How to Get Business Licenses in Hawaii | A Comprehensive Guide

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Hawaii Business License

Starting a new business is an exciting venture, but it’s essential to understand the various licenses required to operate legally within Hawaii. Forming an LLC in Hawaii requires licenses, as different industries and locations have specific regulations. This article will provide a comprehensive guide to Hawaii Business Licenses, helping you navigate the process and ensure your new venture complies with all necessary requirements. By understanding the permitting landscape in Hawaii, you can ensure that your business is fully prepared to succeed while avoiding potential legal pitfalls.

Webinarcare Editorial Team will help you easily obtain a business license in Hawaii. You must be guided by all the factors gathered in this article.

How to Get a Business License in Hawaii

What is a Business License in Hawaii?

A business license is a legal authorization, permit, or document that allows a business to operate within a specific jurisdiction, such as a city, county, or state. Hawaii business licenses are issued by Hawaii Secretary of State and ensure businesses comply with applicable laws, regulations, and standards in their respective industries.

A business license protects public health, safety, and welfare by ensuring businesses operate responsibly and lawfully. Acquiring a business license often involves registering the business, paying applicable fees, and meeting specific requirements or qualifications for the type of business.

Business licenses can vary greatly depending on the location and nature of the business. Some common types of business licenses include:

1. General Business License: This is a basic license required for most businesses to operate within a specific jurisdiction, such as a city or county.

2. Professional and Occupational Licenses: These licenses are specific to certain industries or professions, such as healthcare, construction, real estate, or cosmetology, and are typically issued by state licensing boards or agencies.

You must have a professional and occupational license to form Hawaii General Partnership and offer your service. 

Here are some examples of Professional and Occupational Licenses:

  • Medical License: Physicians, surgeons, and other healthcare professionals must obtain a medical license to practice medicine in a specific state. The Hawaii medical board issues this license after verifying the applicant’s education, training, and examination results.
  • Realtor License: To become a realtor in Hawaii, you must obtain a real estate license to buy, sell, or lease properties on behalf of clients. Hawaii has its own real estate commission or board responsible for issuing licenses and regulating the industry.
  • Contractor License: General contractors, electricians, plumbers, and other construction professionals must often have a contractor license to work in Hawaii. 
  • Cosmetology License: Professionals in the beauty industry, such as hairstylists, estheticians, and nail technicians, must obtain a cosmetology license to provide services. Hawaii Boards of Cosmetology oversee licensing and regulations for this industry.
  • Certified Public Accountant (CPA) License: Accountants who wish to become a CPA in Hawaii must designate and provide specific services, such as auditing financial statements and obtaining a CPA license from Hawaii’s Board of Accountancy.
  • Architect License: Architects must obtain a license to practice architecture in Hawaii. This typically involves meeting education and experience requirements and passing the Architect Registration Examination (ARE).
  • Attorney License: Hawaii Business Attorneys must obtain a license to practice law in a particular jurisdiction, typically by passing the state’s bar examination and meeting other requirements set by the Hawaii bar association.

3. Health and Safety Permits: Hawaii businesses involved in food service, hospitality, or other industries directly impacting public health and safety may require specific permits from local health departments or regulatory agencies.

4. Environmental Permits: Hawaii businesses that involve activities that may impact the environment, such as waste disposal, air or water emissions, or hazardous materials handling, may require permits from local, state, or federal environmental agencies.

5. Sales Tax License: Hawaii businesses that sell goods or services may be required to collect sales tax from customers and remit it to the appropriate tax authority. A sales tax license is typically required to collect and remit sales tax legally.

Hawaii business owners must research the specific licensing requirements for their business in their jurisdiction and obtain all necessary licenses and permits to operate legally and avoid potential fines, penalties, or legal troubles.

Requirements For Getting Business Licenses in Hawaii

If you start an LLC or any other type of business, you must wait until your Hawaii business registration is complete. Once you have completed the necessary steps to register your business in Hawaii, you must be prepared with the required documents to apply for business licenses.

  • Name of your company
  • Phone number and company address
  • Employee Identification Number (EIN)
  • Your company’s legal structure (Corporation, Partnership, or LLC)
  • Your business strategy, which includes revenues and costs

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How to Get a Business License in Hawaii

To get a business license, you must follow the guidelines below, including determining if your Hawaii business requires a license or permit, identifying the appropriate licensing agencies, researching license and permit requirements, completing and submitting license applications, and maintaining license and permit requirements.

