Benefit Corporations (B-Corp)

The pur­pose of a ben­e­fit cor­po­ra­tion is to cre­ate gen­eral pub­lic ben­e­fit, which is defined as a mate­r­ial pos­i­tive impact on soci­ety and the envi­ron­ment.
In a tra­di­tional cor­po­ra­tion the offi­cers and direc­tors are required to con­sider the impact of their deci­sions on the prof­its of the com­pany for the ben­e­fit of the share­hold­ers. Offi­cers and direc­tors are bound by this fidu­ciary duty and often times must max­i­mize the ben­e­fit to the share­holder over third-party interests.

In a ben­e­fit cor­po­ra­tion the offi­cers and direc­tors are also required to con­sider how their deci­sions will impact not only share­hold­ers but also soci­ety and the envi­ron­ment.
The offi­cers and direc­tors of a ben­e­fit cor­po­ra­tion have more free­dom to make deci­sions that will bet­ter the world around them, and not just strictly cre­ate profit for the Corporation.

How to Form a B Corp
A B-Corp dif­fers from a C or S Corp in pur­pose, account­abil­ity, and trans­parency but not in the way it is taxed.
For­ma­tion of a B Corp can vary from State to State and care­ful atten­tion should be paid to the bylaws of the cor­po­ra­tion. You should con­sult with an expe­ri­enced busi­ness attor­ney who can guide you.

What is a cer­ti­fied B– Cor­po­ra­tion
Cer­ti­fied B Cor­po­ra­tions are social enter­prises ver­i­fied by B Lab, a non­profit orga­ni­za­tion.
This is a pri­vate label­ing require­ment which a com­pany can chose to apply for or not. A com­pany can be reg­is­tered as a Ben­e­fit Cor­po­ra­tion with their Sec­re­tary of State but not be reg­is­tered with B Lab.

To obtain cer­ti­fi­ca­tion appli­cants must meet cer­tain per­for­mance require­ments show­ing that the com­pany pro­vides a ben­e­fit, pay an annual fee and re-certify after a num­ber of years.
Cer­ti­fi­ca­tion allows the com­pany to use the offi­cial “Cer­ti­fied B Corp” logo.

Is a B Corp right for me?

Whether a B Corp is right for you is an indi­vid­ual choice that should be made after con­sult­ing with an expe­ri­enced attor­ney.
For more than 15 years, we have been advis­ing suc­cess­ful exec­u­tives, investors, entre­pre­neurs, prop­erty own­ers, and other accom­plished indi­vid­u­als. We help them suc­cess­fully solve a vast array of com­plex, chal­leng­ing and sen­si­tive legal issues. We work with a select clien­tele who con-tinue to use our ser­vices year after year.
Con­tact us today for a consultation.