One of the first steps you should do when opening a business in Hawaii is to register your business name. This procedure is crucial since it helps to protect your brand and makes sure that no one else in the state is using the same name. We’ll walk you through the procedures in this post for registering a business name in Hawaii and respond to some relevant queries about taxes and licenses.
Select a business name in the first step. Choosing a name that is not in use prior to registering it as a business name in Hawaii is the first step. The Hawaii Department of Commerce and Consumer Affairs Business Registration Division’s internet search engine allows you to look up existing business names. Once you’ve settled on a name, confirm that it complies with the state’s standards for company names. Your company name, for instance, must stand out from those of other businesses in the state and cannot contain any legally forbidden phrases.
Register your business name in Step 2 You must register your business name with the Hawaii Department of Commerce and Consumer Affairs Business Registration Division once you’ve decided on it. You can apply for this either on paper or online using the state’s Business Express website. You must submit information about your company, including its legal structure and the names and addresses of its owners, along with a registration cost of $50.
Step 3: Obtain all necessary licenses or permits You might need to acquire extra permits or licenses depending on the type of business you’re launching. For instance, the Hawaii Department of Taxation will require that you obtain a General Excise Tax license if you intend to sell items in Hawaii. Depending on the specifics of your firm, this license can cost different amounts. You could also require a resale certificate or a company license if you intend to sell on Amazon or Etsy, respectively. Do I Have to Pay Taxes When I Resell Things? In Hawaii, you could need to pay taxes on your sales if you’re reselling goods. A tax on the gross profits of companies that offer products or services in Hawaii is known as the General Excise Tax (GET). Currently, the tax rate is 4%, albeit it varies by geography and business type. By giving your suppliers a valid resale certificate, you may be eligible to request an exemption from the GET if you are selling goods that you have bought for resale. Are Resale Certificates Required to Sell on Amazon? The Hawaii Department of Taxation will provide you a resale certificate if you intend to sell on Amazon as a business. With the use of this certificate, you are able to buy products without having to pay the GET. You must register your business with the state and supply details regarding your business operations in order to receive a resale certificate. Therefore, How Much Does a Sellers Permit Cost in Hawaii? Depending on the type of business you run, the price of a General Excise Tax license, commonly known as a sales permit, varies in Hawaii. The charge for the majority of enterprises is $20 per location where you conduct business. However, some companies could be charged more or have more restrictions.
Do I Need a Business License to Sell on Etsy in Hawaii Regarding This? The Hawaii Department of Commerce and Consumer Affairs may require you to obtain a business license if you intend to sell on Etsy as a business. Depending on the kind of business you run and the area where you are, there are different requirements. If you intend to sell items in Hawaii, you might additionally need to obtain a General Excise Tax license.
In conclusion, the procedure of registering a business name in Hawaii is quite simple, but it’s crucial to adhere to state regulations and acquire any essential licences or licenses. You should also be aware of Hawaii’s tax regulations and resale certificate requirements if you are selling products there. You can make sure that your company is compliant with state requirements and ready for success by taking these actions.