Step 1: Determine The Required License or Permit

The first step in obtaining a business license is determining if your business needs one. Some businesses may not require a license or permit, while others may need multiple licenses depending on their industry and location. Some businesses typically require some form of licensing or permit:

  • Professional services, such as medical, legal, and accounting
  • Food establishments, including restaurants, bars, and catering businesses
  • Retail businesses, including stores, shops, and online retailers
  • Construction and contracting companies
  • Manufacturing and industrial businesses

State Licenses

The licenses that you must get first are the licenses within the state. Hawaii state licenses require individuals or businesses to engage in certain activities or professions legally. The state government issues these licenses and serves as proof that the license holder has met certain qualifications and standards set by the state. The types of licenses vary depending on the profession or activity, including but not limited to healthcare professionals, contractors, real estate agents, and drivers.

State licenses assure the public that the license holder has undergone the necessary training and education to perform their duties safely and competently.

Federal Licenses

Federal licenses in Hawaii are granted by federal agencies and are required for certain activities and industries that fall under federal jurisdiction. These licenses ensure compliance with federal laws and regulations and are necessary for individuals or businesses engaged in the following services.

  • Agriculture: License issued by The U.S. Department of Agriculture
  • Aviation: License issued by The Federal Aviation Administration
  • Alcohol & Tobacco: License issued by The Alcohol and Tobacco Tax and Trade Bureau
  • Ammunition, Explosive, & Firearms: License issued by The Bureau of Alcohol, Tobacco, Firearms, and Explosives.
  • Commercial Fisheries: License issued by The National Oceanic and Atmospheric Administration Fisheries Service
  • Mining & Drilling: License issued by The Bureau of Safety and Environmental Enforcement
  • Nuclear Energy: License issued by The U.S. Nuclear Regulatory Commission
  • Radio & Television (Broadcast): License issued by The Federal Communications Commission
  • Transportation by Sea: License issued by The Federal Maritime Commission
  • Wildlife & Fisheries: License issued by The U.S. Fish and Wildlife Service

Obtaining a federal license in Hawaii involves meeting specific criteria and adhering to federal laws and regulations, which can vary depending on the activity or industry.

City-Based License

City-based licenses in Hawaii are granted by local municipalities and are required for certain activities or businesses operating within the city limits. These licenses ensure businesses comply with local regulations and ordinances and typically cover business operations, health and safety, zoning, and permits.

City-based licenses vary depending on the location and the nature of the business, but examples may include restaurant licenses, liquor licenses, taxi licenses, and street vendor licenses. Obtaining a city-based license in Hawaii involves submitting an application, paying the necessary fees, and meeting specific requirements set by the local government.

Home-Based License

Home-based licenses in Hawaii are required for individuals or businesses that operate from their residential property. These licenses regulate and permit activities conducted within a residential setting, such as home-based businesses or rental properties. Home-based licenses ensure these activities comply with local regulations, building codes, zoning requirements, and health and safety standards.

The specific requirements for obtaining a home-based license in Hawaii can vary depending on the type of activity and the local municipality but typically involve submitting an application, paying any necessary fees, and meeting specific criteria set by the local government.

Professional License

Professional licenses in Hawaii are mandatory for individuals pursuing specific careers or professions that require specialized knowledge, skills, and expertise. The state government grants these licenses and serves to regulate and ensure the competency and ethical practice of professionals in fields such as law, medicine, engineering, teaching, and accounting.

To obtain a professional license in Hawaii, individuals must meet education, experience, and examination requirements specific to their profession. These licenses assure the public that they receive services from qualified professionals and protect consumers from potential harm or malpractice.

Step 2: Identify the Hawaii Licensing Agencies

Once you’ve determined that your business requires a license or permit, you must identify the appropriate Hawaii agencies responsible for issuing these documents. In Hawaii, numerous agencies oversee licensing and permitting, including:

  • Hawaii Secretary of State: This office is responsible for issuing licenses for many professional services, including legal, medical, and accounting.
  • Hawaii Department of Health: Food establishments, healthcare providers, and other businesses related to health and safety may require licenses from this department.
  • Hawaii Department of Taxation: If your business sells goods, you may need a sales tax license or permit from this department.
  • Hawaii Department of Labor: Businesses that involve construction or contracting may need licenses from this department.
  • Local City or County Governments: Depending on your business’s location, you may also need to obtain licenses or permits from your local government.

