No matter what kind of business you will be developing, you’ll need to address legal structure and EIN. Getting an Oʻahu business license is one step. Here are tips for figuring out both of these vital subjects:
- Legal structure-Before registering your business, you’ll need to decide what kind of business entity (legal structure) is best for you. For a description of legal structures, visit forms of business organization.
- Employee Identification Number (EIN or FEIN)–Employers with employees, business partnerships, and corporations must obtain an Employer Identification Number (EIN) from the U.S. Internal Revenue Service. Even if you are a sole proprietor and don’t have employees, it is still good practice to obtain an EIN. You may need it for some government forms, banks often require it for loans, and it can be used instead of your personal Social Security Number to protect against identity theft.
Apply for an Employer Identification Number (EIN) online
*Note: You must apply for an EIN during their hours of operation Monday-Friday 7 A.M.-10 P.M. Eastern Standard Time.
THE GENERAL
Process
1
Decide on your business structure and register your business name
Careful consideration must be given to the management, structural, and tax implications of your decision. While this resource is not a replacement for sound legal or tax advice, here is a general overview of the forms of business organization.
2
Get license requirements
If you are doing business in the state of Hawaiʻi, you’ll need to register for a General Excise Tax License (G.E.T).
The State may require additional license or business registration paperwork to be completed. Find some of the licensing requirements HERE.
3
Obtain the necessary tax information
Taxation for small businesses may be simple or complex, depending on the size and business structure. The tax liability for each business will be different and you should consult your attorney and accountant regarding comprehensive tax planning.
4
Learn about employer reporting requirements and responsibilities
As an employer, you will be responsible for additional employment insurance and worker’s compensation insurance. This includes applying for federal and state withholding numbers.
- For Federal Identification Numbers (EINs) contact the Internal Revenue Service or call (800) 829-4933.
- For State Sales Tax and State Withholding Tax contact the State Department of Taxation 808-587-4242
LEARN MORE ABOUT
Starting Your Business
