HAR 11-50 Food Safety; mandatory commissary; ServSafe-equivalent for PIC
Daycare, child care	Hawaii DHS Child Care Program Office	HRS 346-152; family child care home, group home, group center licenses
Pesticide applicators (landscape, structural)	Hawaii Department of Agriculture — Pesticides Branch	HRS 149A; Commercial Applicator + Restricted Use Pesticide license; Categories include Ornamental and Turf
Landscape — plant material import	HDOA Plant Quarantine Branch	Strictest plant import rules in the U.S.; affects every landscape supply chain

Hawaii’s Unique Tax and Payroll Environment

Four aspects of Hawaii’s tax and payroll structure require specific planning compared to most other states:

1. GET applies to services. Hawaii’s General Excise Tax is fundamentally different from a sales tax. It is technically a tax on the gross income of every business doing business in Hawaii — and unlike most state sales taxes, it applies to services. Cleaning, salon, landscape, and professional service revenue are all subject to GET at 4.5% combined. There is no exemption for services and no small-business exemption. Most mainland operators model their pricing assuming labor is exempt; in Hawaii, you have to add 4.5% (or pass through 4.7120%) to the bill or absorb it.

2. Prepaid Health Care Act is the highest cost shock. The PHCA’s mandate to cover any employee at 20+ hours/week with employer-paid premiums adds $300-$500 per qualifying employee per month — for many small businesses, this is the single largest payroll-related cost difference vs. operating in a non-PHCA state. Hawaii’s “20-hour problem” — where employers carefully limit hours to stay under PHCA — is a real labor-market phenomenon that constrains scheduling flexibility for service businesses.

3. Hawaii personal income tax remains relatively high. Hawaii has a 12-bracket progressive individual income tax with rates from 1.4% to 11%. Act 46 of 2024 (SLH 2024) is implementing one of the largest income tax cuts in Hawaii history through phased standard deduction increases and bracket widening from 2024 through 2031, but the top rate of 11% remains in place. Most small business LLC owners will encounter rates in the 7.2%-8.25% range; the 11% top rate applies to taxable income above $325,000 (single) or $650,000 (joint). C-corporations pay a graduated rate of 4.4% on first $25,000, 5.4% on $25,001-$100,000, and 6.4% above $100,000.

4. Independent contractor classification is fact-based. Hawaii does not use the strict ABC test that California, Massachusetts, and Colorado use. Hawaii applies a common-law right-to-control test that looks at multiple factors: who controls the schedule, who provides tools, who decides methods, whether the worker has other clients, and whether there is a continuing employment relationship. The standard is more flexible than the ABC test in some ways but the audit consequences are equally serious — back UI premiums, back PHCA premiums (potentially the largest exposure), back workers’ comp premiums, and back TDI premiums all flow from misclassification.

Hawaii Market Context: Tourism, Military, Lahaina, Neighbor Islands

Tourism economy at scale. Hawaii receives roughly 9-10 million visitors per year, supporting an outsized service-business ecosystem on Oʻahu (Waikīkī), Maui (Kāʻanapali, Wailea, Kīhei pre-Bill 9), Hawaii County (Kona, Kohala Coast), and Kauai (Poʻipū, Princeville). Hotel cleaning, vacation rental cleaning, food trucks, and resort-area landscaping are anchored to this volume. Tourism vendor programs (hotel chains, AOAOs, vacation rental managers) typically demand $1M-$5M general liability minimums, janitorial bonding, drug screening, and background checks before approving vendors.

Military presence on Oʻahu. Hawaii hosts Joint Base Pearl Harbor-Hickam, Schofield Barracks, Marine Corps Base Hawaii (Kāneʻohe), and several other military installations on Oʻahu. The military population is approximately 50,000 active duty plus dependents and contractors — a stable, year-round demand base for cleaning, food service, daycare, and trades. Federal contractor opportunities require SAM.gov registration plus security/access clearances.

Lahaina rebuild and Maui market shift. The August 8, 2023 Lahaina wildfires destroyed much of the historic town and killed 102 people. Federal and state rebuild funding is flowing through 2026 and beyond; construction, remediation, and post-construction cleaning demand on Maui is meaningful. Combined with Maui’s Bill 9 of 2025 (signed December 15, 2025) phasing out approximately 7,000 apartment-zoned vacation rental units beginning January 1, 2029 in West Maui and January 1, 2031 in the rest of the county, the Maui small-business landscape is shifting away from STR-economy services and toward construction, long-term rental, and resident-population services.

