It has been a busy year for proponents of new legal forms. The benefit corporation goes into effect in Virginia on July 1. Benefit corporation legislation has also been introduced in California, Colorado, Hawaii, North Carolina, Pennsylvania, and Michigan. Maryland, the first state to pass benefit corporation legislation, recently authorized LLC versions of the benefit corporation.
Daily Dose of Nonprofit Law
Category Archives: B-Corp.
B Corps is Not a New Legal Form by Keren G. Raz
Critically, a Certified B Corporation (hereinafter referred to as B Corps or a B Corporation) is a label given by B Lab to businesses that pass a socially responsible certification process. B Corps is not a legal form and has no legal significance. A benefit corporation, on the other hand, is a new legal form, that became law in Maryland on October 1, 2010. Legislation similar to that in Maryland will become law in Vermont in July and was recently passed by the New Jersey legislature.
