HB10-1111 Summary

• Allows formation of low-profit limited liability companies (L3Cs) in Colorado organized primarily to further charitable or educational purposes as defined in IRC Section 170(c)(2)(B)

• Permits L3Cs to generate income and capital appreciation as long as income production is not a significant purpose of the company

• Requires L3Cs to register with the Secretary of State ($150 fee), file operating agreements ($25 fee), and submit annual financial reports ($25 fee) or copies of federal tax returns

• Prohibits L3Cs from including political or legislative purposes as defined in IRC Section 170(c)(2)(D)

• Takes effect 90 days after final adjournment of the General Assembly (August 11, 2010) unless subject to referendum petition requiring voter approval in November 2010