Introducing the Low-Profit Limited Liability Company (L3C) in Montana

The Low-Profit Limited Liability Company (L3C) is a great new tool for businesses which can help grow
Montana’s economy and also provide opportunities for the social betterment of Montana’s citizens.

There are many businesses and non-profits in our state whose primary mission is to serve a socially beneficial
purpose (such as a food bank). Many such businesses and non-profits that serve the social good in our state
struggle to stay financially solvent and successful from year to year. The L3C simply provides a new way for
these businesses to organize themselves as a company. By becoming an L3C, these businesses will be better
positioned to receive investments from non-profit foundations. This, in turn, will make these organizations
more attractive to for-profit investors. Thus, a socially-beneficial business that is organized as an L3C will have a
much better chance of staying financially secure and successful.

Full Report: http://ruraldynamics.org/pdf/L3C.pdf

(Many tanks to Gayle Gifford of the Montana Food Bank Network http://www.mfbn.org for speaking to the U of M Entrepreneurs Club and bringing this insight to their attention.)