This Day On The Street
Continue to site right-arrow
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
Cramer's Action Alerts PLUS - See his portfolio and get alerts BEFORE every trade. Learn more NOW!

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 , 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.

1 of 3

Check Out Our Best Services for Investors

Action Alerts PLUS

Portfolio Manager Jim Cramer and Director of Research Jack Mohr reveal their investment tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
Quant Ratings

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
Stocks Under $10

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

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
14-Days Free
Try it NOW
Only $9.95
Try it NOW
14-Days Free
Try it NOW

Check Out Our Best Services for Investors

Dividend Stock Advisor

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
  • Updates with exact steps to take - BUY, HOLD, SELL
Trifecta Stocks

Every recommendation goes through 3 layers of intense scrutiny—quantitative, fundamental and technical analysis—to maximize profit potential and minimize risk.

Product Features:
  • Model Portfolio
  • Intra Day Trade alerts
  • Access to Quant Ratings
Options Profits

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

Product Features:
  • Actionable options commentary and news
  • Real-time trading community
Try it NOW
Try it NOW
Try it NOW
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.
Submit an article to us!
CRM $69.38 0.00%
INTU $97.63 0.00%
AAPL $128.46 0.00%
FB $78.97 0.00%
GOOG $558.40 0.00%


DOW 18,132.70 -81.72 -0.45%
S&P 500 2,104.50 -6.24 -0.30%
NASDAQ 4,963.5270 -24.3630 -0.49%

Partners Compare Online Brokers

Free Reports

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