Renumbered 10/1/2026

247 words·~1 min read·/ut/title-48/chapter-3a/10-69

A research copy — for the controlling text, always check the official state or federal source. Not legal advice.

48-3a-1302. Requirements.

(1)To be a low-profit limited liability company, a limited liability company shall:

(a)contain in its name the abbreviation "L3C" or "l3c";

(b)state in its certificate of organization that it is a low-profit limited liability company;

(c)organize under this chapter; and

(d)be organized for a business purpose that satisfies, and at all times operates to satisfy each of the requirements under Subsection

(2).

(2)A low-profit limited liability company:

(a)shall significantly further the accomplishment of one or more charitable or educational purposes within the meaning of Section 170(c)(2)(B), Internal Revenue Code;

(b)shall demonstrate that it would not be formed but for the limited liability company's relationship to the accomplishment of a charitable or educational purpose;

(c)subject to Subsection

(3), may not have as a significant purpose the production of income or the appreciation of property; and

(d)may not have as a purpose to accomplish one or more political or legislative purposes within the meaning of Section 170(c)(2)(D), Internal Revenue Code.

(3)Notwithstanding Subsection

(2), if a low-profit limited liability company produces significant income or capital appreciation, in the absence of other factors, the fact that the low-profit limited liability company produces significant income or capital appreciation is not conclusive evidence of a significant purpose involving the production of income or the appreciation of property.

Renumbered and Amended by Chapter 92 , 2026 General Session

Enacted by Chapter 412 , 2013 General Session