L3C: Business with a (Social) Mission – What You Need to Know

For socially-conscious entrepreneurs wanting to do well and do good, there is a new business entity. L3Cs are limited liability companies with both for-profit and charitable aspects to their legal structure. Want to create a business with a social impact? Read what JD Supra lawyers are saying about this new corporate entity already approved in many states:

New Hybrid Business Entities Combine Businesses, Social Missions (Davis Wright Tremaine LLP)

“A social entrepreneur has a mission: to launch a successful business, but also to combine profitability with a broader societal purpose. Whether that purpose is environmental sustainability or fair trade, it may not always be compatibility with maximizing profits.” Read more »

L3C and B-Corps (Sands Anderson PC)

“Anyone who is at all active in the Triangle business community knows we are a breeding ground for social enterprise – companies that are formed to achieve a social purpose as well as make a living for the founders. Social entrepreneurs have two cutting edge resources to available to them in North Carolina — the L3C and the B corporation.” Read more »

L3Cs – New Kid on the Company Block (Jack Santaniello)

“An L3C is a legal form of business entity created to bridge the gap between non-profit and for-profit investing by combining the financial advantages of the limited liability company (LLC) with the social advantages of a non-profit entity. An L3C runs like a regular business and generates profits. However, the primary focus of the L3C is not to make money, but to achieve socially beneficial objectives.” Read more »

Dangers and Opportunities: Navigating Nonprofit Partnerships, Collaborations, Joint Ventures and More (Venable LLP)

Slideshow from presentation on risks and benefits of creating non-profit and low-profit business entities. Read more »

Birth Announcement for L3Cs – Innovative Structure Combining Charitable Mission and Business (Gammon & Grange, P.C.)

“A new legal entity has been born and nicknamed ‘L3C’ because ‘low‐profit limited liability company’ is a mouthful for even the most adoring parent. Affectionately christening this new entity ‘for‐profit with the nonprofit soul,’ several states have already adopted legislation that provides for this specialized kind of a limited liability company.” Read more »

Introducing the Low-Profit Limited Liability Company (L3C): The New Kid on the Block (Cody Vitello)

“This article explores the newly statutorily created business organization called the low-profit limited liability company (L3C). L3Cs combine for-profit capitalization with a nonprofit’s soul. Enjoy!” Read more »