REPORT TITLE:
Limited Liability Companies


DESCRIPTION:
Clarifies the treatment of limited liability companies under the
employment security, workers' compensation, and temporary
disability statutes.

 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
 
                                                        
THE SENATE                              S.B. NO.           801
TWENTIETH LEGISLATURE, 1999                                
STATE OF HAWAII                                            
                                                             
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                   A  BILL  FOR  AN  ACT

RELATING TO LIMITED LIABILITY COMPANIES.
 


BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF HAWAII:

 1      SECTION 1.  Chapter 383, Hawaii Revised Statutes, is amended
 
 2 by adding a new section to be appropriately designated and to
 
 3 read as follows:
 
 4      "383-     Limited liability companies.  For the purposes of
 
 5 this chapter, a domestic or foreign limited liability company
 
 6 organized or registered to do business in the State under chapter
 
 7 428 shall be classified as a corporation or partnership or
 
 8 disregarded as an entity separate from its owner in the same
 
 9 manner as it elects to be classified for income tax purposes
 
10 under chapter 235."
 
11      SECTION 2.  Chapter 386, Hawaii Revised Statutes, is amended
 
12 by adding a new section to be appropriately designated and to
 
13 read as follows:
 
14      "386-     Limited liability companies.  For the purposes of
 
15 this chapter, a domestic or foreign limited liability company
 
16 organized or registered to do business in the State under chapter
 
17 428 shall be classified as a corporation or partnership or
 
18 disregarded as an entity separate from its owner in the same
 
19 manner as it elects to be classified for income tax purposes
 

 
Page 2                                                     
                                     S.B. NO.           801
                                                        
                                                        

 
 1 under chapter 235."
 
 2      SECTION 3.  Chapter 392, Hawaii Revised Statutes, is amended
 
 3 by adding a new section to be appropriately designated and to
 
 4 read as follows:
 
 5      "392-     Limited liability companies.  For the purposes of
 
 6 this chapter, a domestic or foreign limited liability company
 
 7 organized or registered to do business in the State under chapter
 
 8 428 shall be classified as a corporation or partnership or
 
 9 disregarded as an entity separate from its owner in the same
 
10 manner as it elects to be classified for income tax purposes
 
11 under chapter 235."
 
12      SECTION 4.  New statutory material is underscored.
 
13      SECTION 5.  This Act shall take effect upon its approval.
 
14 
 
15                           INTRODUCED BY:  _______________________