Low-profit Limited Liability Company
= L3C, business governance in Vermont, for 'mission-driven' companies
"growing interest in hybrid business models has spurred recent efforts at the state level to create new corporate structures that allow entrepreneurs to integrate nonfinancial goals into for-profit businesses. "The intentions of entrepreneurs and investors have evolved over time to include a desire to create social value as well as shareholder value," says Jay Coen Gilbert, co-founder of B-Lab, a Berwyn (Pa.) nonprofit that certifies mission-driven companies. "Corporate law has not evolved to serve these new needs."
One new form, known as the Low-profit Limited Liability Company (or L3C), is intended for companies that put their missions before profits. The structure lets them qualify for "program-related investments" from foundations—loans or investments that further a foundation's goals and also may yield financial returns. First adopted in Vermont in April 2008, the L3C is now also on the books in Michigan, Utah, and Wyoming. There are 53 L3Cs in Vermont and a handful in other states so far." (http://www.businessweek.com/smallbiz/content/jun2009/sb20090615_940089.htm?)