An interesting post from yesterday on npEnterprise – Vermont has passed a bill to allow incorporation as a “low-profit liability company,” or L3C. This is basically an LLC (limited liability company) that is allowed to accept PRI’s (Program Related Investments, often from foundations) traditionally limited to nonprofits.
In other words, this is a new business structure that recognizes the blended value proposition of a double bottom line that incorporates both social and financial goals. Legislation has also been introduced here in NC, and is apparently awaiting action in the House Finance Committee.
Thu May 22, 2008 9:58 am (PDT)
Vermont recently passed a lot of bill regarding L3C’s, which allows
organizations to incorporate into “low-profit liability companies.”
If you would like additional info on the concept, Heather Peeler (Managing
Director of Community Wealth Ventures) wrote an article last year that outlines
the purpose of L3C’s.
The bill was championed by a group called Americans for Community Development.
Check them out here:
Social Franchise Ventures, LLC.
Some additional information: Vermont Legislature passed
our L3C bill and the Governor of Vermont signed it, so it’s now in the books.