L3C, short for Low Profit Limited Liability Company is a relatively new business entity allowed in Michigan designed as a hybrid between traditional For-profit limited liability entities and  non-profit corporations. As with a non-profit, an L3C must be formed in furtherance of some charitable or educational purpose. However, as with a for-profit entity, an L3C may have equity owners who have the right to receive distributions of profits and appreciation in the value of the business entity.  Though L3Cs cannot qualify as a tax-exempt organization under 501(c)(3) of the Internal Revenue Code (except under very narrow circumstances) they can be eligible for private foundation grants and similar investment sources not typical available to for-profit entities.