Incorporating in Hawaii is the first step in the long and arduous startup process of building a business.
Incorporation alone can take so much of your time, not to mention it’s also costly, effort exhausting and complicated. You may have realized all these by now, but as they say, everything worth having is worth fighting for, just like starting a business in Hawaii.
Learning how to incorporate in Hawaii was difficult enough, but now is not the time to stop because there are still a lot of things that you need to get done. After incorporating your Hawaii startup, you need to complete other supplementary requirements needed in the state.
There’s no need to get worried because these additional requirements are much easier to obtain compared to when you were incorporating your business.
Other than writing a fantastic business plan, here are 5 important requirements that you need to obtain to fully start your business in the state of Hawaii.
An Employer Identification Number is similar to a Social Security Number; it is a requirement in the state of Hawaii under the Internal Revenue Service. Your EIN is highly essential because it is the IRS’ way of monitoring your business activities and especially your state taxes.
Apart from this, an EIN is generally useful when doing business. You’ll be able to open a business bank account without any problems, hire employees whenever necessary and file for income tax returns during tax period. The EIN can be obtained for free at the IRS’s website.
Before you can fully start your business in the state of Hawaii, your local county will require you to obtain permits and licenses specific to your business type. You may also be required to produce one or more professional and occupational licenses.
Although business permits and licenses vary depending on the jurisdiction, some of the most common ones required in Hawaii include tax permits which can be obtained from the city of county clerk office, building permits available at your local county building and planning department, health permits which you can get at your health department; signage permits, alarm permits, zoning permits and many others.
If you want to start your Hawaii small business on the right foot, make sure to get all the permits and licenses that you need. You can inquire further, just go to your city or county clerk’s office and ask for assistance – they’ll be more than willing to help you out.
One of the most important responsibilities that you have as a Hawaii startup owner is understanding Hawaii tax regulations and your accompanying responsibilities, this is why you need to consult the assistance of a tax professional. Consulting with one is not a mandatory requirement, however, it’s essential if you want to be well-informed of your business taxes.
A tax adviser will explain every bit of information that you need to know about tax laws. They will also teach you how to comply with federal and state tax legislation. Your tax agent provides you with tax options that will enable you to take advantage of tax benefits and deductions, lower your tax liability and compute your taxes appropriately based on your investments.
Tax period is one of the most difficult times of the year for many entrepreneurs and if you want some guidance at this time, most tax professionals also offer tax assistance and preparation services – they can even manage your Hawaii business’s taxes for you.
There are basically three important reasons why you need to open a business bank account for your Hawaii small business: to be able to officially receive checks, payments and other business income using your business name, separate your personal and business expenses and continue establishing your Hawaii small business as a separate and independent entity.
Having said all these, it’s a must to open a business bank account for you and your business’s own good. Opening one will also help you build your financial history and credit line. While you’re applying for a business bank account, you can also open a credit card for your business; this is actually a more efficient way to keep track of your startup’s finances.
When you incorporate your business within Hawaii, your business name is automatically protected in the state, however, the trademark protection doesn’t cover other states.
This simply means that anyone can use it in Arkansas, California, Maine or in any other state other than Hawaii. If you want to protect your business in all 50 states, you can file a trademark giving you exclusive rights to your chosen business name.
All these requirements are mandatory and should be complied with accordingly. If you want to operate your Hawaii small business smoothly, the first step is to obtain all necessary requirements and complete all legal processes so you don’t have to worry about anything.
At the end of the day, these requirements are intended for the good of your business, it’s not for the state government, it’s all for your Hawaii startup.