L³C's would typically involve businesses that serve socially beneficial purposes and have some economic viability -- but have difficulty attracting capital because of the high risk or low return (or both) integral to their operation. A few examples:

1) A hotel in a deteriorating business district would have some ability to generate revenue, but not enough to attract sufficient capital to begin operations.

2) Historic buildings could be preserved and converted into office and retail property, but the costs of renovation may be so steep that the projected rents can not support market-rate debt incurred to finance those renovations.

3) A factory that has employed much of a town’s work force may need to replace obsolete equipment at great cost, leading its owners to explore relocation of manufacturing operations to a lower-cost foreign jurisdiction.

4) A nonprofit hospital with unsustainable debt from significant charity care opts to reorganize as an L³C, with the primary benefit of continued care for paying and charity patients, but with the added empowerment of for profit business practices.

In all of these situations, an L³C could undertake the low-return, high-risk business activity involved in these situations, with a view to combating economic deterioration, destruction of historic property, or job loss.

We ask existing L³Cs to contact us so we may list your operation as an example here.

Disclaimer:

Any legal information provided on this website, including (without limitation) any model operating agreements, is not legal advice, but rather provided for general informational purposes.

ACD is not a law firm, and its employees or representatives are not acting as your legal counsel. An attorney-client relationship with ACD cannot be formed by reading the information on this website or by using a model legal form provided by ACD on this website.

The legal information, including (without limitation) any model operating agreements, provided on this website are not a substitute for the advice of a competent attorney. Because the law constantly changes and varies from jurisdiction to jurisdiction, and is subject to varying interpretations, you should consult a licensed attorney in your jurisdiction regarding the applicability any points of law discussed on this website to any specific situation.

While the ACD member directory, biographies of advisory board memers and working group leaders and certain advertisements on this website may include listings for legal counsel, ACD does not warrant the validity of the information, nor does it guarantee the quality of the work product. The determination of the need for legal services and the selection of an attorney are extremely important decisions and should not be based solely upon advertisements, professional affiliations or self-proclaimed expertise. ACD is not responsible for reviewing the contents of the listings thatare provided by the listees or any linked websites, and ACD is not responsible for any material or information contained in the linked websites or provided by listees. A description of practice by an attorney does not mean that any agency or board has certified such attorney as a specialist or expert in any indicated field of law practice, nor does it mean that such attorney is necessarily any more expert or competent than any other attorney. You should make your own independent investigation and evaluation of any attorney being considered.

The information provided on this website is not guaranteed to be correct, complete, or current. ACD makes no warranty, express or implied, about the accuracy or reliability of the information on this website or at any other website to which this site is linked. If you use any links to websites not maintained by ACD, you do so at your own risk. ACD is not responsible for the contents or availability of any linked websites. These links are provided only as a convenience to you.

Any information that you send us in an e-mail message might not be confidential or privileged, and ACD may use any information provided to us for any legal purpose.

ACD is not responsible for any loss, injury, claim, liability, or damage related to your use of this website or any website linked to this website, whether from errors or omissions in the content of our website or any other linked websites, from the website being down or from any other use of the website. Your use of the site is at your own risk.