BENEFIT LLCS

By , August 28, 2017 11:36 am

An important new movement in corporation law has involved “benefit corporations,” which, by statute, may balance shareholder needs with the public good without breaching management fiduciary duties to shareholders.  The movement is also taking hold in the LLC world.   Below are the citation and first paragraph of a new law journal article about benefit LLCs:

University of Cincinnati Law Review
June, 2017
Twenty-Ninth Annual Corporate Law Center Symposium: Corporate Social Responsibility and the Modern Enterprise
Article
Haskell Murray
Copyright © 2017 by the University of Cincinnati; J. Haskell Murray
BENEFICIAL BENEFIT LLCS?
INTRODUCTION

Over the past decade, states have passed a plethora of social enterprise statutes, allowing for the creation of for-profit businesses with express and mandatory social purposes. These social enterprise forms include low-profit limited liability companies (L3Cs), benefit corporations, public benefit corporations, social purpose corporations, and benefit LLCs. Among these forms, the benefit LLC may have received the least attention in the legal academic literature, with research uncovering no full academic articles focused on the entity form. While benefit LLC laws have only been passed in two states– Maryland and Oregon–the form has experienced the highest per state formations of any of the social enterprise forms.1 The benefit LLC form has been relatively popular compared to other social enterprise forms, but that relative popularity does not mean that the legal entity form is wise.

Leave a Comment