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AL SB517
Bill
Status
5/25/2011
Primary Sponsor
Bobby Singleton
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AI Summary
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Authorizes formation of low-profit limited liability companies (L3Cs) in Alabama with specific naming requirements using "Low-profit Limited Liability Company" or abbreviations "L3C," "l.3.C.," or "l3c."
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Defines low-profit limited liability companies as entities that significantly further charitable purposes under 26 U.S.C. Section 170(c)(2)(B) and would not have been formed without that charitable purpose.
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Prohibits low-profit limited liability companies from having income production or property appreciation as a significant purpose of any membership interest, and prohibits political or legislative purposes.
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Establishes administrative dissolution procedures allowing the Secretary of State to dissolve a low-profit limited liability company if it fails to meet the required charitable purpose requirements for 60 days and does not amend its articles of organization to conform to naming requirements.
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Becomes effective on the first day of the third month following passage and Governor approval.
Legislative Description
Limited liability companies, formation of low-profit limited liability companies, definitions, names of companies, dissolution provisions, Secs. 10A-1-5.06, 10A-2-14.20, 10A-5-1.02 am'd.
Limited Liability Companies
Last Action
Read for the first time and referred to the Senate committee on Judiciary
5/25/2011