Good News
After carefully researching my options of business structures. I have decided on low profit Limited Liability Corporation which is L3C.
I have look at all of the pro's and con's of the legal structure of operating my business under the Louisiana business laws.
The Pro's
· The L3C is a defined entity organized under state laws.
· It would allow the use of the more efficient free enterprise system unburdened by nonprofit regulation.
· Its financial structure would allow the creation of a salable product by the financial industry.
· Foundations may buy ownership shares, make loans to, or otherwise financially interact with the L3C, and if these investments qualify as Program Related Investments, all or part of those investments will count towards the foundation's minimum payout requirement.[3] However, income from the investment must be added to the foundation's minimum payout requirement for the year in which it is received.
· The L3C embodies the operating efficiencies of a for-profit along with a reduced regulatory structure. As an LLC, it can bring together foundations, trusts, endowment funds, pension funds, individuals, corporations, other for-profits and government entities into an organization designed to achieve social objectives while also operating according to for-profit metrics.
The Con's
Yes, there is a down side to establishing your business as L3C which is Internal Revenue Service. You definitely have to know what you doing with filing your papers and PRI too. Therefore you must hire an attorney that is specialized in Business and L3C and great Accountant.
So if you thinking about starting a business relating to needy cause you might want to consider L3C as your legal structure of entity.
