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A low-profit limited liability company (L3C) is a legal form of business entity in the United States.[1] Commonly referred to as a hybrid structure, it has characteristics of both for-profit and non-profit entities.[1] L3Cs were created to comply with the Internal Revenue Service (IRS) program-related investments (PRIs) rules which allow most typically private foundations the ability to maintain tax-exempt status through investments in qualifying businesses and/or charities.[2] With a social mission as the primary objective and a secondary objective of profit generation, the L3C legal form is considered a viable option for businesses seeking a reputation or marketability for being a social enterprise.[3]
- ^ a b "What Exactly is a L3C?". BC LAW LAB. 21 March 2017. Retrieved 2021-11-19.
- ^ Cite error: The named reference
:22was invoked but never defined (see the help page). - ^ "Social Enterprise: Chicago Task Force Report" (PDF). 2013-11-02. Archived (PDF) from the original on 2013-11-02. Retrieved 2021-11-19.