How to Start a Car Dealership or Auto Repair Shop in Hawaii: Motor Vehicle Industry Licensing Board, County-Specific Dealer License and Licensed Mechanics

If you want to sell vehicles or fix them for the public in Hawaii, you will deal with two separate licensing tracks. Dealers apply to the Motor Vehicle Industry Licensing Board (MVILB) under Hawaii Revised Statutes (HRS) Chapter 437. Repair shops and mechanics apply to the Motor Vehicle Repair Industry Board under HRS Chapter 437B. Both boards sit within the Hawaii Department of Commerce and Consumer Affairs (DCCA). This guide walks through the order most new owners follow, from forming the business entity to getting a used car dealer license in Hawaii or a repair dealer license.

Disclaimer: This article is informational content, not legal or tax advice. Fees, deadlines and rules change, so confirm every figure with the agency named before you file or pay. For complex situations, such as multiple locations, partners, or financing arrangements, consult a qualified Hawaii attorney and a certified public accountant (CPA).

Materials and Information You Need Before You Start

• A business name that is available on the BREG business name search, which is free to use at https://hbe.dcca.hawaii.gov/search-and-buy
• Formation documents: Articles of Organization for a limited liability company (Form LLC-1) or Articles of Incorporation (Form DC-1), with the $50.00 filing fee plus a $1.00 State Archives fee
• A registered agent with a complete Hawaii street address, who must be physically present in the State
• A trade name registration (Form T-1) if you will operate under a name other than the one on your formation documents: $50.00 plus a $1.00 State Archives preservation fee
• A General Excise Tax (GET) license application (Form BB-1 or Hawaii Tax Online): $20.00, one time
• For dealers: a financial statement or financial review, as required by HRS 437-7, and proof of a permanent building that can display at least three vehicles, with suitable sanitation facilities
• For dealers and shops: a dealer bond or financial security. Confirm the required amount with the relevant board, because it is not listed in this guide
• For repair shops: certification records for every mechanic who will work on vehicles
• A written zoning confirmation from the county planning department for the address you plan to use

Step 1: Decide Whether You Need a Dealer License, a Repair License, or Both

Your first decision determines which board you deal with and how much paperwork you will carry. A dealer sells vehicles. A repair dealer, which is the shop itself, performs repairs. The MVILB dealer license and the Motor Vehicle Repair Industry Board license are separate. Hawaii also has no separate used-car class, so a dealer license covers used vehicle sales.

Keep two county rules in mind from the beginning. A dealer license authorizes business only in the county where it is issued, which means Honolulu, Hawaii, Maui or Kauai. Branches and commonly owned locations in the same county require board approval under HRS 437-2. If you plan to operate in more than one county, budget for a separate license in each one.

Step 2: Form Your Business Entity Through Hawaii Business Express

Most owners file their formation documents online through Hawaii Business Express at https://hbe.dcca.hawaii.gov/. The Business Registration Division (BREG) describes online filing as the most efficient method. BREG does not publish a standard turnaround time for routine filings.

For a limited liability company, the filing fee is $50.00 and the document is Form LLC-1. For a corporation, the filing fee is also $50.00 and the document is Form DC-1. The name must include the words Limited Liability Company, or the abbreviation L.L.C. or LLC. The name cannot be substantially identical to a name already registered, under Section 428-105, HRS and Section 16-36-15, Hawaii Administrative Rules.

Expedited review normally costs an extra $25.00 per document. However, BREG states that expedited processing is not available at this time because of the move to a new registration portal that went live July 6, 2026. Plan for routine processing and build that timeline into your lease and insurance dates. If you need to hold a name while you gather other documents, BREG offers a name reservation for 120 days at a fee of $10.00.

Step 3: Name a Hawaii Registered Agent

Every registered entity must name a registered agent for service of process. The agent must be an individual or an entity authorized to transact business in Hawaii, and must be physically present in the State. The Articles must state the complete Hawaii street address of the agent's place of business. See Sections 428-107 and 425R-4, HRS.

A limited liability company cannot be its own registered agent. Many owners use a commercial registered agent. Commercial agents file a listing statement with BREG for $100.00. Compare agents on price and on how they handle service of process notices, because a missed notice can create serious problems for your dealership.

Step 4: Register a Trade Name If You Will Use One

If your showroom or shop will use a name different from your legal entity name, such as a dealership brand name, file a Trade Name Registration (Form T-1) with BREG. The fee is $50.00 plus a $1.00 State Archives preservation fee, with an optional $20.00 expedited review fee, though expedited review is not available at this time. Registration is valid for five years. BREG does not send renewal notices, so calendar the expiration date. Hawaii has no county-level DBA filing, so you do not file a separate trade name with any county.

Step 5: Obtain Your General Excise Tax License

Hawaii has no general statewide business license and no county general business license. The one universal state registration is the General Excise Tax (GET) license from the Hawaii Department of Taxation (DOTAX). The license costs $20.00 one time, and you can apply on Form BB-1 or through Hawaii Tax Online at https://tax.hawaii.gov/get/. Processing is immediate in person, takes 5 to 7 business days through Hawaii Tax Online, and takes 4 to 6 weeks by mail. The license stays active until you close, surrender or lose it.

