07/26/2022
Today, many business are choosing to structure their business as a limited liability company (LLC). So what is an LLC and why are so many business owners deciding to go with LLCs?
LLCs are a "creatures" of state law. LLCs are created and governed according to individual state laws. In Hawaii, LLCs are created by completing and filing certain documents with the Department of Commerce and Consumer Affairs.
Secondly, LLCs have become popular business entities because it limits the amount of debts, obligations, and liabilities of its owners. This is attractive to business owners because creditors are generally unable to touch the personal assets of the owners with respect to the business' debts, obligations, or liabilities. A word of caution, however, is that there are exceptions to these protections.
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