Entrepreneurs have created innovations throughout the years that have not only made life easier and more efficient, but that have genuinely increased the quality of life for people all around the globe. This commitment to social responsibility has gone a long way to solve some of the world’s most difficult problems. Fortunately, social entrepreneurs can now look forward to legal structures that will help advance their missions as much as they will their profits. An article from The Wall Street Journal provides an overview:

L3C Ideal for: companies that want to blend traditional capital with "philanthropic" capital, such as from foundations Available to start-ups in: Vermont, Michigan, Wyoming, Utah, Illinois, North Carolina, Louisiana, Maine and soon in Rhode Island. The Low Profit Limited Liability Company is a new class of LLC for mission-driven companies. An L3C offers the same liability protection and pass-through taxation as an LLC. But it must be organized primarily for a charitable purpose – and secondarily for profit. Unlike a traditional nonprofit, it may distribute its profits to owners. The L3C is designed to attract both traditional investment and a very specific type of philanthropic money called Program Related Investments (PRI). PRI is capital – in the form of equity or debt – from a foundation to a for-profit company that is doing work in line with the charitable purpose of the foundation.

Continue reading about the other legal structures in place here.