Bill > S184

This bill aims to create a new type of business entity called a "low-profit limited liability company" (L3C) in Massachusetts. The key provisions of the bill are: 1. It defines an L3C as a limited liability company that significantly furthers charitable or educational purposes, does not have a significant purpose of producing income or appreciating property, and does not have a purpose of accomplishing political or legislative goals. 2. It requires an L3C to include the words "Low-profit Limited Liability Company" or the abbreviation "L3C/l3c" in its name. 3. It outlines requirements for an L3C to file a certificate of amendment with the state if it ceases to meet the criteria to be considered an L3C, in order to change its name. 4. It establishes penalties for an L3C that fails to file the required amendment within 60 days of no longer meeting the L3C criteria. The overall purpose of this bill is to create a new business structure that allows for-profit companies to prioritize social and charitable goals over maximizing profits, while still maintaining the liability protections of a limited liability company.

Business and Industry

https://malegislature.gov/Bills/190/S184