L3Cs: Bringing Change or in Need of Change?

Pennsylvania Bar Association Young Lawyer's Division, At Issue Newsletter, Spring 2012

3 Pages Posted: 7 Mar 2013 Last revised: 4 Jun 2013

See all articles by Jamie Hopkins

Jamie Hopkins

The American College

John A. Pearce

Villanova University

Date Written: 2012

Abstract

The low-profit, limited liability company (“L3C”) is a hybrid social and business entity not entirely for-profit or entirely not-for-profit. Referred to as a “for-profit with the nonprofit soul,” an L3C is a “specifically branded LLC” governed by a state’s Limited Liability Company (“LLC”) laws. The L3C model is enabled by a definitional addition to LLC statutes, imposing additional state-law obligations. The L3C model is an attempt to enable socially responsible businesses to access funding previously unavailable to charities. As the L3C model is more regularly adopted, it is important to understand the benefits and drawbacks associated with operating as one.

Keywords: L3C, Low, Profit, Limited, Liability, Company, Low-Profit, Limited Liability, LLC, Low Profit Limited Liability Copmany, Hybrid, Hybrid Entitity, Legal, Entitiy, social, government, tax, taxation, charity, law, legal

Suggested Citation

Hopkins, Jamie and Pearce, John A., L3Cs: Bringing Change or in Need of Change? (2012). Pennsylvania Bar Association Young Lawyer's Division, At Issue Newsletter, Spring 2012, Available at SSRN: https://ssrn.com/abstract=2229430

Jamie Hopkins (Contact Author)

The American College ( email )

Bryn Mawr, PA 19010
United States
610-526-1441 (Phone)

HOME PAGE: http://www.theamericancollege.edu/why-us/faculty/jamie-patrick-hopkins-esq.-j.d.-m.b.a

John A. Pearce

Villanova University ( email )

Villanova, PA 19085
United States

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