Formation

Benefit as a Benefit Corporation

Is your business making the world a better place but struggling to communicate its public benefit to consumers and investors? Consider filing as a Benefit Corporation or pursuing B Corp Certification to differentiate your company from the crowd.

Forming under this new entity type – available with slight variations in more than a dozen states – empowers corporations to create a material positive impact on society and the environment without fear of breaching fiduciary duties. Directors and officers are protected from liability to consider non-financial interests and preserve the company’s mission during ownership and capital changes. While the company gains flexibility in financing and liquidity situations, shareholders are also protected through corporate accountability measures. Similarly, companies with qualifying corporate structures that meet certain performance standards may apply for B Corp Certification.

Setting up your business to do well by doing good isn’t just socially responsible. It can help differentiate your brand, preserve your social mission, satisfy consumers and attract investors.

Dealing with “Dead Equity”

“Dead equity” refers to company stock owned by individuals and entities no longer contributing to the company. In general, there are two types of dead equity seen on emerging company cap tables: Departed founders/employees. A co-founder or early employee leaves a company or no longer significantly contributes […]