General Contractor Permits & Licenses in Kailua, HI

Required for all LLCs formed in Hawaii. Annual reports required separately (see below).

All registered businesses must file annually to maintain good standing.

Required for all general contracting work. Class A (unlimited), B (up to $50M), C (up to $500K). Prerequisites: 4+ years journey-level experience or equivalent, exam passage (business/law + trade), financial responsibility ($25K+ net worth/bond), E&O insurance ($100K+). Exam details at https://cca.hawaii.gov/pvl/boards/contractor/license-exam/

Applies to ALL businesses in Hawaii. Tax rate 4-4.712% depending on location (e.g., Oahu 4.712%). Renews annually via tax return.

Required if using a trade name/DBA. Renews every 10 years or upon LLC annual report.

General contractors may need specialty licenses for subspecialties. Prerequisites: experience, exam.

Coverage must include all job classifications performed on site. Subcontractor coverage must be verified.

Required for all employers in Hawaii. General contractors with employees must register for withholding tax and remit payroll taxes on wages paid. Registration is completed through the same BB-1 form as GET registration. Employers must file Form WH-3 (quarterly) and Form WH-1 (annual reconciliation).

All employers in Hawaii must register with the DLIR Division of Employment and Training for unemployment insurance (UI) tax. Employers pay UI tax on the first $47,700 of each employee's annual wages (as of 2023). Rates range from 1.5% to 6.7% depending on experience rating. Registration is done via Form HW-1.

Hawaii does not impose a separate corporate income tax on LLCs. Instead, income passes through to members who report it on their individual Hawaii income tax returns. However, the LLC must still obtain a Hawaii Tax ID (GET number) and may be required to file Form N-35 (Partnership Return) or N-37 (S Corporation Return) if applicable. Sole proprietorship LLCs file individual returns. No separate state-level entity income tax exists for LLCs.

While not a general business privilege tax, general contractors involved in real estate development or property transfers may be responsible for ensuring conveyance tax is paid. In Honolulu, this tax applies to transfers of real property. Contractors acting as developers or investors must pay this tax. Other counties (e.g., Maui, Kauai, Hawaii County) have similar conveyance taxes. This does not apply to standard contracting work unless the business itself is transferring title.

General contractors must pay use tax on materials, tools, and equipment purchased out-of-state and used in Hawaii, even if no sales tax was collected at purchase. This is typically reported on the same GET return (Form G-45) as gross income tax. Applies to all businesses using taxable goods in Hawaii.

All registered businesses must file Form G-45 quarterly unless granted monthly filing status. General contractors must report all gross receipts from construction services. The tax rate is 4% in Honolulu (Oahu), 4.5% in Maui, Kauai, and Hawaii counties. Contractors may also be subject to the 0.5% interisland surcharge on certain interisland projects.

Hawaii law requires all motor vehicles registered in the state to carry minimum liability coverage: $20,000 for bodily injury per person, $40,000 per accident, and $10,000 for property damage (20/40/10). Applies to any vehicle used for business purposes. Coverage must be maintained continuously.

Employers must file Form WH-1 annually to reconcile quarterly withholding (Form WH-3). This summarizes total wages and taxes withheld and is due by January 31. Also used to issue Form W-2 to employees.

An additional 0.5% interisland surcharge applies to contractors providing services across islands (e.g., from Oahu to Maui). This is not a separate registration but must be reported on the GET return. Applies only to interisland transactions.

Hawaii does not impose a traditional franchise tax on LLCs. Instead, the General Excise Tax (GET) acts as a gross receipts tax on all business activities. LLCs pay GET on total gross income from contracting services. There is no annual franchise fee like in Delaware or California. The GET is the primary business-level tax.

Required in all Hawaii counties (Honolulu, Hawaii, Maui, Kauai). Acts as primary county business license.

REQUIRED for all general contractors performing work over $1,500/job or $25,000/contract. State C-5 license prerequisite.

Confirms property zoning allows contractor office/yard use. Home-based may need separate permit.

Limited to low-impact uses; no heavy equipment storage allowed for contractors.

Required for any structural changes, electrical, plumbing.

Freestanding signs over 32 sq ft require design review.

Required for contractor storage of flammables/paint/solvents.

Final approval after passed building/fire inspections.

Annual monitoring contract also required.

In addition to state license; required for work on Maui/Lanai/Molokai.

Big Island requirement beyond state licensing.

Required for all construction work on Kauai.

Required for all employers with one or more employees, including part-time and family members over 18. Sole proprietors without employees are exempt but may elect coverage. Administered by the Disability Compensation Division (DCD) under Hawaii Revised Statutes Chapter 386.

Not directly mandated by statute, but proof of general liability insurance is required to secure the Contractor’s Bond (see below), which is mandatory for licensing. Thus, it is effectively required for all licensed general contractors.

A $10,000 surety bond is required for all general contractors applying for a license under Hawaii Administrative Rules Title 16, Chapter 801. The bond protects clients against fraud, misrepresentation, or failure to comply with contract terms. Bond must be issued by a surety company licensed in Hawaii.

Registration must be completed before the first payroll. Employers must retain payroll records for at least four years.

Requires an Erosion and Sediment Control Plan (ESCP) and Best Management Practices (BMPs). The permit is administered by the Department of Health’s Environmental Management Branch.

All Hawaii LLCs must file an annual report by the last day of the month in which the LLC was formed. Example: If formed in March, due March 31 annually. Must include business address, registered agent, and management structure. Failure to file may result in administrative dissolution.

Not mandated by Hawaii law or the Contractors License Board for general contractors. However, may be required by clients or project contracts. Strongly recommended for risk management.

Not required by Hawaii state law for general contractors unless they fabricate or sell products (e.g., pre-fabricated structures). General contractors who only provide labor and materials under contract are not subject to product liability mandates. However, civil liability exposure exists without coverage.

