Overview
The current state of the economy has left many charities and businesses, all with great intentions, struggling for financial support. These organizations need to re-evaluate their business models to successfully adapt in this economic climate.
This OnDemand Webinar will provide advisors and business owners with a broad overview of a new hybrid for-profit/nonprofit business model: the low-profit limited liability company or L3C. Presenters Cass Brewer and Jeff Woodward will discuss the unique attributes of these entities, especially examples of where an L3C may be appropriate.
At its most elemental level, the L3C is a cross between a nonprofit and for-profit. It is a new form of business enterprise that is specifically designed to further a charitable or educational mission and, in the right circumstances, it can qualify as a program related investment for private foundations.
Over the past two years, at least five states have enacted laws facilitating the creation of L3Cs. Because L3Cs are merely a variant of limited liability companies, and because limited liability companies are authorized to conduct business in all fifty states, L3Cs may be poised to become the business entity of choice for social enterprise and other hybrid business models throughout the United States, including those that use program related investments.
On the other hand, the L3C has its critics, and some view the advent of the L3C as a distraction, or, even worse, a dangerous creation that offers no advantage over traditional LLCs as a vehicle for program related investments.
Regardless of whether it is appropriate for a program related investment, there may be other potential uses for L3Cs,including use as a subsidiary of an exempt organization or as a or joint venture vehicle.
This OnDemand Webinar will cover the unique legal and tax characteristics of L3Cs and will discuss their potential uses (or abuses). Please join us to learn more about this evolving new area of the law.
Authors
Cassady V. Brewer, Morris, Manning & Martin, LLP
Jeff D. Woodward, Stites & Harbison, PLLC
Self Study Credit - OnDemand Webinar
| CLE | 1 | PA, UT | |
| CLE | 1.25 | NC | |
| CLE | 1.4 | MS | |
| CLE | 1.43 | TN | |
| CLE | 1.5 | AK, AL, AZ, CA, HI, IL, MT, ND, OR, VT, WA, WI, WV | |
| CLE | 1.8 | MO | |
| CLE | 2 | CO | |
Self Study Credit - CD & Reference Manual
| CLE | 1.5 | AK, AZ, CA, GA, HI, ME, MT, ND, NV, OR, UT, VT, WA | |
| CLE | 1.8 | MO, WV | |
| CLE | 2 | CO | |
Self Study Credit - Podcast
| CLE | 1.5 | AK, CA, CO, ME, MT, ND, NV, OR, UT, VT, WA | |
| CLE | 1.8 | MO, WV | |
Agenda
Introduction
Overview of PRIs
- What is a PRI?
- Requirements of PRIs
- Benefits of PRIs
- Recent Trends
- Risks of PRIs
- Specifics of PRIs
Basic Characteristics of L3Cs
- Difference Between L3Cs and LLCs
- Recent Legislation
- Specifics of the L3C Legislation
- Benefits of Using L3Cs
Examples of Potential L3Cs
- Layered Investing
- Other Possible Uses
Concluding Thoughts
