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An LLC is a limited liability company. It is one of the most flexible entities and it is not a partnership or corporation. It is created by filing Articles of Organization with the Business Registration Division.
Is an operating agreement required in Hawaii? No. Hawaii Revised Statute § 428-103 states that members of an LLC may enter into an operating agreement but doesn't say that they must. However, if you don't have an operating agreement, your LLC will be governed by the Hawaii Uniform Limited Liability Company Act.
LLC operating agreements usually provide much more information, and almost all the provisions for how the business will be managed, and the rights, duties, and liabilities of members and managers are contained in the operating agreement. An operating agreement is a private document.
By default, a Hawaii LLC is taxed by the Internal Revenue Service (IRS) based on the number of Members the LLC has. Then the Hawaii Department of Taxation honors this and taxes your LLC the same way at the state level. An LLC with 1 owner (Single-Member LLC) is taxed like a Sole Proprietorship.
A Hawaii LLC Operating Agreement is a written contract between the LLC Members (LLC owners). This legal document includes detailed information about membership structure, who owns the company and how the LLC is managed.
An operating agreement is a document that outlines the way your LLC will conduct business. You aren't required to file an operating agreement in Hawaii, but it is an essential component of your business.