Organizational Entities and Social Enterprise: Low-Profit Limited Liability Companies (L3Cs), Benefit Corporations (B Corporations or B Corps), and Flexible Purpose Corporations
(They don’t exist in Alabama at present, but some other states allow for them.)
These types of entities may have appealing features for some social enterprise ventures, and some investors (whether they are private foundations making PRIs or more traditional investors) may prefer to invest in certain types of entities over others.
Powell, Mark E., Cecily Jackson-Zapata, and Becki Kammerling. “Social Enterprise Choice of Entity: Benefit Corporation, Flexible Purpose Corporation, and the L3C.” http://maineinnovationchallenge.org/wpa/wp-content/uploads/2015/09/social-enterprise-choice-of-entity-article.pdf.
Lamb, Paul, moderator; Dan Crisafulli, Paula Goldman, David Levitt, and Maureen Sedonaen, panelists. “Doing Well & Doing Good: Hybrid Models for Social Impact” [Recording]. Foundation Center, March 2012. http://grantspace.org/tools/multimedia/video/hybrid-models-for-social-impact-2012-03-20.
Also see the “Social Enterprise” Knowledge Base entry on page 1 for links with more information about these types of businesses.