Inside this

Issue:
S p r i n g / S u m m e r 2 0 1 4
I
recently moved to Honolulu from Shanghai, China, and joined Damon Key as an attorney
in May. While in China, I worked as a business and transactional lawyer for over a decade.
In moving to Hawaii, Chinese friends and clients often ask me questions about moving here,
investing here and doing business here. Below please find short answers to many of these
questions:
Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
Bridging the Gap
Assisting The
Japanese Investor
Immigration
News-Overview
of DACA Program
Introducing
Sara E. Coes:
Cultural
Understanding
Family Law
Practice
Christopher J.I.
Leong Presents
His Art of
Persuasion at
Damon Key
Continued on page 2
By Sara E. Coes

Providing clients
worldwide access
to sophisticated
legal advice and
exceptional service.

Answers to Frequently Asked Questions from Chinese Clients

Can I obtain a U.S. Green Card through investment?
Yes, many Chinese investors obtain Green Cards through the EB-5 program. Nearly all EB-5
investors do this through $500,000 investments in regional center projects which must create 10
new jobs per investor for American workers. The investment is at risk and the source of funds
must be proven as lawful. Candidates for EB-5 must have a net worth of at least $1 million or
a high annual income. Before choosing an EB-5 investment program, we recommend that you
consult with an attorney and do thorough due diligence on any investment to be sure it meets
all EB-5 requirements.
EB-5

EB-5

What are other ways I can get a visa to live in Hawaii?
In addition to the EB-5 program, there are a few other ways to come live and work in Hawaii.
One is the H-1B specialty occupations visa for people with college degrees to work for
American employers. Another is the L-1 visa which allows companies to send a foreign manager
or executive to the U.S. to work. This may be relevant if a Chinese company were to purchase
a local company in Hawaii or if a Chinese company decided to set up a Hawaiian subsidiary.
EB-5

H-1BL-1

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Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
Continued from cover

How do I start a company in Hawaii?
Starting a company in Hawaii is achieved through a simple government filing. There are many forms of
business enterprises. Most investors choose either a corporation or limited liability company (LLC). Both
types of companies will have required annual government filings. In Hawaii the business scope of a company
is everything that is allowed under the law. Certain types of businesses however require special permits or
specially licensed staff. In Hawaii these restrictions are adhered to and enforced, so it is best to know what
licenses are required before embarking on a new business.

Can I buy real property in Hawaii?
Yes, there is no restriction on non-U.S. citizens buying real property in Hawaii or on how many apartments or
houses can be owned. Some of the local banks in Hawaii offer mortgages to overseas investors. Hawaii has
properties that are both leasehold and fee simple. If you purchase a fee simple property, this property will be
yours in perpetuity.

What do I need to know about U.S. taxes?
If you become a U.S. citizen or Green Card holder, you will need to file U.S. taxes annually and declare your
worldwide income to the United States Internal Revenue Service (IRS). You will also be required to give
information to the IRS about your bank accounts and investments outside the U.S. There are serious penalties
for failing to do so. If you remain a non-resident of the U.S., you will still be required to file U.S. and Hawaii
taxes for any income you earn in Hawaii. Moreover, any company you establish in Hawaii will have annual U.S.
tax filing obligations.

Any other advice about a move to or investment in Hawaii?
While Hawaii is built on relationships, similar to China, compliance with the law and contract terms is paramount.
When you come to Hawaii, make sure any promises or requirements you agree with a counterparty are put into
a signed document; make sure you understand any obligations, risks and liabilities you are undertaking. Do not
be afraid to ask questions.

