L3C
Business & Finance abbreviation · Company Type
| Stands for | Low-profit limited liability company |
|---|---|
| Categories | Business & Finance |
L3C stands for Low-profit limited liability company, a company type abbreviation.
Variant of the LLC available in a small number of US states, designed for businesses whose primary purpose is charitable or educational, with profit-making a secondary goal. It was created to make it easier for private foundations to invest through program-related investments.
Example: The rural broadband project was organized as an L3C so foundations could invest alongside private lenders.
Usage notes
Vermont enacted the first L3C statute in 2008, and only a handful of states followed; North Carolina later repealed its law. Critics note that L3C status does not guarantee that the IRS will treat a foundation's investment as program-related, so foundations still seek legal opinions.
Related abbreviations
More company type abbreviations
- Inc. – Incorporated
- JSC – Joint-stock company
- Kft. – Korlátolt felelősségű társaság (limited liability company)
- KG – Kommanditgesellschaft (limited partnership)
- KGaA – Kommanditgesellschaft auf Aktien (partnership limited by shares)
- KK – Kabushiki kaisha (stock company)
- LLC – Limited liability company
- LLLP – Limited liability limited partnership
- LLP – Limited liability partnership
- LP – Limited partnership
- Ltd. – Limited
- Ltda – Limitada (limited company)