How to Get a Hawaii Business License

Do I Need a Hawaii Business License?

Since you’re likely familiar with driver’s licenses, you already have a basic understanding of business licenses. Both types are issued by the government to ensure you’re qualified and to hold you accountable for your actions.

Here are the Hawaii state business licenses to be aware of:

A General Excise Tax License applies to anyone who “receives income from completing business activities in the state of Hawaii.” Translation — if you’re running a business, you need this tax license.

Depending on your occupation, you might also need a state or county-level business license. Local governments sometimes require business owners such as mechanics and accountants to prove their knowledge or experience in their field before running a business (we'll address that later on). There also are Hawaii business licenses for selling specific items, such as cigarettes.

In the next section, we’ll cover how to get the business licenses that apply to you.

How to Get a Business License in Hawaii

1. Apply for your General Excise Tax License.

Every business owner needs to apply for a tax license in Hawaii. It’s a simple three-step process to get it going. Here’s what you need to do:

1. Go to the state’s Hawaii tax online site and click on “Register New Business License” under the “Services” header.
2. Click on the “BB-1 Basic Business Application” header and follow the application instructions.
3. Submit a one-time $20 registration fee.

2. Check for state and local license requirements.

After completing your Hawaii state business license application, you need to check for occupation-specific requirements. State and local governments set their own rules, so you need to check each applicable site to make sure you haven't missed anything.

Check these sites to find statewide requirements that may apply to you:

• The Department of Taxation lists Hawaii business licenses for liquor and cigarette sales, along with permits related to the travel industry, like hotels.
• The Department of Commerce and Consumer Affairs has links for the departments of agriculture, health, and transportation.
• The Professional & Vocational Licensing Division directs you to boards for many occupations, including cosmetology, contracting, architecture, and more.

Next, you need to check for county licensing requirements. Here are links to get you started:

• Honolulu
• Hawai’i
• Kaua’i
• Maui and Kalawao

Keep in mind that you may need a Hawaii state business license, local license, or both. If you live in the County of Maui, you can refer to this business guide. Examples help make abstract ideas more concrete, so let’s explore a scenario.

Let’s say you want to open a pawn shop in Maui. You would, of course, need a General Excise Tax License. There are no state-level Hawaii business licenses for pawnbrokers, but you would need one from the County of Maui.

3. Have information handy for your application.

After you’ve done the hard work of finding Hawaii state requirements for your new venture, it’s time to apply. Here are the main things you’ll likely need for your application.

Exam results or proof of knowledge/experience. Not every Hawaii business license requires an exam or proof of education, but some might. For example, a taxicab driver in Maui needs to pass an exam, and athletic trainers in the state need to prove their education.

Personal information. Your application may ask for your name, address, phone number, criminal record, and SSN (if your business is a sole proprietorship).

Business details. Your application also will need your business name, address, Certificate of Insurance (COI), if applicable, and your Federal Employer Identification Number (EIN) for taxes.

4. Submit your application.

Depending on which types of Hawaii business licenses you need and which department oversees them, you may be able to apply online, via mail, or in person. You can file for General Excise Tax License applications online, but occupation-specific ones might not have that option.

When it’s time to apply, be sure to read application instructions carefully. Sending all of your supporting documentation in with your application will make the process go faster.

Another item to look out for is renewals. The fees and cadence will vary, but you’ll probably need to update your Hawaii state business license to keep your business legally running for years to come.

How Much Does It Cost to Get a Hawaii Business License?

You’ll likely need to submit an application fee when you send in your materials for a Hawaii business license. The exact amount varies and may change in the future, but here are a few examples to give you an idea of what to expect:

• A General Excise Tax License is $20, a one-time fee
• A hotel with ten rooms (or more) needs to pay a one-time $15 fee for a Transient Accommodations Tax Certificate of Registration
• Electricians and plumbers pay a $40 application fee, but also must pay a $102-$306 license fee once they’ve passed their exams
• Barbers pay a $20 application fee and $37 registration fee

Hawaii State Business License + Insurance Requirements

There’s one final, vital item to cover before we send you on your way. As you explore your license requirements and application, you might find a business insurance requirement. Some business owners need to carry general liability insurance before starting their business.

For example, a bicycle tour operator in Maui needs a $3 million insurance policy. Governments sometimes require businesses to carry a policy that may cover accidents, third-party property damage, and more.

Even scenarios that don’t require business insurance, it’s always a good idea to have it. A single accident in your business could land you in the middle of a lawsuit, complete with legal fees and damages.

If you’d like to get an insurance policy quickly and efficiently before applying for a Hawaii business license, we can help. Simply Business’s free quote comparison tool helps you find custom quotes in just a few minutes.

You’re Building Your Business One Step at a Time

Unclench your jaw, drop your shoulders, and take a deep breath. Reviewing everything you need to do to set up your business can be daunting. But remember that you don’t need to do it all at once or build a business alone.

Use the guide above to tackle a few tasks a day, and before you know it, you’ll have your Hawaii business licenses in hand. Once you’re ready to move ahead in your journey, we’ll be here to support you. You can check out our other guides to starting your business, or talk to our helpful support team about insurance for your growing brand.

Know that with hard work and perseverance, you’ll look back on this time and be grateful for the effort you put into it. It’s time to grow!