HRS §428-403
Getting paid back and paid for work in an LLC
An LLC must pay back members or managers for money they spent on company business or to protect company property. It must also repay a member for extra money advanced beyond their agreed contribution. These payments are treated as loans with interest. Members do not get paid for regular work, except reasonable pay for closing the business.
The statute, as written — Member's and manager's rights to payments and reimbursement
(a) A limited liability company shall reimburse a member or manager for payments made and indemnify a member or manager for liabilities incurred by the member or manager in the ordinary course of the business of the company or for the preservation of its business or property. (b) A limited liability company shall reimburse a member for any advance to the company which exceeds the amount of contribution the member agreed to make. (c) A payment or advance made by a member which gives rise to an obligation of a limited liability company under subsection (a) or (b) constitutes a loan to the company upon which interest accrues from the date of the payment or advance. (d) A member is not entitled to remuneration for services performed for a limited liability company, except for reasonable compensation for services rendered in winding up the business of the company.
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