The Benefit Corporation profit plus public benefit, in one entity.
A Benefit Corporation is a state-recognized entity type for businesses that pursue both shareholder profit AND a stated public benefit purpose. Directors must consider impact on employees, community, environment, and other stakeholders, not just shareholder value. 35+ US states allow Benefit Corporation formation. Different from B Lab "Certified B Corporation" (a private certification).
A Benefit Corporation (sometimes "Public Benefit Corporation" or "PBC") is a state-recognized for-profit Corporation that has elected to pursue, in addition to shareholder value, one or more "public benefit" purposes such as environmental sustainability, employee welfare, community development, or other social goals.
How it actually works.
A regular Corporation is legally required to prioritize shareholder value above other considerations (Dodge v. Ford, 1919). A Benefit Corporation explicitly modifies this duty: directors must balance shareholder return with the stated public benefit purposes and stakeholder interests.
This is different from "Certified B Corporation," a private certification issued by the nonprofit B Lab. A company can be a state-formed Benefit Corporation without B Lab certification, and a company can be B Lab Certified without being a state-formed Benefit Corporation (though B Lab requires the entity to be a Benefit Corporation in some states).
Benefit Corporations file an "annual benefit report" or similar document each year, disclosing how they pursued their stated public benefit purposes. This adds transparency and accountability obligations beyond regular Corporation reporting.
What to know at a glance.
Common situations.
Side-by-side with related structures.
Common questions.
Which states allow Benefit Corporations?
Is a Benefit Corporation tax-exempt?
What is the difference from B Lab Certified B Corp?
Does Benefit Corp status make it harder to be acquired?
What is the public benefit purpose?
How is the annual benefit report different from regular annual report?
Can a Benefit Corporation be a C-Corp or S-Corp?
Can I convert a regular Corporation to a Benefit Corporation?
Do investors like Benefit Corporations?
Should I form a Benefit Corp in Delaware?
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