Business
Starting a Business in Hawaii? Here’s What the State Doesn’t Tell You About Taxes
Starting a business in Hawaii is exciting — but if you’re like most new business owners, the moment you register your LLC or get your GE license, you’re hit with a wave of confusion about taxes.
The state gives you forms and deadlines, but very little context.
Here’s what they don’t tell you — and what you need to know.
GET Is Not Sales Tax — It’s a Tax on You
Hawaii’s General Excise Tax (GET) is one of the biggest surprises for new business owners. Unlike sales tax in other states, GET is a tax on your gross revenue — not on your customer.
Even if your customer pays you $100, you owe 4.5% on that amount, whether or not you made a profit.
You Have to File GET — Even If You Made No Money
Another shocker: you’re still required to file GET returns even if you didn’t earn anything that quarter. Miss a filing? You could get penalized — even for a $0 return.
You Might Owe Estimated Taxes — And No One Tells You
Federal and state taxes aren’t just due in April. Most business owners need to make estimated tax payments throughout the year — and the state won’t remind you.
Miss those, and you could get hit with surprise tax bills and penalties.
Your CPA Can’t File for You if Your Books Are a Mess
Even if you find a CPA, they can’t help much if your financial records are incomplete or disorganized. Clean books aren’t just helpful — they’re required for accurate filings and smart tax planning.
We Built WDS to Fix This Problem
At WDS, we’re based in Hawaii, and we’ve helped dozens of local businesses navigate the stuff no one explains. We specialize in business tax filing — and we also offer bookkeeping services so you don’t fall behind or get penalized.
If you’re just starting out (or still figuring it out), we’ll help you set things up the right way — and avoid expensive surprises later.