Step 3: Research License and Permit Requirements

After identifying the appropriate agencies, research the specific requirements for each license or permit your business needs. This may involve reviewing the Hawaii agency’s website, contacting their office directly, or consulting a legal or business professional. Some common requirements for obtaining a business license or permit include:

  • Completing an application form
  • Providing proof of insurance or bonding
  • Passing background checks or inspections
  • Paying application fees

Some licenses or permits may have ongoing requirements, such as annual renewals, inspections, or reporting.

Step 4: Complete and Submit License Applications

Once you’ve gathered all the necessary information and documents, complete the application forms for each required license or permit. Be sure to carefully follow the instructions provided by each Hawaii agency, as incomplete or incorrect applications can lead to delays or denials.

In addition to the application forms, you may also need to submit supporting documentation, such as:

Proof of Business Registration

You can find it on the Hawaii Secretary of State’s website. There should be a search feature specifically for businesses. This will often be labeled “Hawaii Business Express“. In the search feature, enter the name of the business you are looking for, and once it appears, you will now have proof of your business registration.

Employer Identification Number (EIN)

Aside from opening a bank account, you must have an Employer Identification Number in Hawaii to file and submit for a business license. An EIN, also known as a Federal Tax Identification Number, is used by the Internal Revenue Service (IRS) to identify your business for tax purposes. You’ll need an EIN to open a business bank account, file taxes, and hire employees. 

The application of an EIN in Hawaii can be through the following:

  • Apply Online- The online EIN application is the preferred method for customers to apply for and obtain an EIN.
  • Apply by Fax- Taxpayers can fax the completed Form SS-4 application to the appropriate fax number), after ensuring that the Form SS-4 contains all of the required information.
  • Apply by Mail- The EIN application Form SS-4 can be filed via mail. The processing time frame to receive the mail is four weeks.
  • Apply by Telephone-International Applicants – International applicants may call 267-941-1099 (not a toll-free number) from 6 a.m. to 11 p.m. (Eastern Time) Monday through Friday to obtain their EIN.

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Proof of Insurance, Bonding, or Worker’s Compensation Coverage

To have a business license, you need proof of insurance, bonding, or worker’s compensation. You need to obtain a certificate or policy document as additional documents for your proof of insurance. Also, there is a database of businesses with worker’s compensation coverage or require businesses to register their insurance or bonding information. Visit your Hawaii Department of Labor, Department of Insurance, or another relevant agency website for information about the business’s coverage.

Professional Certifications or Licenses

As I have mentioned, if you will form a general partnership and offer your service, you must have professional certifications or licenses. 

Submit your completed applications and the Hawaii business license fee, which ranges from $50 – $300. The processing times for license and permit applications can vary, so plan accordingly and allow ample time for approval.

Step 5: Maintain License and Permit Compliance

Once you’ve obtained the necessary licenses and permits for your Hawaii business, it’s essential to maintain compliance with all requirements. This may include:

  • Keep your Hawaii licenses and permits current by renewing them on time, typically annually.
  • Reporting any changes to your business, such as a changing Hawaii LLC address. You may amend your Hawaii Articles of Organization if you change anything in your Hawaii business.
  • Maintaining proper insurance, bonding, or worker’s compensation coverage.
  • Complying with any inspection, reporting, or record-keeping requirements.

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Additional Considerations

In addition to the steps outlined above, there are a few additional considerations to keep in mind when navigating the Hawaii business licensing process:

  • Licenses and permits are often industry-specific, so research your business type’s requirements.
  • Some businesses may need licenses or permits from multiple agencies at the state and local levels. Be sure to research and comply with all necessary requirements to avoid complications.
  • If your business operates in multiple locations or across state lines, you may need to obtain licenses or permits for each jurisdiction in which you operate. You can form Hawaii Foreign LLC. 
  • Stay informed about licensing and permitting requirements changes, as regulations can change over time.

