Although Hawaii is a well-liked tourist destination, it’s also a fantastic area to launch a business. You might be asking if you need a company license to operate if you are an independent contractor in Hawaii. The solution is more complicated than you may imagine. A general excise tax license is often required if you are conducting any type of business activity in Hawaii.
The main business license in Hawaii is the general excise tax license. All enterprises, including independent contractors, that carry out any type of business activity within the state must comply. For most enterprises, the general excise tax rate is 4.5%, though it might vary based on the type of operation. The tax rate, for instance, is 0.15% for insurance commissions and 0.5% for wholesale sales.
Hawaii has a sales tax in addition to its general excise tax. However, some enterprises, such those that engage in retail sales and the letting of short-term lodgings, are exempt from the sales tax. Hawaii’s 2021 sales tax rate is 4.712%.
You should be aware that there is an additional county surcharge on top of the regular excise tax and sales tax if you are an independent contractor situated in Oahu. The surcharge, which is 0.5%, is levied as a tax by the State of Hawaii on all transactions made on Oahu.
And finally, even if you’re reselling things, you might still have to pay taxes. A retail general excise tax license must be obtained in Hawaii if you are in the business of selling tangible personal property. The general excise tax on your sales may be collected and remitted with the help of this license. In conclusion, you must obtain a general excise tax license if you are an independent contractor in Hawaii. All companies that conduct any kind of business activity in the state must have this license, and the tax rate varies based on the type of operation. Additionally, there is a county premium that you must pay if your place of residence is Oahu. And finally, even if you’re reselling things, you might still have to pay taxes.
Yes, depending on the state you are selling in, you could require a resale certificate to sell on Amazon. It is advised to check with the state’s Department of Revenue or a tax expert to see if you need one because each state has its own requirements for resale certificates. A resale certificate may occasionally be required by Amazon before letting you sell a certain product.