L3C (Low-Profit Limited Liability Company)

Overview

A state-recognized hybrid entity that pursues a charitable or social mission while allowing modest profit. The L3C is specifically designed to attract program-related investments (PRIs) from private foundations, bridging the gap between nonprofit purpose and for-profit capital for social enterprises.

Best For

Social enterprises bridging nonprofit and for-profit goals
Ventures seeking foundation PRI funding
Mission-driven businesses wanting an explicit charitable-purpose structure

📊 Key Tax & Giving Advantage

Purpose-built to receive program-related investments from foundations while operating like a business.

Considerations

Only recognized in certain states
Not tax-exempt; profits are taxable
Foundations must still confirm the investment qualifies as a PRI

Interested in L3C (Low-Profit Limited Liability Company)?

Every philanthropic structure should be tailored to your assets, goals, and state law. Request a private consultation and we'll help you choose and establish the right vehicle.

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