HI SB674

Adds a new definition of "L3C" or "low-profit limited liability company" to Hawaii's limited liability company law, requiring the company to significantly further charitable or educational purposes and would not have been formed without that charitable relationship.

Prohibits low-profit limited liability companies from having a significant purpose of producing income or appreciating property, though income or capital appreciation alone does not conclusively establish this as a significant purpose.

Prohibits low-profit limited liability companies from having any purpose of accomplishing political or legislative purposes as defined under federal tax code.

Requires low-profit limited liability companies to include the abbreviation "L3C" or "l3c" in their company name, distinguishing them from standard limited liability companies that must use "LLC" or "limited liability company."

Provides that if an L3C ceases to meet any of the four requirements, it immediately loses L3C status but continues to exist as a regular limited liability company and must change its name accordingly.