Incorporation

Benefit Corporation

A Benefit corporation is the middle ground between a standard corporation and a Not-for-Profit. Benefits commit to creating a public benefit, but also sustainability as they aim to generate a profit. The ability to remain sustainable is integral to the value of a Benefit Corporation. Benefit Corporations are required to report their progress towards their specific cause. Benefit Corporations are also committed to higher standards of purpose, accountability and transparency.

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Purpose

Benefit Corporations must create a general public benefit, but also be sustainable as a business.

Accountability

Directors and Officers must consider the impact their decisions will have on shareholders, employees, suppliers, customers, community, and the environment.

Transparency

Benefit Corporations must publish an annual Benefit report with a recognized third party organization.

Right of Action

Shareholders and directors have the right of action for violations.

Change of Structure

Benefit Corporations may change the control, purpose or structure of the organization with a 2/3 vote in most states.

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