Vermont has recently announced a new type of LLC, a "Low-Profit Limited Liability Company". This "L3C" (as they have named it) is intended to be a cross between a nonprofit organization and a for-profit corporation that intends to have charitable or educational goals.
They are the first state to offer this format but other states are sure to follow. You may want to check with your state to see if it's on the radar. Vermont advises that organizations seeking 501(c)(3) status (that's the IRS federal designation obtained after successfully filing form 1023 with them), should still organize as a non-profit corporation.
As a note, if you have a non-profit in your future, get IRS publication 557 "Tax-Exempt Status for Your Organization" to see the requirements ahead of you.
You can go to the Vermont link http://www.sec.state.vt.us/corps/dobiz/llc/llc_l3c.htm for more information on the L3C.
See you at the next post.
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