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]
Who is the L3C Entrepreneur? - Published May 2010
Who is the L3C Entrepreneur? - UPDATE Published Fall 2012
Latest L3C Tally
L3C in the News!
L3C Laws (Note this link takes you away from our site and opens a new window)
Our L3C Friends
Talk with interSector Partners about the L3C!
Fifty State Series - L3C and BCorp Legislation Table
Show your support for the L3C!
Send email with your name, company name, mailing address along with WHY you're interested in and support the L3C
to rickz at interSectorL3C dot com
and we'll send you an L3C sticker
like this one!
(Size: 3 3/4” x 5 3/4”)
Then send us a picture and we'll add you to: