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TAX EIN Confirmation for L3C
Date of this notice: 11-10-2009
Employer Identification Number:
27-1284971
Form: SS-4
Number of this notice: CP 575 G

http://www.cdec1031.com/Private%20Letter%20Rulings%20(PLRs).htm

http://www.nonprofitlawblog.com/home/2009/05/private-letter-rulings-and-the-l3c.html

There are no basic differences in our part of the law with the exception of Illinois and the annoying charity clause. The actual total result can vary from state to state because of the state's LLC law. They are not the same from state to state. Illinois and Utah, for example permit series LLC's which means you can create a series L3C. But even from say Vermont to Michigan to Wyoming there are lots of subtle and not so subtle differences. It is not just a matter of some sort of simple comparison chart. This is why Marc, Allen and others keep saying you need legal counsel. It just is not a do it yourself proposition if there are any complexities to what you intend to to. If you live in Vermont, are going to form a one man L3C, not ask for foundation dollars and stay small you probably can go on the SOS's website and form your own but for all else get help. Remember as a hybrid you do have a foot in the nonprofit space and that alone makes it unsafe to tread without legal counsel.

Unfortunately the NYS Legislature adjourned without having time for the Assembly to pass the bill. We are hoping they will come back later in the year and finish the job. Credit goes not just to Stachwoski and Parker but to Assemblyman Al Stirpe and Richard Brodsky who are sponsoring it in the Assembly. If you live in NY please write to both of them and ask for passage. While we are handing out Oscars however we cannot forget two great staffers, Neil Wakeman in Assemblyman Stirpe's office and Lilly Kelly in Senator Stachowski's office who have really worked hard in a very difficult legislative session. We also need to compliment the vision of Brian McMahon, Executive Director of the New York State Economic Development Council who got the ball rolling after he came to understand that the L3C is truly a significant tool in the toolbox for economic development. In fact the NYS Legislature is looking at the L3C as a jobs bill.

Marc Lane • Pete,

The IRS provides "real world" examples of PRIs through its Revenue Rulings and Private Letter Rulings (PLRs).

Below are a very few of many actual examples that provide insight as to how the IRS approaches the PRI analysis. In each case the IRS found a valid PRI.

* Revenue Ruling 78-90 (below market loan to assist blind persons secure employment)

* PLR 200136026 (investment in economic development)

* PLR 8710076 (investment in limited partnership that provides capital to other businesses)

* PLR 8141025 (low-income housing loan)

* PLR 8030079 (urban renewal loan)

* PLR 8301110 (construction loan in a blighted area)

* PLR 199943058 (below market-rate loan in foreign business)

* PLR 200043050 (deposit and loan guaranty)

* PLR 9033063 (participation interest in a letter of credit to secure favorable bond rating)

* PLR 8810026 (below market-rate loan to an insurance trust)

I hope you find this information helpful. Please let me know if I can be of any further assistance.

Marc

The Paradigm Project a L3C in action.

The Paradigm Project

Maryland and the L3C legislation

Can the L3C be taken Pulic?

Further discussion from the L3C group on LinkedIn