LLC Administrative Dissolution and Involuntary Termination in Hawaii
At a glance
| Law, agency and LLC scope | Haw. Rev. Stat. §§ 428-809–811; business-registration director may administratively terminate a domestic LLC. |
|---|---|
| Grounds and trigger dates | Prescribed fee unpaid; annual report unfiled for two years; no appointed/maintained process agent; or missing statement of agent name/address change (§ 428-809). |
| Agency notice | Director may begin; must mail LLC notice stating grounds before termination and may also give public intent notice (§ 428-810(a)). |
| Cure or response window | Within 60 days after mailing of intent notice, correct every ground or demonstrate to director's reasonable satisfaction that each does not exist (§ 428-810(b)). |
| Action and effective date | If unresolved, director signs a decree reciting grounds and effective date and files it in the director's office (§ 428-810(b)). |
| Status, activity and service | LLC continues temporarily only to wind up, liquidate, and notify claimants; existence ceases when those tasks finish; process-agent authority survives (§ 428-810(c)–(d)). |
| Special routes and effects | Public notice of intent is optional; manager, member, or creditor may seek a circuit-court winding-up trustee, with last managers/members acting until appointment (§ 428-810(a), (e)). |
| Route back and limits | Apply within two years with missing reports, delinquent fees/penalties, and tax director writing showing payment, arrangement, or appeal; effective reinstatement relates back (§ 428-811(a), (c)). |
Requirements one by one
Grounds and response period
Section 428-809 distinguishes an unpaid prescribed fee from an annual report unfiled for two years. It also lists failure to maintain a process agent and failure to file a statement after the agent's name or business address changes. Before terminating the LLC, the director must mail notice of the grounds. The LLC then has 60 days after mailing to correct each ground or demonstrate that it does not exist (§ 428-810(a)–(b)).
The decree and temporary existence
The director's next step is a signed decree stating the grounds and effective date, filed in the director's office (§ 428-810(b)). The terminated LLC continues temporarily for winding up, liquidation, and claimant notice, then ceases existence after those matters are complete. Its process agent's authority survives the agency action (§ 428-810(c)–(d)).
What trips people up
Public notice of the intention to terminate is discretionary; the director's mailed notice to the LLC is mandatory (§ 428-810(a)). If the company's affairs need settlement after termination, a manager, member, or creditor may ask the circuit court to appoint a trustee. Until appointment, the last managers of a manager-managed LLC, or otherwise its last members, serve as trustees (§ 428-810(e)).
Common questions
Does one missed annual report terminate the LLC? No. The report ground in § 428-809(2) requires a two-year filing lapse, followed by notice and the 60-day response period.
Must all taxes be fully paid before reinstatement? The application must include a tax director's writing showing either payment, a payment arrangement, or that unpaid taxes are being contested in an administrative or judicial appeal (§ 428-811(a)(4)).
Statutes and sources
- Haw. Rev. Stat. § 428-809: The director “may commence a proceeding” for unpaid fees, a two-year report lapse, or the two specified agent failures. https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0428/HRS_0428-0809.htm (accessed 2026-09-26).
- Haw. Rev. Stat. § 428-810: The director must mail grounds notice, allow 60 days after mailing to cure or contest, and then sign and file a decree if the grounds remain. https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0428/HRS_0428-0810.htm (accessed 2026-09-26).
- Haw. Rev. Stat. § 428-811 and § 428-811(c): Apply within two years with back reports, delinquent payments, and the specified tax writing; effective reinstatement relates back. https://www.capitol.hawaii.gov/hrscurrent/Vol08_Ch0401-0429/HRS0428/HRS_0428-0811.htm (accessed 2026-09-26).
Source links
Every statute quoted above, linked, with the date we checked it.
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