State guide · Hawaii
Starting a Medical Practice in Hawaii
What physicians need to know about Hawaii's regulatory environment, entity requirements, and practice-specific rules.
Entity required
Professional Corporation or LLC
LLC permitted
Yes
CPOM enforcement
Moderate
Top income tax
11%
Min. franchise tax
None (General Excise Tax applies on gross receipts)
Med board registration
Not required
The information on this page is provided for general reference only and may not reflect recent regulatory or legislative changes. Entity formation requirements, tax rates, and CPOM rules vary by state and change frequently. Always verify requirements with your state's official agencies, a qualified healthcare attorney, or a CPA with medical practice experience before making business formation decisions. Nothing on this page constitutes legal or financial advice.
Entity Requirements
Hawaii physicians may form a Professional Corporation under HRS Chapter 415A or an LLC under Chapter 428. All owners practicing medicine must be licensed Hawaii physicians.
Filing is with the Hawaii Department of Commerce and Consumer Affairs (DCCA), Business Registration Division.
- •Form a Professional Corporation or LLC
- •All owners practicing medicine must be licensed Hawaii physicians
- •File Articles of Incorporation or Articles of Organization with DCCA
- •File Annual Report with DCCA
- •Obtain General Excise Tax (GET) license from the Department of Taxation
Corporate Practice of Medicine
Hawaii recognizes a moderate Corporate Practice of Medicine doctrine. Lay ownership of physician practices is restricted. Fee-splitting is prohibited.
Tax Considerations
Hawaii has the highest top personal income tax bracket in the country at 11%. There is no franchise tax, but the General Excise Tax (GET) applies to most business gross receipts at 4% (4.5% in Honolulu).
- •Top personal income tax: 11%
- •General Excise Tax (GET): 4% statewide, 4.5% in Honolulu — applies to gross receipts
- •Hawaii Prepaid Health Care Act requires employer-provided health insurance
- •No franchise tax
Worth knowing
Hawaii's Prepaid Health Care Act is unique — employers must provide health insurance to employees working 20+ hours/week. Plan accordingly when hiring.
Hawaii Medical Board
Hawaii does not require entity registration with the Medical Board for general practices. Individual physicians are licensed.
- •No general entity registration required
- •All practicing physicians must hold an active HI medical license
Employment Law Considerations
Hawaii is employee-protective. The Prepaid Health Care Act mandates employer health insurance for employees working 20+ hours/week. Hawaii Family Leave Law applies. Non-compete agreements are enforceable if reasonable.
- •Prepaid Health Care Act: mandatory employer-provided health insurance for 20+ hour/week employees
- •Hawaii Family Leave Law (4 weeks unpaid leave)
- •Hawaii minimum wage adjusts (currently $14, rising to $18 by 2028)
- •Non-compete agreements enforceable if reasonable
Official resources
Bookmark these official agency portals for Hawaii entity formation, tax registration, and medical board information.
Looking for Hawaii licensing and credentialing information?
State medical license requirements, controlled-substance registration, and Medicaid enrollment specifics for Hawaii.
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