A majority of states believe that may be the case. A Benefit Corporation or a “B Corp” is a “triple bottom line” company. Those familiar with B Corps refer to the triple bottom line as the three Ps: People, Planet and Profit. Unlike other corporate forms, where directors operate to maximize profits for its shareholders, B Corps must operate to maximize profits, as well as devote company funds and resources towards other environmental and societal beneficial purposes.
Business owners that want those specific non-economic benefits as part of their corporate governance and structure may find the B Corp an attractive alternative to the traditional C Corp, S Corp or LLC. Companies such as Patagonia, Ben & Jerry’s, Method Products, Plum Organics and Klean Kanteen organized as Benefit Corporations and continue to support the expansion of the corporate structure.
Ohio does not have a B Corp statute, but legislation is currently in the works. On November 13, 2015, Brendon Friesen attended the Ohio State Bar Association (OSBA) hearing before the council of delegates to discuss Benefit Corporations and the OSBA proposed amendments to Chapter 17 of the Ohio Revised Code that would permit the formation of B Corps. The proposal will now go to the Ohio legislature as an OSBA sponsored bill.
For more information on Benefit Corporations, please contact Mansour Gavin LPA’s Corporate and Business Services Group.
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