SB2358 Summary

• Creates the Benefit Limited Liability Company Act, establishing a new business entity type in Illinois that combines profit-making with legally mandated public benefit purposes.

• Allows limited liability companies to elect benefit status by amending articles of organization with at least a two-thirds vote of equity holders; status can also be adopted at formation or terminated through similar voting requirements.

• Requires benefit LLCs to pursue "general public benefit" (material positive impact on society and environment assessed against third-party standards) and may identify specific public benefits such as serving low-income communities, promoting economic opportunity, preserving the environment, or advancing human health and knowledge.

• Members and managers must consider impacts on employees, suppliers, customers, communities, the environment, long-term company interests, and the company's public benefit purposes when making decisions, with liability protection as long as they comply with the Act and Limited Liability Company Act.

• Mandates annual benefit reports to members and public disclosure (via website or upon request) detailing pursuit of public benefits, third-party standard assessments, manager compensation, major shareholders, and any conflicts of interest with standard-setting organizations.