Selling through a broker in Hawaii: at a glance
Hawaii rules that affect a business sale
| Topic | What the rule says | Source |
|---|---|---|
| Who may broker the sale | Hawaii is not on the commonly cited lists of states that require a license to broker a business sale, and we found no business-broker licensing statute. Anyone brokering real estate or a lease interest included in the deal still needs a Hawaii real estate license, and broker quality is unregulated - so vetting matters more. | |
| State income tax on the gain | Hawaii's top individual income tax rate is 11.00% for 2026 (Tax Foundation); unless noted below, capital gains are taxed as ordinary income. | Tax Foundation - 2026 State Individual Income Tax Rates and Brackets |
| Special treatment of the gain | Hawaii caps the rate on net long-term capital gain at 7.25% through an alternative tax computation (HRS 235-51(f)), below the 11% ordinary top rate. | Tax Foundation of Hawaii - Individual income tax (HRS ch. 235) |
What business brokers charge
Main Street business brokers usually charge a success fee - a percentage of the sale price paid at closing - with a minimum fee; lower-middle-market M&A advisers often use tiered percentages and may charge an upfront retainer credited against the success fee. Few brokers publish their rates. Two that do: Empire Flippers (online businesses) charges 15% of the price up to $700,000, then 8% up to $5M and 2.5% above; Flippa charges a 10% success fee plus a listing fee. Use published schedules as a benchmark when you negotiate, and compare total cost if the deal does not close. See broker vs DIY for the fee math and our broker reviews.
How to vet a business broker in Hawaii
- Check the license
There is no business-broker license to check in Hawaii, so ask which licenses and credentials they hold and verify any real estate license if a lease or property is involved.
- Ask for closed deals like yours
How many businesses in your industry and size range did they close in the last two years, and at what share of asking price?
- Get every fee in writing
Success-fee percentage, minimum fee, any upfront, valuation or marketing fee, and whether buyers you bring trigger the fee.
- Limit exclusivity and the tail
Listing term (6-12 months is common) and the tail period after it ends during which a sale still owes a fee.
- Know who does the work
The person who pitches you should be the person who runs your deal.
- Know your number first
Run the valuation calculator so you can judge whether a broker’s suggested price is a listing tactic.
Selling a specific kind of business
Brokers and marketplaces you will run into
See what you would keep after Hawaii tax
Asset vs stock structure, price allocation and state tax.
Want help finding a vetted business broker in Hawaii?
Tell us about your business and what you need. We are building a list of vetted brokers and M&A advisers in Hawaii and will follow up personally with next steps. No obligation.
Frequently asked questions
Do business brokers need a license in Hawaii?
Hawaii is not on the commonly cited lists of states that require a license to broker a business sale, and we found no business-broker licensing statute. Anyone brokering real estate or a lease interest included in the deal still needs a Hawaii real estate license, and broker quality is unregulated - so vetting matters more.
How much tax will I pay on the sale of my business in Hawaii?
Hawaii’s top individual income tax rate is 11.00% for 2026 (Tax Foundation); unless noted below, capital gains are taxed as ordinary income. Hawaii caps the rate on net long-term capital gain at 7.25% through an alternative tax computation (HRS 235-51(f)), below the 11% ordinary top rate. Federal tax applies on top; model both with the after-tax proceeds calculator.
How much do business brokers charge?
Most charge a success fee as a percentage of the price with a minimum fee; few publish rates. Published examples: Empire Flippers 15% up to $700,000 (tiered down above that) and Flippa 10% plus a listing fee.
Can I sell my business without a broker in Hawaii?
Yes. Owners can sell their own business; licensing rules apply to people who broker a sale for others. You will still want a transaction attorney and CPA. See broker vs DIY.
Sources
- Business Brokerage Press - Business broker state licensing (accessed 2026-09-23)
- Tax Foundation - 2026 State Individual Income Tax Rates and Brackets (accessed 2026-09-23)
- Tax Foundation of Hawaii - Individual income tax (HRS ch. 235) (accessed 2026-09-23)
- Empire Flippers - Sell your online business (fees and requirements) (accessed 2026-09-23)
- Flippa - Pricing (accessed 2026-09-23)