Should a salesman who is an independent contractor obtain a general excise tax license?

A salesman who operates as an independent contractor is required to obtain a general excise tax license because they are conducting business and earning income in Hawaii. The general excise tax (GET) is a tax imposed on business activities and is applicable to anyone engaging in business within the state. This includes independent contractors, as they are considered self-employed and must comply with state tax regulations.

Having a general excise tax license allows the salesman to collect taxes on sales and remit them to the state, ensuring compliance with Hawaii tax law. It also legitimizes their business activities and provides a level of credibility when dealing with clients and other businesses.

In this context, while some may think that obtaining this license is optional, the law clearly stipulates that anyone engaging in business, including real estate sales, must have this license to operate legally and avoid potential penalties. Thus, obtaining a general excise tax license is mandatory for independent contractors in real estate in Hawaii.