For more information on this article, please call Sara ()

at 531-8031 ext 611, email her at sec@hawaiilawyer.com
or scan the code with your smartphone.
3
Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
D
amon Key has assisted foreign investors in establishing their businesses in Hawaii for
many years. When the investors are from a non-English speaking country, the maze
of U.S. global change laws and procedures are extra challenging. Being able to commu-
nicate the differences in their native tongue and understanding their business culture have
been strong points when we problem-solve for clients.
Assisting The Japanese Investor
There are a few basics that I share with clients and
potential clients about investing in Hawaii. Simple but
often forgotten are: (1) read and understand what you
are signing; (2) look at the big picture and the long-term
effects - what is good for operations may be bad for
immigration and what may be good for immigration
may be bad for tax planning; (3) if you dont know ask;
(4) promises made should be in writing; (5) what is your
role and the consultants role - who pays for what; and
(6) confirm the value of the asset you are purchasing.
The basic questions that we ask are the same as
what we would ask any entrepreneur. Who is the
investor? What is the purpose? Long term or short
term? Are there immigration issues? How many
employees will you need? Location and target market?
Insurance and tax issues? What are your thoughts on
estate planning? The only difference is that for each
step the foreign investor is surrounded by unfamiliar
concepts. Often the investor will be so happy to be
in Hawaii they will believe what is presented without
confirmation and get into trouble. We caution them
about the litigious environment and that justice is
expensive. The more precautions you take at the
beginning of your journey, the easier your journey
will become.
It is our goal to assist our clients to transition into
Hawaii life as smoothly as possible but we also remind
them that there is a lot of work involved. Damon Key
takes pride in our ability to help those with language
and cultural barriers realize their dreams.

, ; 1.
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; 3.
; 4. ; 5.
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; 6.

