Updated December 08, 2021
A Hawaii single-member LLC operating agreement is a legal document that is generally utilized by a sole proprietor to provide company establishment and ownership. The document will also establish procedures, policies, as well, the purpose of the company.
The state of Hawaii does not require that business to implement this document. Should the member decide against putting the document into place, the member/owner could find that their personal assets would be vulnerable for collection of business expenses in the event of a business failure or any type of litigation. If, in fact, the document is implemented, the owner’s assets would be protected from litigation. Having this document in place will also provide tax benefits that would otherwise be unavailable.