Thursday, October 13, 2011

NYT: "A Quest for Hybrid Companies That Profit, but Can Tap Charity"

The NY Times reports on the current state of "hybrid" legal forms that combine investor ownership with pursing the public good.  Such entities include the recently adopted flexible-purpose corporation in California, the low-profit limited liability company or L3C, and the British community interest company or CIC.  The article also describes various active entities that have chosen these new forms, including MOO Milk of Vermont (a L3C) and Frontline SMS (a CIC that facilitates text messaging by NGOs).

LHM

http://lawprofessors.typepad.com/nonprofit/2011/10/nyt-a-quest-for-hybrid-companies-that-profit-but-can-tap-charity.html

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Comments

How does the L3C compare to the "Benefit Corporation"? I'm assuming the L3C operates more like a charity (hence the "low profit") and a Benefit Corporation is a regular corporation that simply operates for the public good, yet pays normal corporate taxes.

Posted by: Baltimore Slumlord Watch | Oct 13, 2011 11:43:24 AM

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