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For Benefit Corporation: a Vermont first

yin yangThe goal of for-profit companies is, naturally enough, to make profits.

Legislation has been introduced in Vermont that would allow companies to exist for other reasons — providing a social good for the community while returning gains to investors. Such companies would register as a “beneficial corporation.”

“This bill proposes to allow new and existing for-profit corporations to elect status as a for-benefit corporation with the purpose, among other things, of creating public benefit,” the proposed legislation says. The measure is called the Vermont Benefit Corporation Act. The bill views a public benefit as “a material positive impact on society and the environment, as measured by a third-party standard, through activities that promote some combination of specific public benefits.”

Other States that are discussing such legislation–much of it inspired by B Corporation thinking (WorkSavvy LLC is a founder BCorp) include California, Maryland, New York, Pennsylvania, North Carolina, Colorado and Oregon.

PLEASE NOTE: There is tons of useful stuff on Startup Owl, a site that’s been going for a dozen years. So keep browsing, but know that the founder, Will, now devotes most of his time and energy to his new website that you should definitely visit: https://venturefounders.com

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