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SB 326 - This act permits the creation of low-profit limited liability companies, or L3C's. An L3C is a limited liability company that does not have as its primary purpose the production of income or the appreciation of property. In order to be considered an L3C, the company must further the accomplishment of one or more charitable or educational purposes within the meaning of the Internal Revenue Code. Furthermore, the company must not have been formed but for the furtherance of such purposes. Limited liability companies seeking to establish as an L3C are required to include the word "L3C" in its name as set forth in its articles of organization. Moreover, the company is required to state in the articles that no significant purpose of the company is the production of income or the appreciation of property and that it is not the purpose to accomplish one or more political or legislative purposes. SCOTT SVAGERA
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