Business Entities
What is a sole proprietorship?
a. A business owned by two or more individuals
b. An unincorporated business owned by one individual
c. A type of corporation
d. An LLC with multiple members
All business must register to do business in Hawaii (DCCA) except which business entity?
Sole Proprietorship
Do businesses have to register with DOTAX?
Hawaii Tax ID & State Tax Licenses
Yes
What does UI stand for?
Unemployment Insurance
What is a partnership?
a. A business owned by one individual
b. A business that is a pass-through entity for income tax
c. A legal entity created under state law
d. A business not required to pay income tax
What does EIN stand for?
Employer Identification Number
What specific information that we just learned about would you need to open a business account? You would need to list at least two to receive the points.
Hawaii Tax ID,
social security number
EIN, and
your organizing document.
Does all employers have to pay unemployment insurance taxes?
Yes
What is a corporation?
a. A business owned by one or more shareholders
b. A business that does not pay income tax
c. A business that is not a legal entity
d. A business that does not have shareholders
Fill in the blank
An EIN ________ your business and is used to file your tax returns.
Identifies
Explain General Excise Tax license also known as GET?
GET is a tax on your gross business income
The amount you pay for unemployment insurance taxes is based on what?
Employee wages.
What is an S corporation?
a. A corporation that pays taxes at the corporate level
b. A corporation that passes through its profit or loss to its shareholders
c. A corporation that does not need a GET license
d. A corporation that does not file tax returns
Give an example of a business that would need additional licenses along with registering with DCCA to operate in the state of Hawaii.
Real Estate Agents
Construction Contractors
Travel agents
Explain Employer's Withholding Tax licenses?
- If you have employees, you must withhold Hawaii income taxes from your employees’ wages.
What is a limited liability company (LLC)?
a. A business owned by two or more persons
b. An unincorporated business owned by one individual
c. A legal entity created under state law
d. A business form with limited liability
Fill in the Blank: You must obtain an Employer Identification Number if any of the following applies to you:
You have ___________; or
You are a corporation, S corporation, or _____________.
Partnership
Depending on the nature of your business, you may be subject to the following federal business taxes; name one out of the four.
Income tax, self-employment tax, employer tax and excise taxes.
Final Jeopardy
Name two out of the four responsibilities an employer must comply to;
Withhold federal, state, and payroll taxes from your employees’ wages; Obtain a federal EIN, Hawaii Tax ID, and an employer account identification number(also known asthe Department of Labor (DOL) number);Obtain unemployment insurance coverage for youremployees; and Comply with Hawaii labor laws for worker’s compensation,temporary disability insurance, prepaid health care, andwage and hour programs.