A socially purposed limited liability company...
What is an L3C?
​A low-profit limited liability company, also known as an L3C, is a new kind of limited liability company (LLC) that combines the financial advantages of the traditional LLC form of business with the social benefits of a non-profit entity. In addition, as a variety of LLC, the L3C generally shields its owners from the debts of the enterprise. An L3C is a for-profit limited liability company which is specifically organized to further one or more charitable or educational purposes within the meaning of the Internal Revenue Code (IRC).1 L3Cs may be formed as free-standing businesses with social purposes. They may also be created by nonprofit organizations as for-profit subsidiaries with social welfare goals.
An L3C can earn income and see its property appreciate in value, but the production of income or the appreciation of property cannot be a significant purpose of the company. In addition, L3Cs are prohibited from pursuing political or legislative purposes within the meaning of the IRC.
[Excerpted from a Basic L3C Primer]
Have you read our two L3C white papers yet?
We are interSector Partners, L3C, the first low-profit limited liability company doing business in Colorado and h=now headquartered in Holland, MI. We—partners Caryn Capriccioso and Rick Zwetsch—organized our business in Vermont in early 2009 and are proud to be advocates of the L3C...
Looking for L3C Resources...
interSector Partners, L3C has worked diligently to ensure that all information in our white papers is accurate as of the time of publication and consistent with standards of good practice in the communities within which we work...
Have Questions about L3C?
Best way to reach us is to use the short form below. Rick will get back to you as soon as he can...always within a couple of days.
You're welcome to call as well. However, due to ongoing client work, it may take up to a week to receive a return phone call!