Despite being all the rage among non-profit entities for years, benefit corporations have now made their way into the mainstream business arena.
But what are they exactly?
To put it simply, a benefit corporation merges a corporate entity’s pure profit motive with the advancement of stated social goals to form a blended legal entity that is now recognized in at least 30 states (including Pennsylvania) and the District of Columbia. This means that directors of a benefit corporation need to consider the potential societal benefits of the company in addition to making a profit.
So, who would benefit from a benefit corporation?
Benefit corporations are great options for community and environmentally-minded business owners as they work to preserve social goals without sacrificing the ability to make a profit. Because many consumers today are aligning their purchases with their values, benefit corporation status is a great way to differentiate your company from the competition and capitalize on these value-driven consumers.
How can you tell if a benefit corporation is right for you?
Consult a legal professional. The Business Group at Stock and Leader has extensive experience with entity formation matters and would be happy to assist budding entrepreneurs as well as experienced business owners to decide whether the benefit corporation entity may advance their individual business objectives.