LLCs and Nonprofit Organizations -- For-Profits, Non-Profits, and Hybrids
34 Pages Posted: 6 Mar 2009
This article deals with the LLC in the context of nonprofit organizations, both as a legal entity in which a nonprofit organization may be a member and as an organization that may, itself, be organized as a nonprofit organization, or a hybrid organization - one that may be organized for a purpose that is neither exclusively for-profit nor exclusively non-profit. Most legal organizations are created pursuant to a state law, referred to in this article as an "organic statute." Unlike partnerships and business corporations under the Model Business Corporation Act, LLCs (and - more recently - limited partnerships) do not need to be organized for profit.
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