Bill > S111

This bill establishes a new type of business entity called a "low-profit limited liability company" or "L3C," which is a limited liability company (LLC) designed to pursue charitable or educational goals while also generating some income. To qualify as an L3C, the company's primary purpose must be to significantly further charitable or educational objectives, and it wouldn't have been formed without this purpose. Crucially, its main goal cannot be to make a profit or increase property value, although it can still generate income or appreciation as a secondary outcome. The bill also mandates that L3Cs must include "Low-profit Limited Liability Company," "L3C," or "l3c" in their names, and if an L3C stops meeting these requirements, it must amend its articles of organization within 30 days to change its name to comply with standard LLC naming rules, with failure to do so potentially leading to penalties.