Incorporating a business is by no means a simple decision as there are so many different moving parts involved in which incorporation method to choose. For new businesses, the most attractive option is a C-Corporation, mainly a Delaware C-Corporation, with the options of an S-Corporation or a Limited Liability Corporation coming after the C-Corporation in terms of popularity. At this point in the twenty-first century, however, the B-Corporation is gaining traction as an ideal option for many businesses. Thus, many entrepreneurs and business-minded individuals are asking themselves: should I become a B-Corporation?
A B-Corporation, or Benefit Corporation, places an emphasis on the impact that a business has in the community rather than just the amount of profit it is able to attain or the amount of product it is able to sell. Specifically, the environmental and social implications of a B-Corp’s business operations are under close scrutiny as these businesses are legally required to produce beneficial outcomes for the overall community.
If a business’s strategic focuses are aligned with social change and environmental consciousness, then a B-Corporation is quite a desirable option. It is important to note that B-Corporations are required by law to produce an annual report that explains the business’s social and environmental contributions as a way to enact effective monitoring platforms for this relatively new type of incorporation.
To achieve B-Corporation status, a business needs to be willing to put in the work to make a difference. If this adherence to social and environmental performance requirements are realistic, then businesses should definitely consider incorporating themselves as a B-Corporation.