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.