Does a Sole Proprietor Need a Business License in Hawaii?

Does a sole proprietor need a business license in Hawaii?
A sole proprietor must also obtain a general excise tax (GET) license, file tax returns, and pay GET on his or her gross business income.
Read more on files.hawaii.gov

You might be wondering if you require a business license if you intend to launch a business in Hawaii. The answer is based on the kind of business you intend to run. A General Excise Tax (GET) license, which is effectively a business license, is needed for sole proprietors in Hawaii.

Any company that sells products or services in Hawaii needs to have a GET license. Both companies that operate online and those that do so from a physical location fall under this category. A GET license must be obtained in order for a sole proprietor operating a business in Hawaii to be able to do so legally.

Sole proprietors must register with the Hawaii Department of Taxation in order to acquire a GET license. You have the option of registering online or through the mail. A tax license number will be given to sole proprietors after they register, and they are required to include it on all invoices, receipts, and other business-related papers.

Some businesses in Hawaii can need extra licenses or permissions in addition to a GET license. Businesses that sell tobacco, alcohol, or firearms, for instance, may need unique licenses or permissions.

Contact the Hawaii Department of Commerce and Consumer Affairs or the Hawaii Department of Taxation for more information if you’re not sure whether your company needs extra licenses or permits.

How Can I Discover Who Owns a Company in Hawaii?

You can use the website of Hawaii Business Express to look for businesses if you’re curious about who owns them there. You can use the website to look up businesses by name, owner, or location.

Simply type the company name or the owner’s name into the search field to start a search. You can learn more about the company from the search results, which include the owner’s name, the location of the company, and the nature of the company.

How Can You Tell If a Business Name Has Been Sought After?

In order to avoid beginning a business in Hawaii using a name that is already in use, be sure to check. On the Hawaii Business Express website, you may perform a name search to see if a business name is already in use.

Simply type the name you’ve picked into the search bar to start a name search. You might find a list of companies with names that are similar in the search results. You will need to choose an alternative name for your company if the one you have chosen is already in use.

What is the price of an LLC in Hawaii?

If you’re thinking about setting up a Limited Liability Company (LLC) in Hawaii, you might be curious about the price. The type of LLC, filing fees, and yearly report fees, as well as other variables, affect how much it costs to incorporate an LLC in Hawaii.

A domestic LLC must pay $50 to file in Hawaii while a foreign LLC must pay $225. Domestic LLCs in Hawaii must also submit an annual report, which costs $15, along with the filing fee.

In comparison to other states, Hawaii has a relatively cheap formation fee for LLCs. But it’s crucial to remember that there are a lot of different things to take into account when selecting whether to form an LLC or a sole proprietorship.

Which is better, a sole proprietorship or an LLC?

Depending on your unique situation and objectives, you must choose between a sole proprietorship and an LLC. Both choices offer pros and drawbacks.

The simplest and least expensive business structure to set up is a sole proprietorship. However, as a sole proprietor, you are liable for all debts and liabilities incurred by the business. This implies that if your company is sued or incurs debt, your personal assets, such as your home or car, could be at danger.

On the other hand, an LLC offers limited liability protection, meaning that your private assets are shielded from debts and liabilities incurred by the corporation. An LLC may also be more appealing to investors and offer tax advantages.

The choice between an LLC and a sole proprietorship should ultimately be based on your unique situation and objectives. Before making a choice, it is crucial to get the advice of a knowledgeable advisor or attorney.

FAQ
How much does it cost to get a business license in Hawaii?

Depending on the kind of business and the county where it is located, Hawaii’s business license fees vary. The price often falls between $20 and $150. However, there can be extra costs if you need to apply for more permissions or licenses, run a specific type of business, or both. It is advised to confirm the exact fees with the relevant county office.

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