Earlier this year, benefit corporations have garnered a lot of attention in the media as laws were passed in California and New York enabling the formation of benefit corporations . Unlike traditional corporations, benefit corporations are required to create a general public benefit, and directors and officers are protected should they take into account non-financial values in major company decisions. This requirement resonates well with many entrepreneurs’ desire to operate companies that are not only profitable, but also socially and environmentally conscious. As a firm servicing entrepreneurs, CyberlawStudio has received many inquiries as to the differences between incorporating as a benefit corporation under state laws, being certified as a B Corp by B Lab, and how both differ from a nonprofit organization. CyberlawStudio releases this bulletin* which discusses the issues typically raised by entrepreneurs and hope that the bulletin will be helpful to readers should they be interested in becoming a benefit corporation.
*This bulletin is for informational purposes only and do not constitute legal, accounting or other professional advice.