Utah Code 48-3a-1302. Requirements
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(1) To be a low-profit limited liability company, a limited liability company shall:
Terms Used In Utah Code 48-3a-1302
- Certificate of organization: means the certificate required by Section 48-3a-201. See Utah Code 48-3a-102
- Evidence: Information presented in testimony or in documents that is used to persuade the fact finder (judge or jury) to decide the case for one side or the other.
- Low-profit limited liability company: means a limited liability company meeting the requirements of Part 13, Low-Profit Limited Liability Companies. See Utah Code 48-3a-102
- Property: means all property, whether real, personal, or mixed or tangible or intangible, or any right or interest therein. See Utah Code 48-3a-102
- State: means a state of the United States, the District of Columbia, Puerto Rico, the United States Virgin Islands, or any territory or insular possession subject to the jurisdiction of the United States. See Utah Code 48-3a-102
(1)(a) contain in its name the abbreviation “L3C” or “l3c”;
(1)(b) state in its certificate of organization that it is a low-profit limited liability company;
(1)(c) organize under this chapter; and
(1)(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:
(2)(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;
(2)(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;
(2)(c) subject to Subsection (3), may not have as a significant purpose the production of income or the appreciation of property; and
(2)(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.