Glossary Term

Low-profit Limited Liability Company / L3C

A low-profit limited liability company, a hybrid form of incorporation, available in a growing number of states, in which a for-profit venture has a stated goal of maximizing social benefits instead of profits. Designed specifically to allow and attract multiple sources of capital for the socially-oriented business, including program-related investments from foundations. Similar in concept to the new B Corps / Benefit Corporations form of incorporation but a legally distinct form. Often categorized as a social business or social enterprise.

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