Hawaii's switch to a new business registration system has backfired, badly hurting new and existing businesses across the state.

• The state's new online filing system went live in July but is riddled with problems, and a backlog of 40,000 filings has piled up.
• Registering a new business now takes months instead of days, leaving entrepreneurs unable to close property deals, open accounts, or start operating.
• The system's automated review tool was turned off because it was giving wrong statuses, so staff now have to process everything by hand.
• Established businesses and nonprofits are also stuck, unable to get the "good standing" certificates they need for loans and contracts, all while their expenses keep piling up.

Outlook: The state has added staff and hopes to clear the backlog by the end of the year, but businesses should expect weeks more delay in the meantime.