Benefit Corps & Purpose LLCs: DE, CA, and Beyond

Introduction

Benefit corporations have gained significant traction over the past decade as a novel way for businesses to balance profit-seeking activities with socially responsible missions. Entrepreneurs, investors, and community stakeholders are all showing greater interest in business forms that allow for the pursuit of both financial returns and public benefits. In contrast to traditional corporations—where directors are generally required to maximize shareholder value—benefit corporations take on added responsibilities: namely, to create a general public benefit and in some states to report on specific public benefits. In some jurisdictions, variants such as “social purpose corporations,” “public benefit corporations,” or “benefit LLCs” (sometimes known as “purpose-driven LLCs”) expand the concept even further.

The demand for legal structures that facilitate “doing well by doing good” is especially high in entrepreneurial hotspots like California and Delaware, where many companies incorporate. This article will explore the salient features of benefit corporations and similar purpose-driven entities, detailing how they arise under California law (Cal. Corp. Code §§ 14600–14631) and Delaware law (Del. Code Ann. tit. 8, §§ 361–368), as well as in other popular jurisdictions. We will also examine LLCs with a purpose-based mission and look briefly at a few international equivalents of benefit corporations. Finally, we will provide practical, lawyerly guidance for individuals and businesses that are contemplating formation of a benefit corporation or a similar entity, followed by an FAQ section that addresses common questions readers tend to have.

By the end of this piece, you should have a nuanced understanding of how to form and maintain benefit corporations, how to align your for-profit business with positive social or environmental objectives, and what key statutes and requirements govern this process. Although we will focus heavily on California and Delaware law, we will also look at other states and briefly scan the international scene to give you a well-rounded vantage point on this fast-evolving area of corporate law.

Understanding Benefit Corporations

A benefit corporation is a legal entity that allows a for-profit enterprise to publicly declare and legally adopt social and environmental missions alongside the pursuit of profit. Unlike a “traditional” corporation, which has traditionally been viewed as existing primarily to maximize shareholder value (subject, of course, to the constraints of law and corporate formalities), a benefit corporation explicitly incorporates stakeholder interests into its organizing documents and overarching purpose.

The legal architecture supporting benefit corporations aims to protect directors and officers from potential liability should they choose to prioritize the company’s stated social or environmental objectives. In other words, the board of a benefit corporation enjoys legal protection for considering the interests of not just the shareholders, but also employees, communities, and the environment. Indeed, these broader considerations are built into the statutory requirements in states that have passed benefit corporation legislation.

The Emergence of a Hybrid Form

Before the advent of the modern benefit corporation statutes, there was a legal and philosophical debate about whether existing corporate law adequately allowed directors to consider social issues. The often-cited case Dodge v. Ford Motor Co. (170 N.W. 668 (Mich. 1919)) is traditionally understood to have stated that a corporation’s primary purpose is to maximize shareholder return. While modern jurisprudence is not always so rigid, the notion that directors could risk legal exposure for subordinating shareholder value to social or environmental priorities contributed to calls for a new type of entity. The result was a wave of state legislation, starting around 2010, to formally incorporate public benefit objectives into corporate statutes.

This model has caught on widely. Now, the majority of U.S. states have passed some form of benefit corporation legislation. The uniform approach is grounded in allowing or requiring boards to consider non-financial interests. However, each state has unique nuances. California, for example, has a robust and detailed statutory scheme (Cal. Corp. Code §§ 14600–14631), while Delaware’s approach (Del. Code Ann. tit. 8, §§ 361–368) uses the term “public benefit corporation” and has its own distinctive requirements for drafting, reporting, and accountability.

Distinguishing Features of Benefit Corporations

Benefit corporations sit at the intersection of nonprofit and for-profit organizations, but they are not themselves nonprofits. Rather, they remain for-profit entities with shareholders, equity interests, and the possibility of returning profits. What makes them different from traditional corporations?

One key difference is the mandatory or optional creation of a “general public benefit” as defined by statute. In California, for example, a benefit corporation is required to pursue a “general public benefit,” which typically means a material, positive impact on society and the environment, taken as a whole. Other states, such as Delaware, require a “public benefit” to be stated in the certificate of incorporation and define it as a positive effect on one or more categories of persons, entities, communities, or interests (other than stockholders in their capacities as stockholders), including effects of an artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific, or technological nature (Del. Code Ann. tit. 8, § 362(b)).

