My family and I are spending a few months in Kailua as we consider a permanent move here. We have been running a SAAS company for several years which we would run from here.
I've seen a couple of threads on this discussion board about the General Excise Tax for businesses like mine and would like to discuss it further with an accountant. Does anyone have a recommendation for an accountant that they could share? If you also run a SAAS business (most of our revenue comes from a yearly fee that we charge to our subscribers) I would be especially appreciative of your recommendation.
p.s. I am excited to attend the Tech conference this weekend and hope to meet lots of great people!
Look for me at TechHui. There are a few Windward developers and we should get together. And while I'm not doing SAAS, we did end up reincorporating in WA State for tax purposes.
Hi Stephen - Fellow TechHuian Doug Levin is a tech savvy CPA. He can speak knowledgeably about GE tax nexus.
The simple answer, which would need further information and a little tax research to confirm for sure is that your company would have to pay GE tax on its sales to Hawaii residents, and would not have to pay on services for customers with no ties to Hawaii. Your agreement with your out of state customers should probably include certain language which would qualify for as an exported services agreement with those customers, but it's only a few sentances.
So if you move here be prepared to be able to provide reports of Hawaii sales vs. sales everywhere for a given period, like a month.
Let me know if you need any further assistance.
With warmest aloha,
Doug Levin, CPA