By Christine A. Kubota
For more information on this article, please call Christine A. Kubota
at 531-8031, ext 613, email her at
cak@hawaiilawyer.com or scan the code with your smartphone.
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Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
W
hile comprehensive immigration reform remains elusive, two years ago President
Barack Obama announced an important new program that provides temporary relief
for certain people who came to the United States as children and lack lawful immigration
status. The Deferred Action for Childhood Arrivals program, or DACA, is open to those
who were born after 6/16/1981, came to the U.S. under the age of 16 and were less than 31
years old on 6/15/2012. Additionally, to qualify for DACA an individual must show a period
of continuous residency in the U.S., meet specific educational and/or military service requirements, and have not
been convicted of certain crimes or pose a threat to national security or public safety. A DACA grant provides two
years of temporary relief from the fear of deportation and eligibility for work authorization.
Since DACA was created, the United States Citizenship and Immigration Services (USCIS) has approved
approximately 550,000 applications from young undocumented immigrants. The two-year anniversary of DACA
comes in August 2014, when early DACA grantees will need to begin applying for renewals. In Hawaii, almost 300
people have applied for DACA, and more than 220 of those applications have been approved. While the largest
groups of applicants nationwide have come from Latin America, a significant number of young people from South
Korea and the Philippines have also benefitted from the program. We believe there are many more living in the
shadows who would benefit from DACA. Fear, shame, isolation and lack of information are the likely factors that
keep people from coming forward for advice.
As with any application with USCIS, there might be risks involved, and its best to have professional assistance
to evaluate those risks. Lawyers in Damon Keys Immigration Practice Group are happy to provide a free consulta-
tion to see if you or a loved one may be eligible for DACA.
Aunque la reforma comprensiva de la inmigracin sigue elusiva, hace dos aos el Presidente Barack Obama
anunci un nuevo programa importante que provee una solucin temporal para ciertas personas que llegaron a
los Estados Unidos como nios y faltan estatus legal de inmigrante. El programa Accin aplazado de llegadas
infantiles (Deferred Action for Childhood Arrivals), conocido como DACA, est abierto a los que nacieron despus
del 16/6/1981, llegaron a los EEUU debajo de la edad de 16 aos y tenan menos de 31 aos el 15/6/2012.
Adicionalmente, para calificar para DACA un individuo debe mostrar un perodo de residencia continua en los
EEUU, cumplir con requisitos especficos educacionales o de servicio militar, y no haber sido condenado de
ciertos crmenes o de posar una amenaza a la segurudad nacional o al pblico. Una beca DACA provee dos aos
de libertad contra el miedo de estar deportado y dos aos de elegibilidad para autorizacin de trabajar.
Desde que se cre DACA, los Servicios de Ciudadana e Inmigracin de los EEUU (United States Citizenship
and Immigration Services) (USCIS) ha aprobado aproximadamente 550.000 solicitudes de jvenes inmigrantes
sin documentos. El segundo aniversario de DACA llega en agosto de 2014, cuando los primeros becarios de
DACA tendrn que comenzar a solicitar renovaciones. En Hawaii, casi 300 personas han solicitado DACA, y
de ellos ms de 220 han sido aprobados. Mientras que los grupos ms grandes en todo el pas han llegado de
Amrica Latina, un nmero importante de jvenes de Korea del Sur y de las Filipinas tambin han disfrutado
del programa. Creemos que hay muchos ms viviendo en las sombras que disfrutaran de DACA. El miedo,
la vergenza, el aislamiento y la falta de informacin son probablemente los factores que bloquean que la gente
se presente para consejos.
Tanto como cualquier solicitud al USCIS, puede que haya riesgos, y es mejor
tener ayuda profesional para evaluar tales riesgos. Los abogados de Damon Key
Immigration Practice Group (Grupo de prctica de inmigracin Damon Key) estarn
encantados proveerles una consulta gratuita para ver si Usted o sus seres queridos
pueden ser elegibles para DACA.
Immigration News - Overview of DACA Program
For more information on this article, please call Clare
at 531-8031 ext 617, email her at cmh@hawaiilawyer.com
or scan the code with your smartphone.
By Clare M. Hanusz
n May 2014, Damon Key welcomed Sara E. Coes to the firm. An accomplished
lawyer with strong negotiation and contract skills, she practices in the areas of
business and commercial law, real estate and estate planning. Sara has over a
decade of legal experience in business and transactional matters in Asia and the
United States. She is fluent in Mandarin Chinese and her unique skills benefit both
Chinese-speaking clients seeking legal services in Hawaii and clients who are
negotiating with Chinese nationals.
With her comprehensive understanding of the Chinese business culture
and her past success in helping to forge transactions between businesses in
the U.S. and Asia, Sara is a valuable addition to our team, said Michael
Yoshida of Damon Key. Sara, along with all our skilled bilingual attorneys,
is able to help bridge cultural and linguistic gaps that sometimes exist
when our clients pursue foreign business plans and transactions.
A native New Yorker, Sara earned her bachelors degree in economics/
