Tax Preparer Permits & Licenses in Hilo, HI

Mandatory for all businesses operating in Honolulu; tax preparers classified under professional services

Required for all commercial activities; apply online or in-person

All businesses must obtain; tax preparer falls under general commercial

Required if tax prep business is home-based; restrictions on traffic, signage, employees. Check county zoning code (e.g., Honolulu Ch. 21 Zoning)

Must confirm property zoned for professional office use (e.g., BMX-3, B-1). Tax preparer typically allowed in business/professional zones

Required for wall, freestanding, or projecting signs; complies with county sign ordinance (e.g., Honolulu §23-1.3)

Office spaces >5,000 sq ft or with assembly areas require annual; basic offices often one-time

Required for monitored systems; annual renewal in some counties

Hawaii law (HRS § 388‑1) requires any employer with one or more employees to maintain workers’ comp. Coverage limits are $100,000 each for medical, disability, and death benefits.

State law does not mandate general liability for tax preparers, but it is strongly recommended to protect against third‑party bodily injury or property damage claims.

Requires filing Articles of Organization. Annual reports required separately (see below).

All LLCs must file annually regardless of activity level.

Required for ALL businesses selling goods or services in Hawaii. Tax preparers subject to 4% or 4.5% GET rate depending on location.

Renewal every 10 years for $25. Not required if using exact LLC legal name.

Required for ANY person preparing Hawaii tax returns for compensation. LLC itself does not register, but owners/employees who prepare returns must. No exam required. Renew annually by Dec 31.

All businesses in Hawaii, including LLCs providing tax preparation services, must register for General Excise Tax (GET). The standard GET rate is 4% for most counties; however, Honolulu County adds a 0.5% surcharge (total 4.5%). Tax preparers are not exempt. Filing is required even if no tax is due.

Required for all employers in Hawaii who pay wages to employees. This includes the business owner if they receive a salary from the LLC. Registration is done via Form GW-1 or online through Hawaii Tax Online.

Applies to employers with one or more employees. New employers pay a standard rate of 2.7% on the first $700 of each employee’s annual wages. Employers must file quarterly wage reports (Form UC-B1) and pay tax by the last day of the month following each quarter.

Hawaii does not impose a corporate income tax on C corporations only. However, LLCs are pass-through entities, so income flows to members who report it on personal returns. The LLC itself must file Form N-15 (Hawaii Partnership Return) annually if it has income sourced in Hawaii. This is an informational return and may be required even if no tax is due.

Hawaii does not have a traditional franchise tax. Instead, the General Excise Tax (GET) is imposed on gross income from business activities at a rate of 4% (or 4.5% in Honolulu). Tax preparers must file GET returns (Form G-45) monthly or quarterly depending on revenue. Businesses with average monthly GET liability under $1,000 may file quarterly; others must file monthly.

While not a legal requirement, many professional organizations (e.g., National Association of Tax Professionals) and client agreements require E&O coverage.

Hawaii law (HRS § 235‑1) requires all tax preparers to obtain a $5,000 surety bond as a condition of registration. The bond protects taxpayers against fraud or negligence.

Hawaii requires any vehicle used for business purposes to carry commercial auto liability insurance meeting the state’s minimum limits ($25,000 per person, $50,000 per accident, $25,000 property).

Required for LLCs that have employees, multiple members, or that file certain tax returns.

All individuals who prepare or assist in preparing U.S. federal tax returns for compensation must obtain a PTIN.

Registration includes passing a suitability test and signing a participation agreement.

Requires completion of 18 hours of continuing education, including 6 hours of federal tax law.

LLC members receive Schedule K‑1; corporation files Form 1120 and pays corporate tax.

Members of a partnership‑taxed LLC generally make estimated payments on their individual returns.

Deposits generally required semi‑weekly or monthly depending on tax liability.

Electronic filing is required if filing 250 or more forms.

Even office‑based tax preparers are covered under OSHA’s General Industry standards.

Tax preparer offices are considered places of public accommodation; websites must be accessible under Title III.

Tax preparers must avoid deceptive or misleading statements about fees, qualifications, or outcomes.

Employers must retain I‑9 forms for a specified period and make them available for inspection.

Applies to minimum wage, overtime, record‑keeping, and child labor provisions.

Most small tax‑preparer LLCs will not meet the employee threshold, but the requirement is noted for completeness.

Standard tax‑preparer offices generally have no EPA hazardous waste obligations.

Filing is done online via the Business Registration portal. The filing confirms the LLC’s continued existence.

All businesses conducting taxable activity in Hawaii must file GET returns. Registration (Form BB‑1) is a one‑time requirement.

LLC taxed as partnership files Form N‑15; single‑member LLC taxed as sole proprietor files Form N‑11.

All businesses operating in Honolulu County must obtain a County Business License and pay an annual privilege tax based on gross income. Tax preparation services fall under 'Professional Services'. Other counties in Hawaii (e.g., Maui, Kauai, Hawaii County) do not currently impose a separate local business privilege tax.

Hawaii does not currently require tax preparers to register separately with the Department of Taxation, post a bond, or pay a special excise tax beyond standard GET and income tax obligations. However, preparers must comply with IRS requirements (e.g., PTIN). This may change if new legislation is enacted, but no such law is active as of 2024.

Required in all Hawaii counties for any business activity including tax preparation. Specific application via county business licensing division (e.g., Honolulu Dept. of Customer Services)

Annual reconciliation due with the annual income‑tax return.

Employers must register for UI and report wages each quarter.

Proof of coverage must be kept on file at the principal place of business.

Renewal is completed online; the license must be displayed at the principal place of business.

Renewal requires completion of 30 continuing education (CE) hours per renewal period.

30 CE hours required per two‑year renewal period; at least 4 hours must be ethics.

Posters must be placed in a conspicuous location where all employees can read them.

Include invoices, receipts, bank statements, payroll records, and tax returns.

LLC taxed as partnership files Form 1065; single‑member LLC taxed as sole proprietor files Schedule C on Form 1040.

Payments are required for both income tax and self‑employment tax.

All dates are calendar‑year based; businesses operating on a fiscal year must adjust accordingly.

Filing is done online via the Business Registration portal. The filing confirms the LLC’s continued existence and must be accompanied by the annual report fee.

All partners must receive a Schedule K‑1 by the filing deadline.