Low Profit Limited Liability Company Legislation Profiled in the Chicago Tribune

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New corporate structure could give social entrepreneurs new funding stream


By Ann Meyer
August 10, 2009

After nearly four decades of running a staffing agency on a shoestring budget, John Plunkett hopes the next business he starts will be a moneymaker thanks to a new law that recognizes for-profit businesses with a strong social bent.

The law, signed by Gov. Pat Quinn last week, allows the incorporation of low-profit, limited-liability companies, or L3Cs, a new hybrid structure for for-profit ventures that have a primary goal of achieving a socially beneficial purpose...

The law, which takes effect Jan. 1, aims to make it easier for social enterprises to attract capital, said Sen. Heather Steans (D-Chicago), who sponsored the bill.

“Foundations have a growing interest to not only make grants that achieve a social purpose but also use investments to do that,” Steans said.

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