
L3C vs. LLC for startup accelerators - guyjacks1983
I&#x27;m working on a Social Enterprise aimed at creating a more engaging experience when donating to or volunteering for a charity.  I&#x27;m torn between incorporating as an L3C or an LLC.  Does anyone know if accelerators such as Tech Stars or Y Com will take on L3Cs?  I guess an extension of the question would be whether or not VC&#x27;s will invest in an L3C.  Thanks.
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manav
I would say no if you are specifically looking at VC. L3Cs are pretty uncommon
and un-allowed in a majority of states. In structure they are like LLCs and
thus cannot issue stock.

As of now they also don't get any of the tax exemption that a 501c3 non-profit
would. If you plan to go the "full" non-profit route rather than a hybrid for-
profit/non-profit, you would be best off forming a Corporation (C-corp) and
then applying for 501c3 status.

