{"data":{"id":"us-ut/utah-code-16-20-1102","jurisdiction":"us-ut","citation":"Utah Code § 16-20-1102","heading":"Requirements.","body":"(1) To be a low-profit limited liability company, a limited liability company shall:\n(a) contain in its name the abbreviation \"L3C\" or \"l3c\";\n(b) state in its certificate of organization that it is a low-profit limited liability company;\n(c) organize under this chapter; and\n(d) be organized for a business purpose that satisfies, and at all times operates to satisfy each of the requirements under Subsection (2).\n(2) A low-profit limited liability company:\n(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;\n(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;\n(c) subject to Subsection (3), may not have as a significant purpose the production of income or the appreciation of property; and\n(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.\n(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.","path":["Title 16 Business Entities","Chapter 16-20 Utah Revised Uniform Limited Liability Company Act","Part 16-20-11 Low-Profit Limited Liability Companies"],"source_url":"https://le.utah.gov/xcode/Title16/Chapter20/16-20-S1102.html","current_through":"2026 General Session","vintage":"","retrieved_at":"2026-10-08T05:55:33Z","sha256":"aab135bef6acf5fffb4b90c2d213d38aa844047acb86daad370d4575b05bc799","source_id":"us-ut","stale":false,"prev":"us-ut/utah-code-16-20-1101","next":"us-ut/utah-code-16-20-1103"},"notice":"GroundRules: Original legal text. Not legal advice."}