Starting a service business in Hawaii comes down to four things: picking a structure, registering with the state, getting licensed for your trade, and setting up a way to bill customers. Filing an LLC in HI costs $50, ongoing reporting is $15/yr, sales tax is 4% GET (not traditional sales tax), and personal income tax runs 1.4%–11%. Below is the full sequence, the fees you should budget for, the licenses most trades need, and the deadlines that catch new Hawaii owners off guard.
Most new registrations come out of Honolulu — local business licenses are issued at the city or county level, so check yours after the state filing clears.
| Item | HI cost |
|---|---|
| LLC / entity filing (one-time) | $50 |
| Annual / periodic report | $15/yr |
| Federal EIN (IRS) | Free |
| Sales tax registration | Typically free |
| Trade / professional license | Varies by trade |
| Local business license | Set by city / county |
Fees change — confirm current amounts with the HI Secretary of State and the Hawaii Department of Taxation.
Choose your structure and file with the HI Secretary of State ($50). Get your free EIN from the IRS the same day.
Register for Hawaii sales tax with the Hawaii Department of Taxation, then open a business bank account under the registered name.
Apply for your trade license and local business license. This is usually the longest step: General Excise Tax (GET) license; Professional license.
Get general liability insurance (and workers' comp before your first hire), then set up estimates and invoicing so you can bill the day you're cleared to work.
LLC Filing Fee
$50
Annual Report
$15/yr
Sales Tax
4% GET (not traditional sales tax)
Income Tax
1.4%–11%
Choose business structure
Register with DCCA
Get EIN
Register for GET
Get county permits
Open business bank account
Hawaii uses GET (General Excise Tax) instead of sales tax — it applies to gross income
GET is charged on services AND goods
A 4% tax on gross business income — unlike sales tax, it applies to nearly everything including services.
Online LLC filings with the HI Secretary of State are typically processed in a few business days, and an EIN from the IRS is issued immediately online. Trade licensing and local permits usually take longest — plan on two to six weeks before you're fully cleared to work, depending on your trade.
No — you can operate as a sole proprietor in Hawaii and still invoice customers legally. An LLC ($50 to file, $15/yr) separates your personal assets from business liability, which matters most once you're on customer property, hiring help, or signing contracts.
Hawaii sales tax is 4% GET (not traditional sales tax). Materials and goods are commonly taxable, while labor treatment depends on the type of work, so bill parts and labor as separate lines and register with the Hawaii Department of Taxation before you start collecting.
Open a business bank account under the registered name, then invoice from a tool that applies HI tax per line item and accepts cards. Glo Invoice sends invoices by text with a one-tap pay link, and Tap to Pay lets you charge on site before you leave the job.