Register DBA with State of Hawaii

[Former_Member]

Has anyone done this? What's the process and how important is it that I do this?

I don't consider myself a business but I'm thinking if I want to do more I should probably register.

Thanks!

[alohaletterpress]

Yes. You should register. You need it for taxes, if you open a business bank account and it also recognizes your shop as a business. Why don't you consider your shop a business? If you are selling any kind of merchandise and earning income, you are a business.

[alohaletterpress]

See--
https://hbe.ehawaii.gov/BizEx/home.eb;jsessionid=91C44E684099CB4A8378E00BD6E6377C.luka

[Former_Member]

If you're selling you should, even if it's a hobby. Plus you wouldn't be able to get in many craft shows without your GE license.

[BitOfSugar]

Hi Helen,

I agree with the others, you should definitely get a ge tax license if you don't already have one. If you were to ever get caught selling, the tax department could fine you $2,000. Because you do have your items available online, the state would consider you a business. The odds of them ever catching and fining you are probably very slim, but better to spend $20 for a GE license that is good for the rest of your life than to be slapped with a huge fine.

Now, if you're talking about simply adding a DBA to your GE tax license, that is totally up to you. I would do it so that no one could use your name. If you want to go one step further to protect your business name, you can also register it with the state.

Whether you need to get a GE or want to add a DBA to an existing GE license, you can go to the SBA. As of a couple years ago, they were located on Nimitz Highway above New Eagle Cafe and Sensually Yours. The girls there are very knowledgeable. They will walk you through the entire process and answer some of the very confusing questions on the application. Just be prepared to explain to them that you sell online and let them know whether or not you would like to sell at craft fairs, retail stores, etc. The whole process shouldn't take more than 20-30 minutes unless there is a long line.

The best part of getting your GE is that you can sometimes qualify for discounts! Joann has a 10% off program for business owners and Floradec may allow you to sign up for a wholesale account.

Hope that helps :)

[Former_Member]

Thanks for your responses.

I do have a GET license already for other stuff. I'm thinking it would be easier to just have one and file everything on it . . .

I will look into registering my business name with the state.

[BitOfSugar]

Hi Helen - Since you already have a GE, the process to add a dba is very easily. You just fill out a form to add the dba and there is no cost. When I changed my dba, I was in and out in literally two minutes. You might just want to search the database here:https://dotax.ehawaii.gov/tls/app to make sure your name isn't already taken.

[Former_Member]

Hmmm. I might not want to add a dba to my GE since I also use it for other stuff, although, then it would have my name for the other stuff and my dba for my craft stuff . . .

Thanks for the database link!

[StudioKWN]

Thanks for all the great info. I still need to get my GE license here in Hawaii.I used to have a DBA when I lived in NY but don't know if it's necessary to file for a new one in HI if I get the GE.
I'm a bit confused about how the sales tax thing works here. Can someone tell me if I need to charge sales tax for all out of state sales or just for sales made within the state of Hawaii?

[BitOfSugar]

Hi Kim - The excise tax is for transactions occurring in Hawaii, so no, you don't charge tax on out of state transactions. However, we are still required to report out of state income on our GET filings. Oahu has a slightly higher GE than the outer islands, and I'm not sure how it works if someone on Maui purchases an item from you.

The GE license application form has a field for adding your dba. Even though you have a dba in NY, you should still add it to your GE license so that nobody within Hawaii can use your dba. There is no charge for this and it gives you some degree of protection. (Technically, another business could steal your name even if you declare it on your GE but that's a whole 'nother legal issue!)

I noticed that you said "if I get the GE". There is no grey area here - you have to have a GE license.

The state has cracked down on businesses operating without a GE license during the past couple of years. There have been stings/raids on farmers markets and craft fairs. I have been questioned by the tax department and have been required to show them a copy of my GE license.

I checked out your store and saw you had multiple sales so you would definitely not qualify for the exemption allowing people to conduct infrequent sales (such as a garage sale) without a GE. It's only $20 per license and they never expire or need to be renewed. It's not worth risking the $2,000 fine for doing business without a license. Also, both Etsy and Paypal will generate 1099 forms if you have more than 200 sales a year. You are doing well for a store that has been opened only a couple of months and you may very well find yourself with 200+ sales by the end of the 2013 holiday season. If Etsy generates a 1099, the state tax office will be wondering why a 1099 was generated for a business that does not exist on paper.

I don't mean to scare you, but the state does take the matter very seriously. Better to prevent all the headaches of not having a GE. Then you can craft with peace of mind :)

[StudioKWN]

Thanks Bit of Sugar. This has been a really informative and very helpful thread! That's good to know about the craft fairs because I just started selling at art shows a few months ago and didn't know about the raids. I do always report the income on my taxes but better to be legit and not have to worry. I will get the license today!!

[PetrinaBlakely]

Hi from Kaua'i - I have a GE license but have different concerns when it comes to this because I live on Ag Land and the county has been watching to make sure that non ag businesses are not operating on ag lands. I have not yet figured out how to best approach this, it is a conundrum to me.