By NEO Law Group
It has been a little over three years since Vermont became the first state in the country to recognize the low-profit limited liability company (L3C) as an official legal structure on April 30, 2008. Since then, other legal forms such as the Benefit Corporation and the Flexible Purpose Corporation (proposed in California) have started to […]
Emily and I will be presenting "Understanding the L3C" for the Bar Association of San Francisco's Business Law Section this Thursday from noon to 1:15 pm. Attendance is open to anyone who is interested (not just lawyers). You can register online here or just show up at the door (301 Battery Street, 3rd Floor, San […]
Here is a question I posed to some colleagues recently regarding the low-profit limited liability company (L3C) and charitable trust laws: Is it clear whether or not an L3C that receives a PRI is holding property for charitable purposes subject to charitable trust restrictions and Attorney General jurisdiction? While the L3C is not subject to […]
2009 is an interesting year for the low-profit limited liability (L3C) concept because it presents the first test of an L3C’s ability to operate under current federal law and IRS regulations. One concern raised is the process by which private foundations will make program-related investments (PRIs) to this new legal entity. A PRI is an […]
The L3C (low-profit limited liability company), which was first enacted by Vermont (April 30, 2008), has acquired much attention and momentum in the last year. In the first months of 2009 alone, Michigan (Jan. 15, 2009), Wyoming (Feb. 4, 2009), and the Crow Indian Nation in Montana (Jan. 13, 2009) formally adopted the L3C legislation. According […]
The low-profit, limited liability company, or L3C, is sometimes referred to as a type of hybrid of a nonprofit and for-profit organization. More specifically, it is a new type of limited liability company (LLC) designed to attract private investments and philanthropic capital in ventures designed to provide a social benefit. Unlike a standard LLC, the […]
At the Council on Foundation Conference, former director of the Exempt Organizations division of the IRS Marcus Owens discussed the concept of a new form of legal entity that might be an appropriate vehicle (1) for social enterprises, and (2) to receive program-related investments – the low-profit limited liability company or L3C. The L3C would […]
This is the third and last post we’ll publish on Georgetown Law’s 39th Annual Representing and Managing Tax-Exempt Organizations Conference featuring highlights from a number of sessions (mixed in some cases with my own thoughts). You can find our earlier posts here (IRS, Treasury, Capitol Hill) and here (Current Developments). State AG Offices: Updates & The […]
Many well-intended individuals who want to work on addressing public, social, and environmental needs think about starting a charitable nonprofit. Founding and leading a nonprofit may be viewed as a badge of significance and honor. But before moving forward, founders of a charitable venture should first consider the alternatives. Similarly, lawyers and bar associations asked […]
The National Network of Fiscal Sponsors held its Annual Gathering in Brooklyn on November 7. Approximately 100 leaders of fiscal sponsors from across the country came to learn about common issues, best practices, and new developments, and to share experiences. Fiscal sponsorship refers to a contractual relationship that allows a person, group, or taxable entity to […]
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