Honolulu Bill 41 STR restriction. On Oʻahu, Honolulu Department of Planning and Permitting Bill 41 (Ord. 22-7, effective October 2022) restricts whole-home short-term rentals (under 90 days) to three resort-zoned districts: Waikīkī, Ko Olina, and Turtle Bay. Outside those zones, legal STR activity is heavily restricted. Operators in Oʻahu’s STR-dependent service segments (cleaning, landscape, HVAC for vacation rental properties) shifted toward long-term tenant cleaning, AOAO common-area work, and residential since 2022.

Neighbor-island distinctions. Each county has its own economic character: Kauai (~73,000 residents) is small-market, agriculturally-oriented (post-sugar diversified ag), with concentrated tourism on the south and north shores. Hawaii County / Big Island (~210,000 residents) is geographically the largest, split between the Hilo east side (government, university, local economy) and the Kona-Kohala west side (resort tourism). Maui County includes Lānaʻi (~3,000) and Molokaʻi (~7,500) as well as Maui itself — Lānaʻi is mostly owned by the Lanai Resorts (Larry Ellison) operation; Molokaʻi has a pointedly local-resident character that affects how outside operators are received. Oʻahu (Honolulu County, ~1.0M) is the only major urban market.

Geographic isolation supply chain. Hawaii imports approximately 85-90% of consumer goods. Materials, equipment, vehicles, and many supplies cost meaningfully more than mainland equivalents because of shipping. HVAC systems, landscape materials, food commissary inputs, and used vehicles all carry a “Hawaii premium” — model this into pricing.

Hawaii Business Guides by Industry

Hawaii plumbing business guide — C-37 plumbing contractor licensing, insurance minimums and startup steps.

Hawaii electrical business guide — C-13 contracting, licensed workers and island logistics.

Every industry has different licensing, permit, and insurance requirements in Hawaii. Choose your business type:

• How to Start a Cleaning Service in Hawaii — GET on cleaning labor, PHCA cost stack, Honolulu/Maui STR market shift
• How to Start a Food Truck in Hawaii — 4-county Department of Health permitting, mandatory commissary, Waikīkī sidewalk-vending zones
• How to Start a Daycare in Hawaii — DHS Child Care Program Office, EOEL state pre-K, HCJDC + FBI background checks
• How to Start an HVAC Business in Hawaii — DCCA Contractors License Board C-52a/C-52b, salt-air corrosion, A2L refrigerant transition, Hawaii’s 100% renewable electricity by 2045 goal
• How to Start a Hair Salon in Hawaii — DCCA Board of Cosmetology, 1,800-hour training, salon establishment license, GET on salon services
• How to Start a Landscaping Business in Hawaii — HDOA Plant Quarantine Branch (defining HI issue), pesticide applicator licensing, native species protection
• How to Become a Private Investigator in Hawaii — DCCA Board of Private Detectives and Guards under HRS 463, recording-consent rules, armed PI firearms permit
• Do You Need an Arborist License in Hawaii? – Hawaii licenses tree work by name – the C-27b Tree Trimming and Removal Contractor license, required over $1,500, with insurance the license forfeits automatically without
• How to Get a Liquor License in Hawaii: Cost & Requirements – four county liquor commissions, not a state agency; a 45-day noticed hearing the neighbors within 500 feet can veto, a manager card in every county, and $1,000,000 liquor liability insurance required by statute
• Hawaii Massage License: Cost & Requirements – 570 hours, the Hawaii State Exam only (no MBLEx, no reciprocity), a real apprenticeship path, and an establishment license that reaches sole proprietors

Key Hawaii Business Resources

Resource	What It Covers
Hawaii Business Express	LLC formation, annual reports, trade name filing
DCCA Business Registration Division	Entity registration, fee schedules, foreign LLC qualification
DCCA Professional and Vocational Licensing	Cosmetology, contractor, PI, real estate, professional licenses
Hawaii Tax Online	GET license, withholding, returns, payments
Hawaii Department of Taxation — GET	GET rate guidance, Form BB-1, county surcharge
DLIR Disability Compensation Division	Workers’ comp, PHCA, TDI
DLIR Unemployment Insurance Division	UI registration, employer rates
Hawaii Child Support Enforcement Agency	New-hire reporting under HRS 576D-16
Hawaii Department of Agriculture	Plant Quarantine, Pesticides Branch
IRS — EIN Application	Free federal EIN online

How Long Do New Businesses Last in Hawaii?

