Nonprofit and Charitable Uses of LLCs

Research Handbook on Partnerships, LLCs and Alternative Forms of Business Organizations, Robert W. Hillman & Mark J. Loewenstein, Eds., Edward Elgar Publishing (2015, Forthcoming)

43 Pages Posted: 21 Mar 2015 Last revised: 21 May 2015

See all articles by Cassady V. Brewer

Cassady V. Brewer

Georgia State University - College of Law

Date Written: March 18, 2015

Abstract

The overwhelming first choice in new, for-profit business entity formations is the limited liability company (“LLC”). Less well known, however, is the increasing use of LLCs for nonprofit and charitable endeavors. Accordingly, this chapter explores in four parts the emerging use of LLCs for nonprofit and charitable purposes, including the use of LLCs in hybrid for-profit/nonprofit arrangements. Part 2 provides necessary background information on the nonprofit and charitable sector. Part 3 surveys the relatively common use of LLCs as nonprofit subsidiaries or affiliates. Part 4 examines how LLCs are used to facilitate certain charitable or quasi-charitable activities, including program-related investments and social enterprise. Part 5 concludes with some very recent, innovative uses of LLCs by donors to charities.

Keywords: limited liability company, tax exempt, nonprofit, disregarded entity, joint venture, charity, charitable contributions divisions

JEL Classification: L3, K34

Suggested Citation

Brewer, Cassady V., Nonprofit and Charitable Uses of LLCs (March 18, 2015). Research Handbook on Partnerships, LLCs and Alternative Forms of Business Organizations, Robert W. Hillman & Mark J. Loewenstein, Eds., Edward Elgar Publishing (2015, Forthcoming), Available at SSRN: https://ssrn.com/abstract=2580528

Cassady V. Brewer (Contact Author)

Georgia State University - College of Law ( email )

P.O. Box 4037
Atlanta, GA 30302-4037
United States

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