Social Enterprise

As we’ve previously explained on this blog, several states have adopted legislation accommodating legal structures for businesses that make a social impact.  For example, Maryland, New Jersey, Hawaii, Vermont, California, New York, and Virginia and have passed statutes authorizing Benefit Corporations.  And Illinois, Louisiana, Maine, Michigan, North Carolina, Rhode Island, Utah, Vermont, Wyoming have passed legislation authorizing the Low-Profit Limited Liability Company (or “L3C”).   Both the L3C and the Benefit Corporation structure are often referred to as a “hybrid entities” because these legal structures blend nonprofit and for-profit principles—the businesses are required to adhere to a social mission but......


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