Buzz Archive:
Low-Profit Limited Liability Companies - A New Approach To Achieve Social Progress

by Steven A. Ruskin, Esq. and B. Seth Bryant, Esq. at Bryant Burgher Jaffe & Roberts LLP, 2/16/2010

A low-profit limited liability company ("L3C") is a new form of business entity that is a hybrid with both "not-for-profit" and "for-profit" characteristics. While an L3C must be formed and operated primarily for charitable or educational purposes, it is a limited liability company ("LLC") that is owned by its members who may earn some profit from the social venture operated through the L3C. The entity is designed to attract "program related investments" or "PRIs" (described below) from private foundations as well as for-profit equity investments from socially conscious investors.

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