Startup Funding Espresso -- What Is a Benefits Corporation?

What Is a Benefits Corporation? Hello, this is Hall T. Martin with the Startup Funding Espresso -- your daily shot of startup funding and investing. A Benefits Corporation is a legal entity that is set up to provide a public benefit. The company using this entity must commit to producing a public benefit. The board of directors must consider the consequences of its decisions on the community. The company must provide a report on its social and environmental performance. The standard is the Delaware Public Benefits Corporation or PBC. A B-corp is similar but distinct from a Benefits Corporation. A B-corp is certified by B Labs for meeting social and environmental standards for performance, accountability, and transparency. The company's impact is measured with an assessment tool by B Labs. The intention is to encourage the directors of a company to consider the interests of the broader community. Those pursuing a B-corp must amend their operating agreement. There's an annual fee based on revenue for the company to maintain a certification. Startups providing a social or environmental impact may want to adopt a Benefits entity or B-Corp designation. Thank you for joining us for the Startup Funding Espresso where we help startups and investors connect for funding.Let's go startup something today. ___________________________________ For more episodes from Investor Connect, please visit the site at: http://investorconnect.org Check out our other podcasts here: https://investorconnect.org/ For Investors check out: https://tencapital.group/investor-landing/ For Startups check out: https://tencapital.group/company-landing/ For eGuides check out: https://tencapital.group/education/ For upcoming Events, check out https://tencapital.group/events/ For Feedback please contact [email protected] Please follow, share, and leave a review. Music courtesy of Bensound.