Hawaii Business Compliance Checklist
Hawaii has some of the highest income and business tax rates in the U.S., along with the Prepaid Health Care Act — the country's first universal employer health insurance law. This page covers everything from filing fees to sales tax to hiring laws.
$50
$15
Every year
4%
state base rate
No
1. Entity Formation
| LLC filing fee (Articles of Organization) | $50 |
| Corp filing fee (Articles of Incorporation) | $50 |
| Registered agent required | Yes — must have a physical address in the state |
| Publication requirement | No |
| Processing time | ~7 business days (expedited available for extra fee) |
2. Annual Maintenance
| Annual/periodic report | Every year — fee $15 |
| Franchise tax | None |
3. Sales Tax
| State base rate | 4% |
| Combined rate range (with local) | 4% – 4.5% |
| Economic nexus (out-of-state seller) | $100,000 OR 200 transactions per year |
| Marketplace facilitator law | Yes — marketplaces (Amazon, Etsy) collect on your behalf. |
Need to check nexus across multiple states? Use our Sales Tax Nexus Checker.
4. Employer Requirements
| Minimum wage | $14.00/hr (2025) |
| Paid sick leave law | Statewide mandate |
| Non-compete enforceability | Enforceable — reasonable scope and duration required |
| Contractor classification test | Common-law (IRS) test |
Full employment law breakdown: Hawaii Hiring Laws.
5. Workers' Compensation
Hawaii allows private-market workers' comp insurance (competitive market). Coverage is required starting with your first employee.
Estimate your premium with our Workers' Comp Calculator.
6. State Income Tax
Progressive brackets — top marginal rate is 11%.
Compliance by Business Structure
Pick your structure to see structure-specific compliance items.
What Makes Hawaii Distinctive
Compliance quirks and rules that separate Hawaii from other states — worth understanding before you file.
- Hawaii's LLC filing fee is only $50, but the state has significant industry-specific licensing requirements (real estate, contracting, food service).
- Hawaii's General Excise Tax (GET) applies to nearly all business activity, not just retail — including B2B services (see sales tax section).
- Hawaii's Department of Commerce and Consumer Affairs handles both entity registration and professional licensing.
This is a reference, not legal advice.
State fees and rules change. Verify current values with the Hawaii Secretary of State, Department of Revenue, and Department of Labor before filing. For complex situations, consult a licensed CPA or attorney.