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ACT SUMMARY 2007-2008

SUMMARY OF THE 2008 ACTS AND RESOLVES View the complete text of this act


ACT NO. 106

(H.775)

Low-profit limited liability companies

This act allows the formation of a low-profit limited liability company (L3C or 13c), which is a company that is organized for a business purpose that significantly furthers the accomplishment of one or more charitable or educational purposes within the meaning of 26 U.S.C. § 170(c)(2)(B), and would not have been formed but for the company’s relationship to the accomplishment of charitable or educational purposes. No significant purpose of the company is the production of income or the appreciation of property, and no purpose of the company is to accomplish one or more political or legislative purposes within the meaning of Section 170(c)(2)(D) of the Internal Revenue Code of 1986, 26 U.S.C. § 170(c)(2)(D). An L3C must satisfy these requirements at the time of formation and at all times during operation of the company.

Effective Date: April 30, 2008.



Published by:

The Vermont General Assembly
115 State Street
Montpelier, Vermont


www.leg.state.vt.us