The Bureau of Labor Statistics follows every private-sector establishment in Hawaii from the year it opens. Of the businesses opened in March 2024, 77.1% were still operating one year later. Among those opened in March 2020, 51% reached the five-year mark — in line with the national rate — and 41.9% of the March 2015 cohort made it to ten years.

Two things keep those numbers from reading as grimly as they look. A closed establishment is not always a failed one: the BLS count includes owners who sold, merged, moved, or retired. And the businesses that last, grow — nationally, establishments reaching age ten average 11.7 employees, up from 4.4 when they opened. Rates for every state and 19 industries: business survival rates by state.

Frequently Asked Questions

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

Articles of Organization at the DCCA Business Registration Division cost $50 with an optional $25 expedited review (1-2 day turnaround vs. 3-5 day standard). Hawaii LLCs file a $15 annual report each year during the formation-anniversary quarter. The General Excise Tax license (Form BB-1) is a $20 one-time fee. Trade name (DBA) registration is optional at $50 for a five-year term. Total first-year cost is typically $85-$200 depending on whether you use a paid registered agent service.

Does Hawaii have a sales tax?

No. Hawaii imposes a General Excise Tax (GET) on gross business receipts at 4.0% state plus 0.5% county surcharge in all four counties through December 31, 2030 — a combined 4.5%. Unlike traditional sales tax, GET applies to services (cleaning, salon, landscape, professional services) and is technically a tax on the seller, though businesses commonly pass it on to customers. The maximum visible pass-on rate is 4.7120% per Hawaii Department of Taxation guidance. There is no service exemption and no small-business exemption.

What is the Hawaii Prepaid Health Care Act and does it apply to my business?

Yes, if you have any employee working 20 or more hours per week for four consecutive weeks. Hawaii’s Prepaid Health Care Act (HRS Chapter 393), in force since 1974, requires every Hawaii employer regardless of size to provide a state-approved health insurance plan and pay at least 50% of the monthly premium. The employee may not pay more than 1.5% of monthly wages toward their employee-only premium. PHCA exists in no other U.S. state. Plan to budget $300-$500/month per qualifying employee for the employer share.

When is workers’ compensation required in Hawaii?

Hawaii’s workers’ compensation requirement under HRS Chapter 386 applies to any employer with one or more employees — full-time, part-time, or seasonal. There is no payroll-size or hours threshold. Coverage must be in place before the employee’s first day. Hawaii has a competitive workers’ comp market — HEMIC is the largest carrier, but multiple private insurers underwrite Hawaii risks. Self-insurance is permitted with DLIR approval.

What is Hawaii’s minimum wage in 2026?

Hawaii’s statewide minimum wage is $16.00 per hour effective January 1, 2026 — a $2.00 increase from the $14.00 rate that was in effect from January 1, 2024 through December 31, 2025. Under Act 114 of 2022, the minimum wage is scheduled to increase to $18.00 per hour on January 1, 2028. There is no separate city or county minimum wage in Hawaii. Tipped employees can be paid a $12.75 cash wage if tips bring total compensation to at least $16/hour.

What is the Hawaii state income tax rate for small businesses?

Hawaii has a 12-bracket progressive individual income tax with rates from 1.4% to 11%. LLC owners (pass-through entities) pay Hawaii personal income tax on their share of business income. Most small business owners encounter rates in the 7.2% to 8.25% range; the top 11% rate applies to taxable income above $325,000 (single) or $650,000 (joint). Act 46 of 2024 (SLH 2024) is implementing phased standard deduction increases and bracket widening from 2024 through 2031 — the largest income tax cut in Hawaii history. C-corporations pay a graduated tax of 4.4% on first $25,000, 5.4% on $25,001-$100,000, and 6.4% above $100,000.

Does Hawaii have a general business license?

Hawaii does not have a single general statewide business license. The closest equivalent is the General Excise Tax license (Form BB-1), a one-time $20 registration with the Hawaii Department of Taxation that every business must obtain before transacting in Hawaii. Beyond GET, industry-specific state licenses for regulated professions are issued through DCCA Professional and Vocational Licensing (cosmetology, contractors, private investigator, real estate, etc.) or through sector-specific agencies (county Department of Health for food, DHS for daycare, HDOA for pesticides). Hawaii has no incorporated cities, so there is no separate “city” business license layer for general operations.