The arithmetic in a Hawaii LLC operating agreement is small, and it is where most home-drafted agreements disagree with themselves: an ownership clause that does not follow from the contributions, a distribution clause that ignores the reserve, a voting threshold nobody translated into names. This page works those figures for a surf school in Hawaii owned by two instructors and the owner of the beachfront kiosk, so the members' $85,000 of capital, their profit and their chosen thresholds come out as shares, distributions and a vote that agree with each other. The free worksheet on this site does the same from your own figures with no account. What the state requires the agreement to say, and what it charges, are the filing office's and your attorney's; this page publishes neither.
Distributions after a reserve, on the profit the members enter
For a surf school in Hawaii, formed by two instructors and the owner of the beachfront kiosk, most agreements let the company keep a reserve before anything is distributed, then split what is left by ownership. With $130,000 of profit and a 10% reserve, $117,000 is distributable and the largest member's share of it is $55,059. Whether a Hawaii company distributes at all, and when, is the members' decision under their own agreement; the worksheet works the figure and publishes no rule about it.
The vote a major decision needs, as capital that must say yes
A major-decision clause names a share of ownership, and the worksheet turns it into money and names. At a 65% threshold on $85,000 of capital, $55,250 of contributions must vote yes, which with shares of 41.2%, 47.1% and 11.8% means particular members and not others. What a Hawaii agreement should set the threshold at is the members' call and their attorney's; the arithmetic is the same at any number.
The contribution schedule is the clause the rest reads from
A Hawaii LLC operating agreement usually opens with the members and what each put in, and every later clause reads from that schedule. On the worked example, three members contributing $35,000, $40,000 and $10,000 own 41.2%, 47.1% and 11.8% of the company. The worksheet takes the contributions and returns the shares, so the ownership clause is worked from the contribution clause rather than typed in beside it and later found to disagree.
Where a Hawaii agreement's rules live, and where its numbers do
Whether Hawaii requires a written operating agreement, what it must contain and what the state charges to form or maintain the company are questions for the Hawaii Business Registration Division, named below, and for your attorney; this page publishes no rule text, no fee and no legal advice. What it does publish is the arithmetic the agreement records: the shares from the contributions, the distributions from the profit and the capital a decision needs, worked free on this site from the members' own figures, and kept against the company by LLC Lane Pro when the members want the record.
Questions people ask about llc operating agreement hawaii
Where do I find what Hawaii requires an operating agreement to contain?
At the Hawaii Business Registration Division, linked below, and from your attorney. This site publishes the arithmetic the agreement records and nothing about what the state requires the wording to say.
Can the members split ownership differently from their contributions?
Yes, if the agreement records the agreed split. The worksheet shows what the contributions alone imply, so a different split is a decision the members have seen rather than an accident in the blanks.
Does the worksheet store my Hawaii company's figures?
The free worksheet stores nothing and needs no account; it works the figures on the page and prints them. LLC Lane Pro keeps every company, member and agreement against the record for the members who want the history.