Another 14 states are expected to pass the legislation in 2015. Whereas a Benefit Corporation, which is legally binding and currently recognized by six states, does not require a company to adhere to the same standards as the certification. Delaware, the “corporation capital,” adopted its benefit corporation statute in 2013. A public benefit corporation created by a government, also known as a statutory corporation or government owned corporations, generally provide free or subsidized services or benefits … Make sure that state in which the business is incorporated allows authorized benefit corporations. A Benefit Corporation’s articles of incorporation must state that the corporation is a Benefit Corporation, and that one of its purposes is to create a general public benefit. In addition to earning a profit, it takes society, workers, the community, and the environment into consideration before making business decisions. A benefit corporation preserves a company's mission in the following ways: This was a determination made by the Secretary of State's Office, so please ensure your counsel reaches out to the Secretary of State before making the transition to benefit corp status. Originally implemented in Maryland in 2010, benefit corporations are considered a new type of business structure. Each has a board of directors, officers, and shareholders who own shares in the company. Washington state - referred to as a "social benefit corporation.". Promoting the advancement of knowledge, the arts, and sciences. It should state the altruistic purpose to which the corporation is dedicated. The directors in a benefit corporation must balance the interests of the following parties: Currently, there are more than 40 states that have proposed or passed legislation acknowledging benefit corporations. First, the organization should form a Delaware Non-Stock company. Prepare an annual benefit report identifying: There are three steps that need to be taken in order to make the change: What are the Compliance Responsibilities that are Specific to Benefit Corporations? How to Become an Wisconsin Benefit Corporation, How to Become an West Virginia Benefit Corporation, How to Become an Washington, DC Benefit Corporation, How to Become an Virginia Benefit Corporation, How to Become an Vermont Benefit Corporation, How to Become an Utah Benefit Corporation, How to Become an Texas Benefit Corporation, How to Become an South Carolina Benefit Corporation, How to Become an Rhode Island Benefit Corporation, How to Become an Pennsylvania Benefit Corporation, How to Become an Oregon Benefit Corporation, How to Become an Oklahoma Benefit Corporation, How to Become an New York Benefit Corporation, How to Become an New Mexico Benefit Corporation, How to Become an New Jersey Benefit Corporation, How to Become an New Hampshire Benefit Corporation, How to Become an Nevada Benefit Corporation, How to Become an Nebraska Benefit Corporation, How to Become an Montana Benefit Corporation, How to Become an Minnesota Benefit Corporation, How to Become an Massachusetts Benefit Corporation, How to Become an Maryland Benefit Corporation, How to Become an Maine Benefit Corporation, How to Become an Louisiana Benefit Corporation, How to Become an Kentucky Benefit Corporation, How to Become an Kansas Benefit Corporation, How to Become an Indiana Benefit Corporation, How to Become an Illinois Benefit Corporation, How to Become an Idaho Benefit Corporation, How to Become an Hawaii Benefit Corporation, How to Become an Florida Benefit Corporation, How to Become an Delaware Benefit Corporation, How to Become an Connecticut Benefit Corporation, How to Become an Colorado Benefit Corporation, How to Become an California Benefit Corporation, How to Become an Arkansas Benefit Corporation, How to Become an Arizona Benefit Corporation. A benefit corporation is a Virginia stock corporation whose articles of incorporation provide that it is a benefit corporation and that has, as one of its purposes, the purpose of creating a general public benefit on … Declare that the business is a benefit corporation. Furthermore, benefit corporations are state-regulated, as each state that has adopted benefit corporation statutes or another hybrid entity may have unique requirements specific to transparency, revocation, legacy preservation, or other provisions. Over half of the US states have jettisoned an exclusive focus on profit maximization for shareholders and created new corporate structures, called “benefit corporations”, which give equal standing to the achievement of social and environmental objectives. For example, a non-profit can pledge to benefit one specific group of people; fund research for a … Ability to accomplish its general benefit purpose. Learn More », © Copyright 2020 B Lab. It protects company missions through capital raises and leadership changes, creates more flexibility when evaluating potential sale and liquidity options, and prepares businesses to lead a mission … Nonetheless, some states have evaluated this type as an income generator as a result of the potential for the business development … Some states require all benefit corporations to have a benefit director. Benefit corporation laws don't cost the state. We are working with interested parties to clarify this position and ensure that Colorado requires the same the procedures as other states where the legislation has passed. Shareholders have several means to do this, including filing a shareholder la… In addition to earning a profit, it takes society, workers, the community, and the environment into consideration before making business decisions. Being a benefit corporation or a B Corp is a public declaration that you’re subscribed to a movement that uses business to do good. 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