For business owners wishing to establish a presence in Hawaii, registering a business name is an essential first step. The Hawaii Business Express portal can be used to complete the very simple procedure of registering a business name. The kind of business entity, if a GE license is required, and other factors can affect how much it costs to register a business name in Hawaii.
Depending on the kind of business entity, different business names in Hawaii cost different amounts to register. A sole proprietorship can be registered for $25, and a corporation can be registered for $50 to $150. Partnerships pay a $25 registration cost, while limited liability companies (LLCs) pay $50. It’s crucial to keep in mind that these costs only cover the registration of the business name; they do not account for any additional costs that could be necessary for other licenses or permits.
You could additionally require a GE license in order to conduct business in Hawaii, in addition to registering your company name. A general excise tax license, or GE license, enables companies to carry out business operations within the state. You must obtain a GE license if your company makes money in Hawaii. The cost of a GE license is determined by your business’s gross receipts and varies depending on that activity. Most firms pay 4% in taxes, although some sectors may have a different rate.
You can submit an online application via the IRS website to get an Employer Identification Number (EIN) in Hawaii. A business’s EIN is a special identifying number given to it for tax purposes. If you want to file tax returns, recruit staff, or open a company bank account, you must have this number. The EIN application process is free, and you may normally get your number a few days after submitting it.
You might also need to apply for a seller’s permit if you intend to offer goods or services in Hawaii. Businesses that collect sales tax must have this license, which is available through the Hawaii Department of Taxation. A seller’s permit has no fees and has a two-year expiration date.
Hawaii does not require independent contractors to get a business license, but if they make money there, they might need to get a GE license. Independent contractors are not regarded as employees of the companies they work with and must pay their own taxes, it is vital to remember this.
Conclusion: Depending on the kind of company entity, if a GE license is required, and other considerations, the cost of registering a business name in Hawaii can differ. It’s crucial to research the needs of your particular firm and allocate funds accordingly. You can make sure that your business is running lawfully and prevent any future fines or penalties by taking the effort to properly register your company and acquire the required licenses and permits.