Honolulu Business License (Oahu): No General City License, $1,000 Short-Term Rental Registration, Home Occupation Rules and Liquor Fees

If you want to start a business in Honolulu, Hawaii, the first thing to know is that there is no general city business license to apply for. The City and County of Honolulu is the only government on Oahu, serving 988,703 people according to the 2025 Census estimate, and no city or town adds a separate business license on top of it. What you actually need depends on what you sell, where you operate, and whether you serve food, alcohol or overnight guests. This guide covers those steps in the order most owners handle them.

Disclaimer: This article is informational content, not legal or tax advice. Fees and rules change, so confirm every figure on the agency page before you file or pay. For a complex ownership structure, a liquor application, or a short-term rental, talk with a qualified attorney or CPA.

What You Need Before You Start

• A business name that includes Limited Liability Company, L.L.C., or LLC if you form an LLC. Check availability first in the free BREG business name search.
• A registered agent with a physical street address in Hawaii. An LLC cannot serve as its own registered agent.
• The Hawaii street address of your business and of your registered agent.
• A written description of what you will sell or do, and where you will do it: home, leased commercial space, or a rental unit.
• A signed lease or the property owner's written permission if you will operate from a space you do not own.
• A federal Employer Identification Number (EIN) from the IRS if you plan to hire staff or open a business bank account.
• A valid photo ID and a credit or debit card for state fees.

Step 1: Choose Your Legal Structure

Most small owners in Honolulu form either a Limited Liability Company or a corporation. The formation documents are the Articles of Organization for an LLC (Form LLC-1) and the Articles of Incorporation for a corporation (Form DC-1). Each carries a $50 filing fee plus a $1 State Archives fee. Hawaii has no franchise tax on LLCs, but the business is still subject to the General Excise Tax (GET), covered in Step 3.

Before you file, know that the Articles must list the registered agent's complete Hawaii street address. The Business Registration Division (BREG) also describes online filing through Hawaii Business Express as the most efficient method. Expedited review normally adds $25.00 per document, but BREG states that expedited processing is not available at this time following the July 6, 2026 move to its new registration system, so plan for routine processing.

If you need time to finish your paperwork, you can reserve a name for 120 days for a $10 fee.

Step 2: File Your Entity or Trade Name

File your LLC or corporation at Hawaii Business Express. Remember that this is a registration with the state, not a license. It creates your legal entity but does not authorize you to sell anything.

If you operate under a name other than your legal entity name, register a trade name (DBA) with BREG using Form T-1. The fee is $50.00 plus a $1.00 State Archives preservation fee. An optional $20.00 expedited fee is listed on the DBA schedule, but because BREG says expedited processing is not currently available, confirm before you pay it. A trade name registration is valid for five years, and the Department does not send renewal notices, so write the expiration date on your calendar. Hawaii has no county-level DBA filing, so the state registration is the only one.

You can find the trade name form and instructions at cca.hawaii.gov/breg/registration/trade/.

Step 3: Get Your General Excise Tax (GET) License

This is the one universal state registration. Every person doing business in Hawaii must obtain a GET license from the Department of Taxation. It is a one-time $20 fee, applied for on Form BB-1 or through Hawaii Tax Online, and it stays active until you close, surrender or lose it through revocation.

Processing time depends on the method. An in-person application is immediate, online through Hawaii Tax Online takes 5 to 7 business days, and mail takes 4 to 6 weeks. Apply before you make your first sale.

Hawaii has no sales tax. Instead, the GET is levied on the seller's gross income or receipts. The rate is 4.0% plus a 0.5% county surcharge, for a combined 4.5% on retail goods and services, rentals, construction contracting and commissions. Wholesaling and producing are taxed at 0.5%, and insurance commissions at 0.15%. If you visibly pass the tax on to customers, the maximum pass-on rate is 4.7120%. Every license holder must file returns, even in a period with no income. Confirm current filing frequency at tax.hawaii.gov/get/.

Step 4: Check for Trade, Professional and Industry Licenses

Because Honolulu has no general business license, your real licensing questions are about your trade. Hawaii licenses many occupations through the DCCA Professional and Vocational Licensing boards. Named trades are handled through the City's Customer Services, so call or visit before you assume your work is unregulated. Separate county permits and industry permits may also apply, so check with the Department of Planning and Permitting (DPP) for any work that involves building, signage or site changes.

