10 Pages Posted: 21 Jan 2014
Date Written: January 20, 2014
Any entrepreneur starting a new venture will inevitably have to address issues of entity formation as well as fundamental tax and legal planning. Prior to existence of the Low-Profit Limited Liability Company, commonly referred to as the “L3C,” entrepreneurs with social objectives seeking to formalize their businesses legally were limited in choice between either nonprofit or for-profit private company structures. While each of these organizational structures has their own benefits and drawbacks, social entrepreneurs are often left without a business form designed for their unique business models. In order to address this dilemma, the L3C is designed to combine benefits of both the non-profit and for-profit business structure into one single entity.
Keywords: law, legal, L3C, low profit, social, entrepreneurs, LLC, Company
Suggested Citation: Suggested Citation
Hopkins, Jamie Patrick, Low-Profit Limited Liability Companies: High-Risk Tax Fad or Legitimate Social Investment Planning Opportunity? (January 20, 2014). 2014 Cardozo L. Rev. de novo 35.. Available at SSRN: https://ssrn.com/abstract=2382142