A New Vehicle for Mission-Driven Work: Is the Low-Profit Limited Liability Company Right for Oregon?
Flaherty, Maura K.
Part I provides an introduction to the L3C through a discussion of the form’s potential and “promises” in three contexts: tax and private foundation investment, other private investment, and the broader promise of a new approach to mission-driven work. Part II examines the shortfalls of the L3C in these three contexts. In particular, Part II demonstrates that the current approach to the L3C form lacks tools to hold L3Cs accountable to the priority of charitable purpose. Part III explores a few ideas toward a more comprehensive approach to oversight, including a mandatory information return and specific authority in an oversight figure or body. Ultimately, the viability of the L3C depends on the ability of scholars, practitioners, and legislators to see the form as a work in progress. Thorough analysis and bold creativity can contribute to the L3C’s impact as a form of business and as a vehicle for impactful, inspiring work.