FAQs

How can I obtain a business license in Hawaii?
You can start by applying for one online at the Department of Commerce and Consumer Affairs website.
Do I need a business license if I’m operating a small business out of my home in Hawaii?
Yes, you still need to obtain a business license even if your business is based out of your house.
What is the cost of obtaining a business license in Hawaii?
The price to obtain a business license will vary depending on the type of business you have.
Can I start a business in Hawaii without registering it first?
No, you need to register your business before you start doing business in Hawaii.
How long does it typically take to get a business license in Hawaii?
It can take up to a few business days for your application to be processed and for you to receive your license.
What needs to be provided on a business license application in Hawaii?
Several pieces of information are required, including business name, location, type, and proof of eligibility to do business in Hawaii.
Is a general excise tax license the same as a business license in Hawaii?
No, they’re different. A general excise tax license is needed for you to do business in Hawaii, but a business license is your authorization to lawfully conduct your business.
Am I required to be a Hawaii resident to obtain a business license?
No, but you should have an authorized agent who lives in Hawaii for processing any judicial and legal notices.
Does a business license expire in Hawaii?
Every business license must be renewed yearly.
What penalties can I encounter if I’m doing business in Hawaii without a business license?
You can get penalized with fines and even have to court, legal suits and lawsuit actions can take place even the company may got blacklisted too.
Do I need to register for a business license in both the county and state of Hawaii?
First, at the state level with the Department of commerce and after that with the counties local requirement in which your buinsess is located.
Can I apply for a business license in Hawaii as an LLC?
Yes, you can apply to operate your business in an LLC structure when you register your business with Hawaii’s Commerce and Consumer Affairs Department.
Do I need to keep a physical copy of my business license certificate in Hawaii?
No, currently however, digital formats being accepted by the authorities.
How can I find out which type of business license to apply for in Hawaii?
See the selection of effective and target-required primary appropriate category of business types at the Department of Commerce and Customer Affairs website via businessexpress.state.hi.us.
What is the phone number or email address of the Commerce and Consumer Affairs Department in Hawaii for following up my business license application status?
Here’s the phone number and email of their customer service
Can temporary businesses or special seasons producing businesses be issued a business license?
Yes, but a temporary permit is the permit ideal business choose which supports a limited period for a while based upon the event/business you are working for a reserved duration.
Who governs and oversees the licensing and economic regulations of businesses in Hawaii?
State of Hawaii’s Office of Consumer Protection responsible authority operating these licences governed under statutory mandates.
What’s the renewal and due dates for my State license?
July 1, annually.
How do I accommodate more data for my University professional and reference prerequisites?
Add reference letters to validate on required documents sent as proof of qualifications additional evaluation concepts.
Do out-of-state businesses require any additional licenses or permits in Hawaii when they are working on a contract within the state?
Dependent on the character of the company department it may require other forms to be filed in order to satisfy business prerequisites.
Do I need a special license if my business is in the transportation sector?
Yes, if you are running a transport-oriented business like providing limousine service, or are employed as ADU, or a school bus driver, in that case, you require more advanced driver license qualifications and security screening from the Federal and State departments.
Do I need any permits in Hawaii to sell food such as a farmer or baker?
Yes, for operating and serving food supplies or foods according to the standards agreed by standardized regulations.
Is it mandated from all the counties in Hawaii for pursuing business permit processing?
Only to experience in the County of Hawaii usually but not necessarily for islands of Molokai, Maui, Kauai.
As part of my business activities, do I need to be licensed for any emissions or hazardous waste?
If your business produces hazardous waste emissions, you will need to communicate with Hawaii’s Department of Health for the proper licensing.
What industry categories or fields require special/restricted licensing like contractors or professional services?
These are described in Section 2 of Hawaii Revised Settlement Edit 238.
Can a business license in Hawaii apply when I’m doing business overseas?
No, however, you may need other appropriate licences in many cases.
Will Hawaii conduct any inspections on my business as part of the licensing process?
Some submit the floor plans for a commission approval, according to the premises of the business.
Are non-US citizenshipholders eligible to get a Hawaii business license?
Any type of individual or business-like foreign nationals or organisations are eligible to go for licensing in Hawaii but only US citizens are preferred.
Can I attain business licenses for temporary events or specific markets in Hawaii too?
Yes, Temporary permits are fascinating reviving concepts towards the areas of specific markets helped by streamlined documentation processes.
Can we get licensed online via Hawaii business names electronically or using alternative options?
Yes, Hawaii caters for digital licenses functionality via databanking usually with a quick payment option enabled.

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Conclusion

Obtaining the necessary licenses and permits is crucial in starting a new business in Hawaii. Following the steps outlined in this guide and consulting with the appropriate agencies or professionals, you can ensure that your business complies with all state and local requirements. This will protect your business from legal issues and help establish your reputation as a responsible and trustworthy business operator.

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