Question for the Money Doctors
Question submitted on Jul 31, 2013.
QuestionI am interested in establishing an Environmental Watershed Management Company that educates, trains, consults as well as performs waste management functions. What is l3c and how can I set up such an organization? I want to be able to obtain Fed,state,local private/public grants in Baltimore, Md.
An L3C is a low-profit limited liability company which exists in some states to bridge traditional business entities like Limited Liability Companies (LLCs) and non-profit entities. Some states also define such hybrid entities as Benefit Corporations. These entities are relatively new and involve legal organizational requirements and ongoing maintenance. So, you would need a business attorney to determine the requirements for Maryland and form the entity. A choice of entity is a business decision that includes business plan, tax and legal considerations. So, from a business point of view, you need to determine if it is the best choice for the activity and expected grants. From a personal financial planning point of view, the business plan needs to fit your personal plan, both short-term (e.g. organizational, start-up costs) and long-term (e.g. future income).
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