Full text of Utah Utah Code § 16-20-1102 — Requirements. (Effective 10/1/2026), with citation guidance and answers to common questions.
§ 16-20-1102. Requirements. (Effective 10/1/2026)
Effective 10/1/2026
16-20-1102.
Requirements.
| (1) | To be a low-profit limited liability company, a limited liability company shall:
| (a) | contain in its name the abbreviation "L3C" or "l3c"; |
| (b) | state in its certificate of organization that it is a low-profit limited liability company; |
| (c) | organize under this chapter; and |
| (d) | be organized for a business purpose that satisfies, and at all times operates to satisfy each of the requirements under Subsection (2). |
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| (2) | A low-profit limited liability company:
| (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; |
| (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; |
| (c) | subject to Subsection (3), may not have as a significant purpose the production of income or the appreciation of property; and |
| (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. |
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| (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. |
Renumbered and Amended by Chapter
92, 2026 General Session
Frequently Asked Questions About Utah § 16-20-1102
What does Utah Code § 16-20-1102 cover?
Section 16-20-1102 ("Requirements. (Effective 10/1/2026)") is part of the Utah Code, the codified statutory law of Utah. It sets out the legal rule or procedure described in the text above. Statutes are amended regularly, so always verify against the official source.
How do I cite Utah § 16-20-1102?
A common citation format is "Utah Code § 16-20-1102" (Utah). Legal writing may require the code abbreviation, section number, and year or edition. Match the style required by your court, professor, or publisher.
Is this the official text of Utah law?
No. This page is for research and education and may not include the most recent amendments. For official current law, check the Utah official source linked on this page or consult a licensed Utah attorney.
How does Utah § 16-20-1102 apply to my situation?
Statutes are interpreted in context, and application depends on your specific facts. Only a licensed attorney in Utah can advise on how this section applies to you. Contact your state or local bar association for a referral.
