NY S06726

Establishes low-profit limited liability company (L3C) classification for LLCs that significantly further charitable or educational purposes under Internal Revenue Code Section 170(c)(2)(b) and would not have been formed without such charitable purpose.

Prohibits L3Cs from having income production or property appreciation as a significant purpose, though generating significant income does not alone prove this is a primary purpose.

Prohibits L3Cs from accomplishing any political or legislative purposes as defined under Internal Revenue Code Section 170(c)(2)(d).

Requires L3Cs to include "LOW-PROFIT LIMITED LIABILITY COMPANY" or abbreviations "L3C" or "l3c" in their name, and mandates state department of social services and attorney general approval for use of restricted terms like "blind," "handicapped," and "exchange."

Establishes grounds for dissolution if an L3C fails to meet the charitable purpose requirements for 90 days without amending its name to comply with standard LLC naming requirements.