Only applicable if the business hosts events or operates venues where alcohol is served. Not relevant to general contractors unless engaged in event-based or hospitality construction with alcohol service. No state mandate for general contractors.

Single-member LLCs with no employees may use the owner's SSN, but obtaining an EIN is recommended for banking and contractor purposes. General Contractors often need an EIN to open business bank accounts and bid on projects.

LLCs are pass-through entities unless electing corporate taxation. Multi-member LLCs file Form 1065; single-member LLCs report on Schedule C (Form 1040). General Contractors must track project income and expenses for accurate reporting.

General Contractors must comply with OSHA standards including fall protection (29 CFR 1926.501), hazard communication (29 CFR 1910.1200), scaffolding (29 CFR 1926.451), and head/eye protection (29 CFR 1926.100, .102). OSHA covers construction-specific hazards.

General Contractors must ensure job sites open to the public (e.g., retail builds) comply with ADA standards. Also applies to business offices open to clients. ADA does not require retrofitting existing facilities unless undergoing alterations.

General Contractors disturbing more than 6 square feet of painted surface indoors or 20 square feet outdoors must be EPA-certified. Requires certified renovator on staff and adherence to lead-safe work practices. Hawaii does not have an authorized state program; EPA enforces directly.

General Contractors must avoid false or misleading claims in advertising (e.g., 'lowest price guaranteed', fake testimonials). Applies to websites, bids, and promotional materials. Must disclose material connections and not make unsubstantiated performance claims.

General Contractors must verify identity and work authorization for every employee using Form I-9. Employers must retain forms for 3 years after hire or 1 year after employment ends, whichever is later. Applies even if only one employee is hired.

Most General Contractors meet the commerce requirement due to use of materials from out of state. Must maintain accurate time and payroll records. Applies to both salaried and hourly workers. Independent contractor misclassification is a common risk area.

General Contractors with fewer than 50 employees are exempt. If threshold is met, must provide up to 12 weeks of unpaid, job-protected leave for qualifying medical or family reasons. Notice and recordkeeping required.

As of 2024, General Contractors bidding on federal projects must comply with CMMC standards to protect Controlled Unclassified Information (CUI). CMMC 1 applies to basic safeguarding; CMMC 3 for advanced. Not yet universally enforced but being phased in.

There is no federal licensing requirement for General Contractors. Licensing is handled at the state level. In Hawaii, the Department of Commerce and Consumer Affairs (DCCA) requires a contractor license. This is a federal-level exclusion.

Contractor licenses are issued per individual (owner or qualifier) and must be renewed every two years. The business must maintain at least one active qualifying individual. Renewal requires proof of current Oahu District Court Bond (or equivalent) and up-to-date continuing education. Fee varies by number of classifications held.

Contractors must complete 14 hours of board-approved continuing education every two years, including 7 hours of business and law topics and 7 hours of trade-specific content. Courses must be from DCCA-approved providers. Records must be kept for at least 4 years.

General contractors in Hawaii are subject to General Excise Tax (GET), not sales tax. Contractors on Oahu pay 4%. Filing frequency (monthly or quarterly) is determined by the Department of Taxation based on volume. Form G-45 must be filed even if no tax is due (zero return).

All GET taxpayers must file Form G-49 annually to reconcile quarterly or monthly returns. This is required even if the business is inactive.

Employers must register for Hawaii withholding tax and unemployment insurance tax. Withholding tax returns (Form WH-1) and payments are due quarterly. Employers must also file Form HW-1 annually by January 31. Unemployment tax (HI SUTA) is filed via Form C-8 quarterly.

Employers must display current posters on minimum wage, workers’ compensation, OSHA rights, and anti-discrimination laws. Posters available from DLIR website. Required in a conspicuous location accessible to employees.

A current, legible copy of the contractor’s license must be displayed at the principal place of business. If operating from a home office, it must be displayed in a public-facing area or provided upon request.

All employers in Hawaii must provide workers’ compensation coverage through a licensed insurer or self-insurance program. Proof of coverage (Form WC1) must be posted at the worksite. Contractors with no employees may file an exemption (Form WC-EX).

Covered employers must complete and post a summary of work-related injuries and illnesses (Form 300A) from February 1 to April 30. Electronic submission may be required based on size and industry. General contractors in construction are generally required to report.

Businesses must retain all records related to General Excise Tax, including invoices, receipts, and tax returns, for at least 5 years from the due date of the return. This includes records for contractors and subcontractors. Federal IRS rules also require 3–7 years for tax-related records.

All businesses in Honolulu must obtain a General Excise Tax License (Business License) and renew annually. Fee includes $62.50 base and $25 per employee. Other counties (e.g., Maui, Hawaii County) have similar requirements—verify locally. License must be displayed at place of business.

Commercial buildings used by contractors for offices or storage may be subject to annual fire inspections under the Hawaii Fire Code. Requirements vary by county. Contractors with vehicles or equipment storing flammable materials may also be subject to inspection.

The C‑36 license covers general building construction. Applicants must provide proof of experience, pass a competency exam, and maintain workers’ compensation and general liability insurance.

All businesses operating in Hawaii must register for a GET license within 30 days of beginning operations. Monthly/quarterly prepayments are required based on estimated tax.

LLC income is passed through to members; each member reports share on personal return. Estimated tax payments may be required quarterly.

General Contractors must submit plans, obtain permits, and schedule inspections. Compliance with the 2022 Hawaii State Building Code (based on IBC/IRC) is mandatory.

Employers must file Form C-8 quarterly and pay Hawaii Unemployment Insurance (UI) tax. New employers are assigned a standard rate until experience rating is established. Required for all employees, including part-time and temporary workers.