A Limited Liability Company (LLC) is a business structure allowed by state statute. Each state may use different regulations, so you should read the relevant state statutes if you are interested in forming an LLC.

Owners of an LLC are called members. Most states do not restrict ownership, so members may include individuals, corporations, other LLCs and foreign entities. There is no maximum number of members. Most states also permit single-member LLCs—those having only one owner.

A few types of businesses generally cannot be LLCs, such as banks and insurance companies. Check your state’s requirements and the federal tax regulations for additional information. There are special rules for foreign LLCs.

In Hawaii, a Limited Liability Company (LLC) is a popular business structure due to its flexibility and protection for its members against personal liabilities. The formation and operation of LLCs in Hawaii are governed by the Hawaii Revised Statutes, specifically Chapter 428, known as the Hawaii Uniform Limited Liability Company Act. Hawaii does not restrict ownership, so members can include individuals, corporations, other LLCs, and foreign entities. There is no limit on the number of members, and single-member LLCs are permitted. Certain businesses, such as banks and insurance companies, may not be formed as LLCs in Hawaii. Those interested in forming an LLC in Hawaii should also consider federal tax regulations, as they will affect the taxation of the LLC. Additionally, foreign LLCs that wish to do business in Hawaii must register with the state and comply with specific regulations applicable to foreign entities.