2/16/11: The L3C: A Business Enterprise with a Social Conscience
This event will take place in the Trustees Room 2-4 p.m.
The Low-Profit LLC (L3C) is a relatively new statutory form of business that has been proposed in a number of states (and adopted in some). It is one of a number of ways to provide a hybrid model for for-profit businesses to engage in socially responsible activity. The L3C model is specifically designed to attract investments from private foundations which are subject to strict investment rules under federal tax law.
The advancement of the L3C model has generated significant controversy at a number of levels. At a broad level, there is controversy as to whether such hybrid organizations are necessary given the general breadth of the nonprofit sector. More specifically, there is controversy both as to whether the L3C model is necessary given the flexibility of LLCs in general, and whether it will have the desired effect within the Internal Revenue Service.
Professor Carter Bishop of Suffolk University Law School, a nationally-recognized expert in taxation of limited liability companies and partnerships, will lead the panel discussion with an overview of the development of the L3C model and the rapidly developing legal field of socially responsible business enterprises. Center for Business Law faculty will then provide comments on Professor Bishop’s discussion. The session will then turn to an open discussion with the audience to explore current issues posed by the emergence of the L3C and the future impact such a hybrid organization may have on the business community and legal field.
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