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2010•SSRN Electronic JournalOpen access

The L3C Illusion: Why Low-Profit Limited Liability Companies Will Not Stimulate Socially Optimal Private Foundation Investment in Entrepreneurial Ventures

J. William Callison, Allan W. Vestal

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Abstract

This paper considers low-profit limited liability companies (L3Cs). It determines that the L3C status provides no advantages regarding two of the stated reasons for the concept, namely enabling foundations to make program related investments and providing clearer fiduciary duty/governance rules, and concludes that the L3C form has little or no value and should be abandoned.

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What this paper is about

This paper considers low-profit limited liability companies (L3Cs). It determines that the L3C status provides no advantages regarding two of the stated reasons for the concept, namely enabling foundations to make program related investments and providing clearer fiduciary duty/governance rules, and concludes that the L3C form has little or no value and should be abandoned.

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OpenAlex reports 20 citations for this work. Citation counts describe recorded attention and do not establish research quality.

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Available abstract

This paper considers low-profit limited liability companies (L3Cs). It determines that the L3C status provides no advantages regarding two of the stated reasons for the concept, namely enabling foundations to make program related investments and providing clearer fiduciary duty/governance rules, and concludes that the L3C form has little or no value and should be abandoned.

Key concepts: Limited liability, Fiduciary, Business, Limited partnership, Limited liability partnership, Corporate governance, Liability, Duty

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The L3C Illusion: Why Low-Profit Limited Liability Companies Will Not Stimulate Socially Optimal Private Foundation Investment in Entrepreneurial Ventures — Research Paper | ScholarLens