political science, magna cum laude, from Columbia University. She then
spent a year teaching English in China before entering Columbia University
School of Law. While pursuing her law degree, she spent two summers at
international law firms in China. Sara admits that, by this time, she had
caught the China bug.
In 2000, with J.D. in hand, Sara set her sights on launching a legal
career in Asia. However, understanding the importance of receiving good
legal training prior to arriving there, she first joined the New York office of
international law firm Freshfields Bruckhaus Deringer as an attorney. Three years later, Sara transferred to the
firms Shanghai office where she was promptly assigned a $500 million deal. Thanks to her solid training in
New York, she was ready for the challenge and her career in Asia was successfully launched. While at the firm,
Sara focused on mergers and acquisitions, foreign direct investment, project finance and structured finance
transactions.
Sara went on to work for Honeywell International, Inc., in its Asia Pacific headquarters, most recently serving
as a General Counsel. In this capacity, she oversaw legal support for Honeywell Aerospaces Asia Pacific
Integrated Supply Chain, which included fourteen Asia Pacific sites and all sourcing activities in the region.
A few of Saras key accomplishments include supporting the negotiation and set up of joint ventures that will
supply systems for the COMAC C919 aircraft, standardizing contract forms and review processes to reduce risk
and increase efficiency, and leading initiatives to train and educate employees in the areas of critical business
knowledge protection and overall integrity and compliance.
After more than a decade living and working in Asia, Sara and her husband, Xiaojun Dong of China, decided
it was time for their family to leave Shanghai. They agreed that Hawaii would be a good fit for themselves, their
three daughters and their dog. True to her strategic nature, Sara then took the necessary steps to make that
happen. She passed the Hawaii Bar Exam, networked and then joined Damon Key.
While Sara found the large business environment fascinating and rewarding, she looks forward to returning to
work at a firm. Working in a firm is more entrepreneurial in nature and Ill be helping people versus helping
stock prices thats attractive to me, said Sara. She also looks forward to becoming involved in a variety of
Hawaii-based community and professional organizations.
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Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
Introducing Sara E. Coes:
Cultural Understanding
I
6
Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
I
recently presented a short overview of some of the practical aspects of family law
in Hawaii in an effort to address common questions which occur well before people
decide that they have an issue which they should discuss with a family law attorney.
I present these short summaries for your information and to stimulate your thoughtful
consideration.
Family Law Practice
Creating Families with Children: Children are
born with married or unmarried parents and the law
still retains many special and often seemingly archaic
rules for the children of unmarried parents. Hawaii
law now allows consenting unmarried biological
parents to legally establish the paternity of their
newborn at the hospital provided the mother is not
legally married to anyone else on the date of birth.
Where she has a living and undivorced spouse
somewhere in the world, special procedures are
required in order for the newborns biological father
to establish his father-child relationship. This comes
as a shock to many men who are ready, willing and
able to assume their parental duties but find they
cannot be legally recognized as their newborns
father until the birth mothers husband is judicially
determined NOT to be the babys biological father.
This is known as disestablishing paternity. Where
birth mother is not interested in cooperating with her
new babys father to establish his relationship to her
newborn, the issues become more factually and
legally complex.
Pro Se Divorces and Afterward: With the populari-
ty of online legal advice, the proliferation of forms
websites (including those of the Hawaii Judiciary at
www.courts.state.hi.us), and the cost of legal services,
many people are filing their own divorce paperwork
and not hiring attorneys. This may be completely
reasonable for couples where there are no joint debts
or assets and no children, however a substantial
portion of my practice is fixing situations after the
divorce is final where the parties forgot to address
issues such as: claiming the dependent tax exemption;
paying for college; paying for visitation transportation
expenses when both parents do not remain on Oahu;
unexpected and uninsured health care expenses;
jointly making decisions and many others.
I typically provide new divorce clients with a
laundry list of the issues they need to discuss
if at all possible with their soon-to-be-ex-partner.
They are frequently shocked by the research and
homework and negotiation which will be needed
to address all of the issues in a cooperative manner.
The typical Uncontested Divorce Action (which
does not require a court appearance), is now taking
at least 90 days from the date of delivery to the
Oahu Family Court until the Divorce Decree is filed
and the couples divorce is final. Departing Oahu
(or scheduling a new wedding!), based upon a
quick turn-around and automatic approval is
not recommended. When the Family Court judges
determine that the proposed settlement is not fair
