SB 55

Abstract

Amends the Limited Liability Company Act. Allows for the creation of a low-profit limited liability company or L3C. Defines "L3C" or "low-profit limited liability company" to mean a company organized for a business purpose that satisfies and is at all times operated to satisfy each of the following requirements: (1) it significantly furthers the accomplishment of one or more educational purposes within the meaning of the Internal Revenue Code of 1986 and would not have been formed but for the company's relationship to the accomplishment of charitable or educational purposes; (2) no significant purpose of the company is the production of income or the appreciation of property; and the purpose of the company is not to accomplish one or more political or legislative purposes. Also provides that a company that met the definition of a low-profit limited liability company at its formation will cease to exist as a low-profit limited liability company once it fails to satisfy any one of the Act's requirements, but will instead continue as a limited liability company. Makes other changes. Effective immediately.