AR SB5

Establishes definition of "low-profit limited liability company" as an organization formed under Arkansas law that significantly furthers religious, charitable, scientific, literary, or educational purposes under Internal Revenue Code § 170(c)(2)(B)

Requires low-profit LLCs to not have been formed primarily for income production or property appreciation, though generating significant income does not automatically disqualify the entity absent other factors

Prohibits low-profit LLCs from accomplishing political or legislative purposes as defined in Internal Revenue Code § 170(c)(2)(D)

Requires low-profit LLCs to use the abbreviation "L3C," "L.3.C.," or "l3c" in their name instead of standard LLC designations

Mandates that a low-profit LLC ceases to qualify and must change its name within 60 days if it fails to meet any requirements, or the company dissolves automatically after that 60-day period