01.28.09
“I’m on a Loooooow Budget, What Did You Say?”
Michigan just passed legislation to authorize the formation of “low-profit limited liability companies.” I’m not clear on whether it’s the same thing as a non-profit and, if so, why they didn’t just use “non-profit LLC.” Oh well. It’ll get flushed out as time goes along. Here’s the blurb my legal update kicked out:
Michigan Limited Liability Company (LLC) Act – defines low-profit limited liability company as an LLC that has included in its articles of organization a purpose that meets, and that at all times conducts its activities to meet, all of the following requirements: (1) the LLC significantly furthers the accomplishment of one or more charitable or educational purposes described in IRC 170(c)(2)(b), and would not have been formed except to accomplish those charitable or educational purposes; (2) the production of income or appreciation of property is not a significant purpose of the LLC; (3) the purposes of the LLC do not include accomplishing one or more political or legislative purposes described in IRC 170(c)(2)(d); in the absence of other factors, the LLC’s production of significant income or capital appreciation would not be conclusive evidence of a significant purpose involving the production of income or the appreciation of property (SB 1445; eff. 1/16/09)