Hawaii has no sales tax. The GET is levied on the business's gross income or gross receipts, not on the customer. The state rate is 4.0 percent for retail and most activities, plus a 0.5 percent county surcharge, for a 4.5 percent total. Wholesaling carries 0.5 percent. Every license holder must file periodic and annual returns, even in a period with no income. Ask DOTAX how vehicle sales and repair labor are classified for your operation, because the rate that applies can depend on the activity. If you visibly pass the tax to customers, the maximum pass-on rate is 4.7120 percent.

Step 6: Apply for the Motor Vehicle Industry Licensing Board Dealer License

Dealers apply to the MVILB under HRS Chapter 437. The board's requirements focus on the site. Under HRS 437-11, the location must be used primarily for selling vehicles, must have a permanent building able to display at least three vehicles, and must have suitable sanitation facilities. A tent, a fenced lot without a building, or a space shared with an unrelated primary business will not meet this standard. Confirm the details with the board before you sign a lease.

Dealer applicants must also furnish a financial review or financial statement under HRS 437-7. Prepare current, accurate financial records before you apply. The board also requires a bond or other financial security. Check the amount with the board, since this guide does not state a figure.

Note that new broker licenses are no longer issued. If you want to act as a broker, you will need to confirm what options remain with the board. Other fees as of 2026 are as follows:

License or item	Fee (2026)
Salesperson	$174
Auction	$927
Branch location, Oahu	$538
Branch location, Neighbor Island	$344

Dealer licenses renew on June 30 of even-numbered years, so the next renewal is June 30, 2028. The board's page lists two dealer renewal figures, $538 and $344, without stating which one applies to your dealership. Confirm with the board before you budget for renewal. If you hire salespeople, each one needs a salesperson license.

Step 7: Apply for the Motor Vehicle Repair Industry Board License

Under HRS Chapter 437B, the Motor Vehicle Repair Industry Board licenses two things: the repair dealer, which is the shop, and each mechanic. Mechanics must be certified. A repair dealer must either be a mechanic itself or employ at least one, under HRS 437B-4 and 437B-7. If you are not a mechanic, you need to hire a certified mechanic before you can hold the repair dealer license.

Repair licenses renew on June 30 of odd-numbered years, so the next renewal is June 30, 2027. The board page lists a mechanic renewal of $190 and a repair dealer renewal of $288. Bond or financial security requirements for repair dealers should also be confirmed with the board.

Step 8: Confirm Zoning With Your County Planning Department

Hawaii has four counties and no incorporated cities. Zoning is set at the county level, so check the county planning department for the address you plan to use before you sign a lease or buy a building. Ask specifically whether the parcel permits vehicle sales, vehicle repair, or both, and whether any conditions apply. The site standards under HRS 437-11 are separate from zoning, so you must satisfy both. Get the zoning answer in writing.

Hawaii also has no county health department. If your shop will involve activities regulated by the State Department of Health, confirm those requirements with that agency directly.

Step 9: Plan for Employees and Payroll Obligations

If you hire staff, you must follow the Prepaid Health Care Act. Confirm your obligations with the Hawaii Department of Labor and Industrial Relations (DLIR) before your first hire. Corporations also file the corporate income tax on Form N-30 with DOTAX, using graduated rates that start at 4.4 percent. Net capital gains are taxed at an alternative 4 percent rate. Because payroll and tax treatment depend on your structure, ask a CPA to set up your books early.

Step 10: Calendar Your Annual Report

LLCs and corporations must file an annual report with BREG, with a fee of $12.50. The report is due by the end of the calendar quarter that matches the quarter in which you registered. No report is required in the calendar year you register. Hawaii has no franchise tax on LLCs.

Registration date	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

Common Mistakes to Avoid

• Signing a lease before the zoning and site check. A building that fails HRS 437-11 or the county zoning rules can leave you paying rent with no license.
• Assuming one license covers everything. Hawaii has no general statewide or county general business license. Your dealer or repair license is separate, and the GET license is the one universal registration.
• Confusing the GET with a sales tax. The GET is a tax on your business receipts. Customers do not see it as a separate line item unless you choose to pass it on.
• Naming an unqualified registered agent. An agent who is not physically present in Hawaii, or an LLC naming itself, will not satisfy the requirement.
• Missing the annual report deadline. The due date depends on your registration quarter, not on a single date for every entity.
• Opening a second location in another county without a new license. A dealer license covers only the county where it was issued.
• Running a repair shop without a certified mechanic. A repair dealer must be a mechanic or employ at least one.
• Missing renewal dates. Dealer licenses renew in even years and repair licenses in odd years, and the fees differ by license type.

Expected Results

Once you complete these steps, you may be positioned to open a licensed dealership or repair shop in the county you chose. A properly formed entity with a valid registered agent and a current annual report may help you stay in good standing with BREG. A GET license may allow you to invoice customers and file required returns. A dealer license may allow you to operate only at the site and in the county listed on it. Timelines are not guaranteed, because BREG does not publish a standard turnaround time and expedited review is not available at this time. Plan for a process that could take several weeks or longer, and confirm current status with each agency.

Where to Get Help

The DCCA Business Registration Division site at https://cca.hawaii.gov/breg/ covers entity filings and trade names. The Hawaii Department of Taxation at https://tax.hawaii.gov/ covers the GET. The Hawaii Small Business Development Center at https://hisbdc.org/ offers free advising, and the SBA's Hawaii district page at https://www.sba.gov/district/hawaii lists local resources. For the MVILB and the Motor Vehicle Repair Industry Board, use the DCCA website at cca.hawaii.gov to find each board's current forms, fees and bond requirements.

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