HRS §425-161
Foreign limited liability partnerships: what happens if they do not qualify
This section says what happens when an out-of-state limited liability partnership does business in Hawaii without filing a statement of foreign qualification. It cannot sue in Hawaii, but its contracts still work, it can defend itself, and partners keep their liability protections. The director becomes its agent for lawsuits from Hawaii business.
businesses
The statute, as written — Foreign limited liability partnerships; effect of failure to qualify
(a) A foreign limited liability partnership engaged in the transaction of business in this State shall not maintain an action or proceeding in this State unless it has in effect a statement of foreign qualification. (b) The failure of a foreign limited liability partnership to have in effect a statement of foreign qualification shall not impair the validity of a contract or act of the foreign limited liability partnership or preclude it from defending an action or proceeding in this State. (c) A limitation on personal liability of a partner is not waived solely by the transaction of business in this State without a statement of foreign qualification. (d) If a foreign limited liability partnership transacts business in this State without a statement of foreign qualification, the director shall be its agent for service of process with respect to a right of action arising out of a business transaction in this State.
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