Low-Profit Limited Liability Companies (L3C):

• Have the advantages generally associated with limited liability companies;
• Highlight and brand an organization as having a social or charitable purpose other than the maximization
  of profits;
• May provide access to third parties, consumers, strategic partners, investors and others whose interests are
  aligned with the organization’s social or charitable purposes

BUT:

• The same disadvantages associated with LLCs also apply to L3Cs;
• It may be easy to intentionally or unintentionally enter into and leave L3C status depending on the state of
  formation;
• This is a relatively new variation of LLC and the impact on capital raising is not clear yet; 
• The original intent of providing easier access to program-related investments by foundations has not
  materialized;
• And there is no special federal tax treatment advantages over traditional LLCs.

Download guidance about setting up a Low-Profit Limited Liability Company