Do You Need a Sellers Permit to Sell Online in Hawaii?

Like other US states, Hawaii has particular rules for companies who want to operate within its borders and provide goods or services. You might be asking if you need a sellers permit if you intend to sell online in Hawaii. Yes, you must acquire a general excise tax (GET) license, which in Hawaii also functions as a sales permit.

The gross income of companies and people engaged in commercial activity in Hawaii is subject to the general excise tax. For most firms, the tax rate is 4%, but for other operations, it can go as high as 4.5%. Businesses selling tangible personal property, for instance, are subject to a 4% GET, whereas those offering services (such consulting or design) are subject to a 0.5% GET.

You must get a GET license from the Department of Taxation in order to file for a general excise tax in Hawaii. The license application fee is $20 and can be submitted online or by mail. Depending on your gross revenue, you must file a GET tax return either monthly or quarterly once you have the license.

Making a single-member LLC offers liability protection for the business owner, which is one benefit of doing so. A single-member LLC is exactly what its name implies—a limited liability company with just one member. This means that any liabilities incurred by the business are shielded from the owner’s personal assets. Furthermore, for taxation purposes, a single-member LLC is viewed as a disregarded entity, which means that the firm owner must declare all revenue and expenses on their personal tax return.

Single-member LLCs are recognized by the IRS and are given the freedom to pick their tax treatment. A sole proprietorship is how a single-member LLC is taxed by default, therefore the owner of the business must declare all revenue and outgoing costs on their personal tax return. A single-member LLC does have the option of electing to be taxed as an S-corporation or a corporation.

In conclusion, a general excise tax license, which doubles as a sellers permit, is required if you wish to conduct online sales in Hawaii. For the majority of enterprises, the tax rate is 4%, and you must submit a GET tax return either monthly or quarterly. By creating a single-member LLC, a business owner is given liability protection and the flexibility to decide how they will be taxed. Single-member LLCs are recognized by the IRS and have the option of being taxed as a sole proprietorship, corporation, or S-corporation.