Department of Revenue Portal
Department of Revenue Phone
808-587-4242
Name Reservation Required?
Yes
Taxpayer Portal
Comprehensive State Guide

General Business Information

HAWAII:

When considering whether or not to start a small business, there are several factors to keep in mind while determining where you would start your business. FitSmall Business compiled a 2018 ranking of all 50 states to determine the best states to start a small business, using the following categories:

  • Taxes – This includes corporate, sales, property tax, individual income, and unemployment insurance tax rates. The ranking demonstrates how much you can expect that your business would have to pay in taxes in the state ranked.
  • Labor Market – This category was assessed by including unemployment rates well as education levels (% of adults ages 25 to 34 who have attained at least a bachelor’s degree). This is meant to measure availability of desirable employees and the overall strength of this market in the state ranked.
  • Cost of Living – This includes costs of utilities, grocery, healthcare, housing, and transportation.
  • Quality of Life – This category is based on access to education, physical safety, and healthcare.
  • Cost to Start a Business – Using per capita income in the state ranked, this is meant to evaluate costs to staff your business as well as the per sq. ft/year cost to rent a commercial building.
  • Startup Activity – Meant to illustrate how likely new businesses are to succeed or fail in the state ranked, this represents the # and survivability of new businesses in that state.
  • Access to Capital – This assesses the likelihood of your business attaining startup capital by evaluating the size and # of small business loans granted and by measuring access to capital based on the availability and amount of venture capital funds.

Taking into account these factors, the survey ranked Hawaii 29th out of the 50 states, with each of the categories above ranked accordingly:

  • Taxes: 27 out of 50
  • Labor Market: 11 out of 50
  • Cost of Living: 50 out of 50
  • Quality of Life: 21 out of 50
  • Cost to Start a business: 24 out of 50
  • Startup Activity: 28 out of 50
  • Access to Capital: 34 out of 50

Hawaii has some of the highest labor and living costs as well as lowest availability of human capital in the country, prompting some to encourage any potential new business owner to live on the islands for a year or so first before starting a business in Hawaii. This would allow you time to observe and gain insight into the mindsets of both locals and tourists alike, get to know your potential customers, and understand the competition. It would also give you time to maybe take up surfing, consume some of the 5 billion pounds SPAM consumed by Hawaiians every year, and fall in love with Hawaii’s world-renowned coffee. Is Hawaii the right place for you and your new business?

Hawaii Department of Revenue
PO Box 259
Honolulu, HI 96809
P  808-587-4242

Portal Link

Hawaii Department of Commerce and Consumer Affairs
PO Box 40
Honolulu, HI 96810
P  808-586-2727

Portal Link

Small Business Advocacy
Hawaii District Office
500 Ala Moana Blvd. Suite 1-306
Honolulu, HI
P  808-541-2990

Portal Link

Business Filing Fees

LLC Filing Fee
$50.00
Incorporation Filing Fee
$50.00

Tax Information

Tax Type
Applicable
Rate / Fee
Due Date
Corporate Income Tax
Applicable:
Yes
Applicable:
4.4-6.4%
3/15
Sales Tax
Applicable:
Yes
Rate:
4.00%
Due Date:
20th of the month following the reporting period
Property Tax
Applicable:
No
Rate:
N/A
Due Date:
N/A
Unemployment Tax
Applicable:
Yes
Rate:
2.40%
Due Date:
The end of the month following the end of each calendar quarter
Annual Report Required?*
*(C-Corp & LLC only)
Applicable:
Yes
Rate:
$15.00
Annual reports must be filed during the quarter that contains the registration anniversary date. For example, if you registered on February 14th, then you must file your annual report between January 1 and March 31. The due dates are March 31, June 30, September 30, and December 31.
File Report

Additional Information

New Hire Reporting Required?
Yes
E-Verify Required?
No
Comprehensive State Guide

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