Step 5: Follow Home Occupation Rules If You Work From Home

A home-based business is generally treated as an accessory use under Revised Ordinances of Honolulu (ROH) 21-5.50-3(b). Under those rules, your business must remain accessory to the home and cannot have on-site signage. You may have one outside employee at a time. Weddings and events are not permitted as a home occupation.

Before you buy inventory or advertise, confirm that your specific activity fits these limits with DPP. Customers visiting a home for pickups, appointments or deliveries should be reviewed in advance, because the rules focus on how the home is used.

Step 6: Register a Short-Term Rental (Under 30 Days)

Short-term rentals of fewer than 30 days are allowed only in resort zones and a few mapped areas. These include Waikiki mauka of Kuhio Avenue, Ko Olina, Turtle Bay and Hoakalei. If your property is outside these areas, do not list it.

DPP guides dated October 2026 list the registration as $1,000 for the initial filing and $500 for each renewal. You must also carry $1,000,000 in liability coverage and hold the GET license, a state transient accommodations tax (TAT) license and a city TAT license.

There is a conflict in the rules you need to resolve before you rely on either version. DPP says it enforces a 30-day minimum, but the ordinance text refers to 90 days. A federal court enjoined the 90-day change in 2022. Check with DPP in writing before you set your booking terms.

If your rental predates October 22, 1986, you may hold a nonconforming use certificate instead. These certificates renew each year between September 1 and October 15, so missing that window can cost you the status.

Step 7: Plan Your Liquor License Fees

If you serve alcohol, apply through the Honolulu Liquor Commission. A Class 2 restaurant general liquor license is listed at $1,800 a year on the Commission's fee sheet. That fee sheet was revised in 2021, so confirm the current amount with the Commission before you budget. To qualify as a Class 2 restaurant, at least 30% of gross revenue must come from food. Confirm with the Commission how it checks the food-sales share.

Step 8: Arrange Food Permits Through the State

Honolulu has no county health department. The state Department of Health issues food permits, so any food preparation or service should be reviewed with DOH directly before opening. Confirm the current permit requirements and fees with DOH, since the process depends on the type of food operation.

Step 9: Calendar Your Annual Reports

LLCs and corporations must file an annual report for $12.50 each year. It is due by the end of the calendar quarter that matches the quarter in which you registered. No report is required in the year you register.

Registered between	Annual report due
January 1 to March 31	March 31
April 1 to June 30	June 30
July 1 to September 30	September 30
October 1 to December 31	December 31

If you have employees, you must also follow the Prepaid Health Care Act. Confirm your obligations with the Department of Labor and Industrial Relations before your first payroll.

Expected Results

Completing these steps in order may give you a documented setup that banks, landlords and insurers often ask to see. It can also reduce the chance of a stop-work order, a denied renewal or a surprise tax bill. Results depend on your trade, location and how carefully you confirm the open items. No filing or checklist can guarantee approval.

Tips and Common Mistakes to Avoid

• Assuming a city business license exists. Ask DPP and Customer Services what applies to your trade instead of searching for a general license.
• Treating the entity filing as a license. An LLC or corporation registration does not replace the GET license.
• Selling before getting your GET license. Apply before your first sale, since the license is required for all persons doing business in Hawaii.
• Adding a separate sales tax line. Hawaii has no sales tax. Build the GET into your pricing and remember the 4.7120% pass-on ceiling.
• Naming an LLC as its own registered agent. Use an individual or an authorized entity with a Hawaii address.
• Listing a short-term rental outside a mapped area. Confirm your parcel with DPP before taking bookings.
• Relying on one version of the 30-day or 90-day rule. Get DPP's current position in writing.
• Missing the nonconforming use renewal window. Mark September 1 to October 15 on your calendar each year.
• Hosting events at a home business. Weddings and events fall outside the home occupation rules.
• Forgetting the annual report. Track the quarter in which you registered, and remember there is no report in your first year.

Where to Get Help

The Hawaii Small Business Development Center (Hawaii SBDC) offers free and low-cost advising, with its Honolulu office at 677 Ala Moana Blvd, Suite 612. For federal resources and the Hawaii district overview, see sba.gov/district/hawaii. Oahu has five enterprise zones. Confirm whether your address or business qualifies with the state before you assume any benefit.

For entity filings and business name searches, use the Business Registration Division and the BREG business search. For tax questions, see the Department of Taxation.

Disclaimer: This article is informational content, not legal or tax advice. Verify all fees, deadlines and zoning rules with the named agency before you act, and consult a qualified attorney or CPA for your situation.