Any entrepreneur starting a new venture will inevitably have to address issues of entity formation as well as fundamental tax and legal planning. Prior to existence of the Low-Profit Limited Liability Company, commonly referred to as the “L3C,” entrepreneurs with social objectives seeking to formalize their businesses legally were limited in choice between either nonprofit or for-profit private company structures. While each of these organizational structures has their own benefits and drawbacks, social entrepreneurs are often left without a business form designed for their unique business models. In order to address this dilemma, the L3C is designed to combine benefits of both the non-profit and for-profit business structure into one single entity.
Cardozo Law Review de·novo
Hopkins, Jamie, "Low-Profit Limited Liability Companies: High-Risk Tax Fad or Legitimate Social Investment Planning Opportunity?" (2014). Cardozo Law Review de•novo. 14.