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How to File a Trade Name (DBA) in Hawaii

Business man sitting next to his computer with forms, Hawaii and state map and file DBA

A good business name is essential to growing your business. The right name should connect with customers, be memorable, and maybe explain what your business does. While your business might already have the perfect name, sometimes businesses want to operate using a name other than their official one.

If you want to use a different business name, thats what a DBA is for. Heres what doing business as actually is, and how to file for a DBA in Hawaii.

What is a DBA?

DBA stands for doing business as. It allows your business to use a name other than what was used when first registering the business. For example, a plumbing business with multiple locations might use DBAs Honolulu Plumbing, Hilo Plumbing and Pearl City Plumbing.

In Hawaii, DBAs are referred to as trade names. The two terms refer to the same thing — a name other than your businesss official one. Sometimes these are also called an assumed business name or a fictitious name. Trade name is the term used by the Hawaii Secretary of State, though.

There are several reasons why different businesses might want a trade name:

  • Sole Proprietor: A sole proprietor might use a trade name so they can operate under a name other than their personal one. For example, travel guide John Doe might use Honolulu Travel Tours rather than John Doe.
  • LLC/Corporation: An LLC, partnership or corporation might use a trade name so it can market without LLC, Inc. or a similar designator. An appropriate designator is generally required when registering a non-sole proprietor business.
  • Larger Business: A larger business with multiple locations might use a separate trade name for each of its locations, such as in the plumbing example above.

DBA Vs. Trade Name

DBA and trade name both refer to an alternative name that your business uses. DBA may be the more common term, but trade name is the one that Hawaii uses.

Benefits of a DBA

There are several benefits for a DBA, a couple of which are especially helpful to sole proprietors:

  • Any business structure: You can use a trade name regardless of your businesss stricture. Specifically, sole proprietors can use a trade name without filing as an LLC.
  • No EIN required: An employer identification number (EIN) can be obtained from the IRS, and functions like a business Social Security number for tax purposes. Sole proprietors arent required to have one, and can use a trade name without getting an EIN.
  • No designator requirement: Businesses structured as LLCs or corporations generally need to include a designator, such as LLC or Inc, in their official name. A trade name doesnt need any such designator, which often sounds more natural when marketing.

Disadvantages of a DBA

At the same time, a DBA isnt equal to establishing an LLC or corporation. Its important to understand the limits of a trade name:

  • No ownership: Filing a trade name in Hawaii doesnt actually guarantee your business exclusive use of the name. Instead, is determined by using the name openly and continuously in the marketplace. This is fairly unusual, and unique to Hawaii.
  • No liability protection: Since a trade name doesnt establish a new legal entity, it doesn’t offer the legal protection that an LLC or corporation does. Specifically, your personal assets may still be exposed to potential liability lawsuits if operating as a sole proprietor.
  • No tax benefits: A trade name also doesnt offer tax benefits, which an LLC and corporation structure each can.

Ownership of business names in Hawaii

Its worth underscoring that filing for a trade name in Hawaii doesnt guarantee your business ownership — or the right to use — the name. Theres also no requirement to file a trade name that your business uses.

If a dispute arise over the use of a business name, whichever business first used the name openly and continuously in the marketplace retains rights to it. You could file a trade name, only to learn that another business was already using it — and your business cant.

Consequences for operating with a DBA without registration in Hawaii

There are no legal consequences to using a DBA or trade name without registration in Hawaii. The state doesnt require trade names to be registered.

Registering a trade name could be helpful if another business begins using your businesss trade name. While having it registered as a trade name doesnt guarantee you rights to the name, registering might make it easier to argue your claim should there be a lawsuit.

Tax considerations

Registering a trade name has no impact on your state or federal taxes. This isnt a business structure thatd change your accounting or tax situation.

Filing for a DBA in Hawaii

Even though you arent required to register a DBA or trade name, doing so is a recommended best practice. It could help your case in court, and generally makes things a little easier. Registering is straightforward and inexpensive.

Hawaii's name requirements

Regardless of whether you register your Hawaii business trade name, any name that your business uses must meet the states naming requirements:

  • Available: Most importantly, the name must be available. No other business can be using it, or else your business wont have ownership of the name regardless of whether its registered. In other words, the name must be distinguishable from all other business names in use.
  • No designator: Your name doesnt need to include LLC, Inc or anything similar, even if you use one of these business structures. Such terms are required in official names, but not in trade names.
  • Prohibited words: Anything that implies a local, state or federal government affiliation is prohibited. For example, you cant use FBI, Treasury or anything similar.
  • Restricted words: You can only use certain words with state approval. These primarily apply to financial institutions; bank, savings and loan, and similar terms require approval. You also need approval for cooperative, CPA, and certain other words.
  • Required words: Your name must include insurance if operating within the insurance industry, and reciprocal insurers are required to use another term like reciprocal or underwriters.
  • Honest: No business name can intentionally mislead or confuse the public.

Hawaiis business name requirements are spelled out in the.

Begin with an Assumed Name search in Hawaii

Checking whether a business name is already in use requires searching both the Hawaii business registrations, and generally online via Google.

First, use the function on Hawaii Business Express. The best way is using contains, and putting your business name in quotes. Assume that any business registered as a trade name, entity, trade mark, service mark, or pending filing isnt available. Even if one of these is expired (fairly common with trade names), the name could still be in continuous use in the marketplace.

Both the official business search and the application clearly state: Registration of a trade name with the department does not grant you ownership of the trade name.

Second, use Google to do a thorough search for businesses with your desired name. Search using quotes and no location. Also search with quotes and Hawaii, and then the island and your locality. This should show whether a business name is currently being used.

Steps to register your trade name in Hawaii

Step 1: Complete a Trade Name application

Hawaii trade business names can be registered online or via mail.

To register a trade name online, use (account required). Select Start, which has register a new trade name or mark listed below it. Note, this is different from the search businesses, trade names & marks function. Log in, and youll see the option to register a trade name.

To register a trade name by mail, complete the Application for Registration of Trade Name (). The application requests fairly basic information, and is one page.

Step 2: Submit the application and pay the fee

Submit the application, which is the last step if filing online. The mail-in form should be sent to: State of Hawaii, Department of Consumer Affairs, Business Registration Division, P.O. Box 40, Honolulu, HI 96810.

The trade name registration fee will be due when you file. The fee is $50 regardless of how you file, and payable by check if you use the mail-in form.

Standard filings usually take 3-5 business days, while expedited ones are completed within 1 business day. Theres little reason to pay more for expedited filing, however, as you can start using the name today.

Step 3: Renew in 5 Years

Hawaii trade name registrations are good for 5 years, after which they should be renewed. Make a note somewhere so that you dont forget to renew.

At the same time, not renewing a trade name registration wont sacrifice your ownership of the name. Ownership of a business name is still determined by whether its continuously used, and not whether the registration is current.

If you ever need a certificate of a trade name, you can obtain it through.

Filing Online vs filing by mail

Filing online through is the quickest and easiest way to file. If youre using the mail-in form, send it to State of Hawaii, Department of Consumer Affairs, Business Registration Division, P.O. Box 40, Honolulu, HI 96810.

Note: The offices physical address is 335 Merchant Street, Suite 201, Honolulu, HI 96813, in case you want to drop off the physical form in person.

Conclusion

Registering a trade name in Hawaii isnt absolutely required, but is a good idea. Itll let others know that youre using the name — and can be almost any name so long as its currently not in use. Register and start using a trade name for your business today.

FAQs

No, registering a DBA in Hawaii is optional. Trade names can be used without registering them.

The filing fee for a trade name in Hawaii is $50.

Trade name registrations are good for 5 years, after which they should be renewed. Renewing isnt absolutely required, though.