HB 1890 -- Low-Profit Limited Liability Companies

Sponsor:  Storch

This bill allows for the organization of a low-profit limited
liability company or L3C.  To organize as an L3C, a company must:

(1)  Significantly further the accomplishments of one or more
charitable or educational purposes within the meaning of Section
170(c)(2)(B) of the Internal Revenue Code of 1986;

(2)  Have been formed because of the company's relationship to
the accomplishment of the charitable or educational purposes;

(3)  Have no significant purpose of producing income or the
appreciation of property; and

(4)  Have no purpose of accomplishing one or more political or
legislative purposes within the meaning of Section 170(c)(2)(D)
of the Internal Revenue Code of 1986.

"Low-profit limited liability company," "L3C," or "l3c" must
appear in the name of the company; and if at any time the company
ceases to satisfy the requirements of a low-profit limited
liability company, the company must file a certificate of
amendment within 60 days to reflect the new status.

Missouri House of Representatives
95th General Assembly, 2nd Regular Session
Last Updated September 14, 2010 at 3:12 pm