CONCORD — “State officials say the Local Government Center attempted to “invent a previously unknown entity,” a non-profit limited liability company, to “legitimize a legally questionable corporate restructuring” it arranged eight years ago.
The LGC, a nonprofit formed to provide health insurance for public employees, did this by introducing legislation that would have given it legal status as a non-profit limited liability company, said Earle Wingate III, staff attorney for the N.H. Bureau of Securities Regulation.
Funded by taxpayers and employees’ contributions, the LGC is supposed to be a nonprofit, but there is no such thing in New Hampshire as a non-profit LLC, Wingate told the Herald. In fact, he confirmed, it’s an oxymoron.
A non-profit organization is a tax exempt entity, while a limited liability company is taxable.”