Choosing a benefit company structure is much like choosing a c-corp, s-corp, or LLC structure: a business case blending business and legal acumen is developed considering a particular company’s business goals and aspirations.
For many private companies, choosing a benefit company structure embeds the company’s aspirations to be a force for good into the company’s legal DNA while also communicating to its investors and customers that the company will evaluate itself on a triple bottom line of people, planet and profit. For others, it signals that the company has an ongoing commitment to its purpose, transparency and sustainability in delivering positive outcomes to its stakeholders and shareholders. Still others pursue a benefit company structure in order to meet the legal requirement to become a Certified B Corp (Check out our article to understand the difference between a statutory benefit corporation and a Certified B Corp).
Most States Have Benefit Company Statutes
Great news! As of this writing, 39 states have some type of statutory benefit corporation, limited liability company, or a similar entity types.
The issues that must be considered differ whether you are looking to form a New Benefit Company or convert an Existing Benefit Company.
If your company wants to become a Certified B Corp but is located in a state which does not have a benefit company statute, do not despair. We can advise you on alternatives to meet the B Lab B Corp legal requirement.
Interested in becoming a Benefit corp? Let’s talk.
