The New L3C: Low-Profit Limited Liability Company.

The new “low-profit limited liability company” (L3C) is a cross between a nonprofit, charitable organization and a for-profit limited liability company. Unlike a regular limited liability company, an L3C’s primary purpose is to provide an important social benefit rather than to generate an economic profit. Unlike a nonprofit organization, however, an L3C is free to distribute profits, after taxes, to owners or investors of the company. The L3C is expected to revitalize certain businesses by attracting more investments from foundations and other philanthropic ventures.