Bill No.: HB0182                  Drafter:  LGC

LSO No.:  09LSO-0471              Effective Date:  7/1/2009

Enrolled Act No.:  HEA0034

Chapter No.:       55

Prime Sponsor:     Representative Zwonitzer, Dn.

Catch Title:       Low profit limited liability companies.

Subject:       Creates a new business entity.

Summary/Major Elements:

• The act creates a new form of limited liability company called a low profit limited liability company.  The act defines a low profit limited liability company as a limited liability company that has set forth in its articles of organization a business purpose approved as a charitable or educational purpose under the internal revenue code.

• The act sets forth the abbreviations which must be included in a low profit limited liability company's name.

• The act provides for administrative forfeiture of a low profit limited liability company's certificate of authority if it ceases to meet the statutory definition of a low profit limited liability company.