Consider establishing a Partnership
Partnerships:
- Are simple and inexpensive to establish and maintain;
- Have advantages of sole proprietorship but permits multiple owners of enterprise
BUT:
- No limited liability for general partners; each partner is responsible for the debts and obligations of the business;
- Generally not suitable for accessing outside capital.
Case Study: Sustainable Asset Fund II, LP (SAF II)
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Sustainable Asset Fund II, LP (SAF II) is a Delaware limited partnership that invests in real assets that are sustainable; that is, they use renewable inputs or are fundamentally more efficient than conventional real assets.These can include assets such as solar and wind energy production facilities, water storage capacity and wetlands that generate mitigation credits. SAF II seeks to make investments that, in addition to producing a financial return, mitigate or reduce greenhouse gas emissions, provide green jobs, provide capital to underserved businesses and industries and protect open spaces. SAF II uses the limited partnership form to provide limited liability to its investors while maintaining favorable tax characteristics. SAF II is managed by Vision Ridge Partners, LLC.
For more information, please visit http://www.vision-ridge.com.
Next steps
Now that you have an overview of what structures may be most suitable for your social venture, you should seek legal advice to ensure the structure meets all your organization’s needs.
TrustLaw, the Thomson Reuters Foundation global pro bono legal program, connects social enterprises with leading law firms to provide free legal assistance on issues such as a structuring. In the US alone, TrustLaw supports over 175 social enterprises with free legal assistance.
Apply to join TrustLaw to request free legal advice for your social venture.