This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
See Cramer's multi-million dollar portfolio for FREE and get his new book Get Rich Carefully! Learn More

What It Means to Be a B Corp.

NEW YORK (MainStreet) -- Beginning Friday, businesses in New York State will be able to structure themselves as so-called benefit corporations, or B Corps, a corporate legal structure that will likely appeal to businesses that are for-profit but have also made it part of their mission to contribute to environmental and sustainability efforts.

New York became the seventh state to recognize the legal structure when it passed the law in December. The hope is that by allowing a crop of socially minded entrepreneurs to structure their companies as B Corps, it will encourage more start-ups to come to New York. The move is also potentially significant given the breadth of investment capital -- and those looking for socially responsible investments -- that calls the Big Apple home.

The best example so far of a large company structured as a B Corp is outdoor apparel company Patagonia, which incorporated under California's laws.

"Benefit corporations will create a new industry of corporations with a 'double bottom line' of profit and socially responsible practices -- unlocking billions in potential investments in companies that pursue a positive material impact on society and the environment," according to New York Assembly Speaker Sheldon Silver in a Dec. 13 release.

The first state with B Corp legislation was Maryland, in April 2010. Vermont, Virginia, Hawaii, California and New Jersey have also signed on. Washington, D.C., and three more states -- North Carolina, Pennsylvania and Michigan -- have pending B Corp legislation, according to Benefitcorp.net , a public service Web site run by the nonprofit B Labs, which offers a third-party "certification" for benefit corporations.

Structuring your company as a B Corp isn't much more difficult than creating any other legal structure, such as an S Corp or C Corp, but there are a few differences. The states that have enacted such laws (or that have legislation pending to do so) have not included any tax advantages, B Labs says.

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
DOW 16,408.54 -16.31 -0.10%
S&P 500 1,864.85 +2.54 0.14%
NASDAQ 4,095.5160 +9.2910 0.23%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto
Advertising Partners

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs