New Corporate Entity L3C

New corporate entities and Hailey’s Comet both come around about once in a lifetime. Why should you care, read on, I’ll get to that.

The L3C is a form of limited liability company (LLC) it has many characteristics of a typical LLC, it is a for-profit entity, offers a flexible ownership structure so each member’s management responsibility and financial stake may vary according to individual needs, and members enjoy limited liability. Lastly, like a LLC, the L3C is classified as a “pass-through entity” for federal tax purposes.
There is one major distinction between the L3C’s & LLC’s; both are profit-making entities, but the primary purpose of the L3C is not to earn a profit, but to achieve a socially beneficial objective, with profit a secondary goal. Sounds like the old Control Data Corporation model!!!!!

Why is it important to you? Have you ever gone to the federal government’s website recovery.com and gotten past all the jobs created or saved baloney? If so, you were redirected to a site grants.gov where all the “stimulus” money is being given away. Millions given away to study yaks mating calls or oil drilling in Brazil. Almost none is designated for small business! The vast majority is reserved for government, schools and non-profit corporations. That’s right, the job creating engine know as small business gets almost nothing. Government jobs do not create GNP, small businesses do.

OK, I promised there would be something in it for you, here it is; Start one! Start a L3C.

Haven’t you always wanted to start a company to save the planet or your fellow man? The urge is there, but where is the start up dollars and how will I get paid? Here it is. Start up a non-profit L3C and achieve non-profit 501 (c) 3 status and be able to take donations. Apply for the grants to get funded and keep writing grant papers. How do you get paid? Easy, just because it’s non-profit doesn’t mean you can’t take home a salary. I’m not advocating taking big fat 6 or 7 figure paychecks like some of the big non-profits with household names pay their CEO’s, but pay yourself fairly. Feel good that you finally followed your heart and are using your talents to help the earth and its inhabitants.

Worth checking into. Careful, now there is no excuse to not do good work!