Most grant monies are awarded to nonprofit entities. The grants that i am interested in are government based grants for research. Is there a way for an LLC to get government grants without converting to a nonprofit?

Look into an L3C. An L3C is a low-profit, limited liability company, aka a hybrid of a nonprofit and for-profit organization. More specifically, it is a new type of limited liability company (LLC) designed to attract private investments and philanthropic capital in ventures designed to provide a social benefit. Unlike a standard LLC, the L3C has an explicit primary charitable mission and only a secondary profit concern. But unlike a charity, the L3C is free to distribute the profits, after taxes, to owners or investors.

The principal advantage of the L3C is its qualification as a program related investment (PRI), an investment with a socially beneficial purpose that is consistent with and furthers a foundation’s mission. Because foundations can only directly invest in for-profit ventures qualified as PRIs, many foundations refrain from investing in for-profit ventures due to the uncertainty of whether they would qualify as PRIs or use costly time and resources to acquire a Private Letter Ruling from the IRS to verify that the venture is a valid PRI. An L3C’s operating agreement minimizes this problem by specifically outlining its respective PRI-qualified purpose in being formed, making it easier for foundations to identify social-purpose businesses as well as helping to ensure that their tax-exemptions remain secure.

Which states use an L3C? Can i create an L3C in Chicago? Are there any federal reporting obligations similar to a 501C3

Only Vermont and Michigan authorize the use of L3Cs

Lets say i file in Michigan. What is the filing requirement? How does the application differ from that of an LLC. I tried reading the statute and i was a bit confused as it didnt discuss what needed to be dont and i couldnt find the form for it either.

You purpose statement must contain the operative language of the statute which says that purpose of the company is charitable. In addition, the letters L3C must be in the name. You also need to prepare bylaw and have a board of directors. Its that simple.