Low Profit Limited Liability Companies
Description
"On April 30, 2008, Vermont became the first state to recognize the L3C as an official legal structure, and similar legislation has since been pushed in other states. An L3C has an explicit primary charitable mission and only a secondary profit concern. But unlike a charity, the L3C is free to distribute the profits, after taxes, to owners or investors." (http://socialbusiness.socialgo.com/magazine/read/emerging-legal-structures-indicate-growing-awareness-of-need-for-social-business_1.html)
Examples
Illinois
"Lane drafted an Illinois law that allowed for the creation of low profit limited liability companies (L3C’s) in the state. The law, he says, May facilitate program-related investments and engage diverse stakeholders around a clear and unambiguous ordering of statutorily imposed charitable or educational priorities that can’t be waived or negotiated away.
L3C’s have received broad support. “[They are] the only business form in the United States that permanently and irrevocably places mission above all other objectives,” he explains. The intention is to encourage a focus on job creation, community revitalization, workforce development and entrepreneurship." (http://www.seechangemagazine.com/?p=3521)