Share Legal Hawaii Startup For Sole Proprietorship Forms For Free

Even a sole proprietor is required to obtain a General Excise Tax License in Hawaii. Any business engaged in commercial activities must get one.

Sole proprietors are in complete control, and within the parameters of the law, may make decisions as they see fit. Sole proprietors receive all income generated by the business to keep or reinvest. Profits from the business flow-through directly to the owner's personal tax return.

The legal status of a sole proprietorship can be defined as follows: It is not a separate legal entity from the business owner. The business owner has unlimited liability (i.e. the business owner is personally liable for all the debts and losses of the sole proprietorship) It can sue or be sued in the owner's name.

With minimal legal costs and no ongoing state requirements, you can simply run your business. This is the case even if you're using a fictitious name, also called a DBA (doing business as). Control: The sole proprietor has complete control and decision-making power over the business.

Hawaii's Department of Taxation (DOT) requires people planning to start a business in Hawaii to obtain a general excise tax (GET) license. You can register your sole proprietorship and obtain a GET license online. You can also download and complete a Form BB-1, Basic Business Application and mail it in to the DOT.

You don't need to take any legal steps to form this type of business. If you are the only owner and begin conducting business, you automatically become a sole proprietorship. There is no need to formally file paperwork or submit anything at the federal, state, or local level to be recognized as such.