The benefit corporation is a completely voluntary corporate form administered by the state, akin to an LLC or a traditional corporation. The choice of model is entirely up to the business. It does not impact traditional corporations or impose additional requirements or regulation in any way, and benefit corporations do not have to be certified or audited by a third party.
Benefit corporation laws do not change or impact tax law in any way. A benefit corporation still must choose either C or S status like a traditional corporation, and are not taxed differently than other types of corporations.
The only binding way to incorporate morals or mission into a corporate form without risking a shareholder lawsuit is by becoming a benefit corporation. Benefit corporations give entrepreneurs the legal protection & freedom to consider their stakeholders and incorporate their morals and mission into their business. One hundred years of case law have proven that benefit corporation legislation is necessary in order for a company to consider additional stakeholders.
Benefit corporation legislation is bipartisan with a 90% approval rating on all floor votes and has been passed unanimously in 12 states and D.C. The legislation specifically permits companies to include their specific mission in their articles of incorporation, which could focus on values of their choosing.
"Benefit corporations direct the entrepreneurial drive of American businessmen and businesswomen to aggressively address social and environmental problems without the waste and procrastination that often plague government programs that have similar goals. "
"Benefit corporations are a new, innovative type of company that will not only foster job creation but also positively impact our communities. There are plenty of entrepreneurs out there looking to start this kind of socially conscience company and plenty of investors looking to support them. "
"I am excited that the Governor has signed [benefit corporation legislation]. Its passage has the potential to attract millions of dollars from impact investors around the nation and the globe. More and more we are building the Louisiana that we deserve. Through business friendly initiatives that have attracted and continue to attract social entrepreneurs to our State we are laying the groundwork for the economy of the future. "