and equitable or there are other questions or
irregularities, the case is scheduled for a hearing
and both parties must physically appear at the
Kapolei Family Court.
CONCLUSION
All of the above issues are a regular part of my
family law practice.
By Judith A. Schevtchuk
If you or someone you know would like a confidential
consultation to discuss these or similar issues, please call my
Legal Assistant, Leah Corpuz at (808) 531-8031 ext 645, or email me
at jas@hawaiilawyer.com or scan the code with your smartphone.
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Damon Key Leong Kupchak Hast er t 1003 Bi shop St r eet Sui t e 1600 Honol ul u, Hawai i 96813
Tel ephone ( 808) 531- 8031 Facsi mi l e ( 808) 533- 2242 Websi t e www. hawai i l awyer. com
Christopher J.I. Leong Presents His Art of
Persuasion at Damon Key
C
Rail is Coming and Were Ready.
The rail project is generating legal issues in eminent domain, construction
and procurement, and environmental law. For half a century, Damon Key
Leong Kupchak Hastert has been at the forefront of providing creative solutions
and being forceful advocates in all these areas. The firm represents a number
of property owners along the route whose parcels have been designated for
acquisition for the project.
For more information about how the Honolulu rail project may impact
your property, home, or business, and how Damon Keys eminent domain
lawyers can assist, please call Robert H. Thomas or Mark M. Murakami at
(808) 531-8031, or visit us at www.hawaiilawyer.com.
Find out more about rail issues by
visiting hawaiilawyer.com/rail, or use
your smartphone toscan the code.
hristopher J.I. Leongs long-held passion for speech and debate has led him
to the legal career he enjoys today as a new associate at Damon Key Leong
Kupchak Hastert. Christopher, who graduated cum laude from the William S.
Richardson School of Law, practices in the firms Litigation and Alternative
Dispute Resolution Practice Group.
We are pleased to welcome Christopher to the firm where we know he will
deliver first-rate litigation and dispute resolution services to our clients, said
Michael Yoshida of Damon Key. He is a skilled attorney with a zeal for success
inside and outside of the courtroom.
Prior to joining the firm, Christopher served as law clerk to Associate Justice
Paula A. Nakayama of the Hawaii Supreme Court. Previous to earning his legal
degree, he spent two years in Japan as an assistant language teacher on the
Japan Exchange and Teaching (JET) Program.
While in law school, Christopher served as Co-Editor-in-Chief of the University
of Hawaii Law Review and received three CALI Excellence for the Future Awards.
He received his bachelors degree in Foreign Languages, magna cum laude, from
Lewis & Clark College. While pursuing his undergraduate degree, he studied abroad in China and Japan.
Christopher currently volunteers with the Hawaii Speech League where he serves as a judge at high school
speech and debate tournaments. He first sharpened his skills in the art of persuasion as a member of the
debate team at Iolani School. His knack for public speaking and presentations, combined with a passion
for extensive reading, writing and research, served as a natural bridge to the legal profession.
Christopher is a member of the JET Program Alumni Association of Hawaii. He has many Asian-inspired
interests and is a long-time auto enthusiast, attending the Tokyo Motor Show three times in recent years.
1003 Bi shop Street, Sui te 1600
Honol ul u, Hawai i 96813
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If you would not like to receive a printed
copy of the Legal Alert, but would like to
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Legal Alert is published periodically by Damon Key Leong Kupchak Hastert to inform clients of legal matters of general interest. It is not intended to provide legal advice or opinion.
A D V E R T I S I N G M A T E R I A L
A t t o r n e y s i n t h e N e w s
Sara E. Coes spoke in June at the Hawaii
Society of Enrolled Agents. Her topic was an
overview of the main steps and legal documents
involved in buying or selling a private company.
Clare M. Hanusz has been elected Hawaii
Chapter Chair for the American Immigration
Lawyers Association (AILA). As Chapter Chair,
she will also sit on the AILA Board of Governors.
Robert H. Thomas has been appointed as
the Planning Co-Chair for the American Law
Institute-CLEs annual national conference on
Condemnation Law, Eminent Domain and
Land Valuation Litigation. Now in its 32nd
year, the ALI-CLE conference brings together
the countrys top eminent domain lawyers and
appraisers for three days of expert programming.
Thomas has been on the faculty for a number
of years, and joins Joseph Waldo of Norfolk,
Virginia as co-Chairs of the conference.
Thomas recently presented an article he co-
authored with Damon Key attorney Matthew
T. Evans Recent Developments in Regulatory
Takings at the Spring meeting of the American
Bar Associations Section of State and Local
Government Law in Asheville, North Carolina.
The article is slated for publication later this
year in The Urban Lawyer.
Hawaii Business Magazine reported on Damon
Keys legal blogs in its April 2014 edition.
Hawaii-Focused Legal Blogs, is about the
four blogs the firms lawyers write and publish,
HawaiiOceanLaw.com (Mark M. Murakami),
HawaiiConstructionLaw.com (Anna H. Oshiro),
InsuranceLawHawaii.com (Tred R. Eyerly), and
InverseCondemnation.com (Robert H. Thomas).
Visit http://www.hawaiibusiness.com/Hawaii-
Business/April-2014/Hawaii-Focused-Legal-
Blogs/ for the story.