Facebook's Zuckerberg Defends Giving Money to LLC | NECN

Facebook's Zuckerberg Defends Giving Money to LLC

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    NEWSLETTERS

    Mark Zuckerberg and his wife Priscilla Chan with their infant daughter.

    Facebook CEO Mark Zuckerberg responded to critics questioning why he and his wife Priscilla Chan decided to give 99 percent of Facebook shares to private limited liability company (LLC), instead of a traditional non-profit charity.

    Chan and Zuckerberg made the announcement after the birth of their daughter, saying the they were giving away the shares, currently worth around $45 billion, over their lifetimes to philanthropic causes.   

    At first the media gave them nothing but "Likes," but then some people started questioning why the couple was giving money to a private limited liability company. Zuckerberg explained Thursday that by "using an LLC instead of a traditional foundation, we receive no tax benefit" but instead "gain flexibility to execute our mission more effectively."