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L3CS: AN INNOVATIVE CHOICE FOR URBAN ENTREPRENEURS AND URBAN REVITALIZATION BY DANA THOMPSON* Introduction ............................................................................................... 116 I. Minority-Owned Small Businesses in Urban Areas ....................... 121 II. For-Profit and Nonprofit Forms Available to Ann and Carl ........... 126 A. For-Profit Entities .................................................................... 127 1. Corporation ........................................................................ 127 a. Advantages of the Corporation ................................... 129 b. Disadvantages of the Corporation ............................... 129 c. Constituency Statutes and Corporate Social Responsibility .............................................................. 130 2. Limited Liability Company ............................................... 133 a. Advantages of the LLC ............................................... 134 b. Disadvantages of the LLC ........................................... 135 3. Nonprofit, Tax-Exempt Organization ................................ 137 a. Advantages of Nonprofit, Tax-Exempt Organizations .............................................................. 139 b. Disadvantages of Nonprofit, Tax-Exempt Organizations .............................................................. 140 III. L3Cs ................................................................................................ 141 A. Advantages of the L3C ............................................................ 142 B. Disadvantages of the L3C........................................................ 145 IV. Recommendations for the L3C ....................................................... 150 Conclusion ................................................................................................. 151

* Director and Clinical Assistant Professor of the Entrepreneurship Clinic at the University of Michigan Law School. The author wishes to thank Nicole Dandridge, Maggie Finnerty, Susan Jones, Julie Lawton, Paul Reingold, Robert Satchen, Brenda Smith, Kim Thomas, and Paul Tremblay for their comments on early drafts of this work. This work could not have been completed without the able research assistance of Laura Garber, Justin Bonfiglio, Nicholas Misek, Josh Clark, and Erika Jost.

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AUBLR Volume 2 Issue 1