Benefit companies are on the rise in the wake of the sustainability movement. A Benefit company, B-Corp, or BLLC is a type of business that values sustainable business over unsustainable profit.
There are a couple of different types of Benefit companies, and each has different requirements per state or country. This post is just an overview of the different types of Benefit Companies.
Do you Need to Register as a Benefit Company?
Benefit companies are an awesome choice for sustainable businesses who want to receive recognition for their sustainable contributions. Benefit companies have annual registration fees.
Unless you are a truly sustainable business, it may be wise to just incorporate as a regular corporation or LLC.
Benefit Companies can take at Least 1 Year to Register
Sustainable startups are often interested in becoming a registered B-Corp or BLLC. Many startups don’t make it through their first year, and registration for B-corps takes at least a year to process. B-Corp Pending means that the company is going through its first year of proving their sustainable contributions.
You can Register a BLLC Right away. Depending on the state’s requirements, an annual sustainability report can be provided to prove the intentionality behind the business’s plan to combine profit, environmentalism, and social justice.
How to Register as a Benefit Company
First, to register as a Benefit Company, it’s important to seek out your state’s Benefit company requirements. Some states allow you to register as a separate S-Corp, or C-Corp and use third party verification to tag on the title of B-Corp. Other states require to register an LLC as a BLLC initially to receive the recognition.
- Go to your state’s website and search for business registration requirements
- Fill out the required paperwork
- Create a statement of intent, or annual report highlighting your company’s sustainability initiatives
- Pay the registration fees, varies by state
- Submit necessary paperwork
- Wait for confirmation
After all this is done, It is safe to start posting to your social media about your benefit company. Set a reminder about your annual registration to keep yourself current.