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.
Is Delaware Still the Best Place to Incorporate?
For decades, Delaware has been the go-to jurisdiction for businesses looking to incorporate in the United States. Delaware’s business-friendly laws, well-established legal precedents, and efficient chancery court system have made it a favorite among entrepreneurs and large corporations alike. Notably for tech startups, these same features also […]
How VCs Determine Pre-Money Valuation
Venture capitalists (VCs) play a crucial role in the startup ecosystem by providing the necessary funding to help emerging companies grow and scale. However, before VCs decide to invest, they must determine the value of the company in question. Valuing a startup is a complex process that […]
Fiduciary Duties in LLCs
In contrast to the duties that corporate boards of directors owe to shareholders, LLC fiduciary duties is a topic that often goes under the radar yet holds significant legal and operational implications.