Benefit corporations generally must also publish (or at least prepare) annual or biennial benefit reports assessing their social and environmental performance. In California, the law prescribes specific guidelines on how to measure this impact (Cal. Corp. Code § 14630). Some states require that the company choose a “third-party standard” for its benefit reporting. Others are more flexible, allowing the benefit corporation to define its own measurement systems, as long as they meet statutory guidelines.

Moreover, in a benefit corporation, directors are typically allowed—if not required—to consider the effect of corporate actions not just on shareholders but also on other stakeholders, such as employees, suppliers, and the community at large. This expansion of fiduciary duties is codified in many states’ benefit corporation statutes. For example, Delaware’s public benefit corporation law states that directors must balance stockholders’ pecuniary interests, the best interests of those materially affected by the corporation’s conduct, and the specific public benefit(s) identified in its certificate of incorporation (Del. Code Ann. tit. 8, § 365(a)).

Benefit Corporation Legislation in California

Because this blog is written by a California lawyer, it is fitting to begin with an in-depth look at how benefit corporations are handled in California. The statutory authority for benefit corporations is contained in the California Corporations Code at §§ 14600–14631, which came into effect on January 1, 2012.

Statutory Requirements

Under California law, a benefit corporation must state in its articles that it is a benefit corporation subject to the provisions of Cal. Corp. Code §§ 14600–14631. This language is crucial, as it differentiates the entity from a standard for-profit corporation. The entity must also commit to creating “general public benefit.” In addition, it may include one or more “specific public benefits” in its articles if it wishes to highlight particular issues—such as environmental conservation, low-income community assistance, or the advancement of the arts—that it will seek to address.

California imposes certain corporate governance obligations on benefit corporations. Directors must consider the impact of corporate decisions on shareholders, employees, suppliers, customers, the community, society, and the environment. They are also required to include an assessment of the corporation’s overall social and environmental performance in an annual (or in some cases, more frequent) benefit report.

Annual Benefit Report

California law (Cal. Corp. Code § 14630) requires benefit corporations to prepare an annual benefit report that includes a discussion of the corporation’s success in creating general public benefit. Many companies choose to rely on third-party standards for this assessment. While the statute does not prescribe a specific standard, it does reference “any third-party standard that measures the overall social and environmental performance” of the business.

The annual benefit report must be provided to all shareholders within 120 days following the end of the fiscal year or at the same time the benefit corporation delivers any other annual report to shareholders. Additionally, the benefit corporation must post the benefit report on its website (unless it has no website, in which case it must provide a copy free of charge upon request).

Director and Officer Duties

Under Cal. Corp. Code § 14620, directors and officers of a benefit corporation must consider stakeholders, including employees, customers, the local community, and the environment. They are granted a “safe harbor” for doing so, meaning that they are protected from liability to shareholders who might argue that the directors should have maximized profits to the exclusion of all else. That said, these expanded fiduciary obligations do not eliminate the directors’ duty to make decisions that are generally in the best interests of the corporation. Rather, the law allows them to give weight to non-financial interests when making decisions.

Benefit Corporation Legislation in Delaware

Delaware is the most popular state of incorporation for large corporations, tech startups, and many other businesses of all sizes. Its corporate law is well-established, and its courts are known for their business expertise. The state introduced legislation creating the public benefit corporation (often abbreviated as “PBC”) in 2013 under Del. Code Ann. tit. 8, §§ 361–368. This was a milestone, as Delaware’s adoption of any business form often signals broader acceptance nationwide.

Formation and Purpose

Delaware law requires a public benefit corporation to identify one or more specific “public benefits” in its certificate of incorporation (Del. Code Ann. tit. 8, § 362(a)). A “public benefit” is defined as a positive effect on one or more categories of persons, entities, communities, or interests, other than stockholders in their capacities as stockholders. This could be artistic, charitable, cultural, economic, educational, environmental, literary, medical, religious, scientific, or technological (Del. Code Ann. tit. 8, § 362(b)).

Once a corporation elects PBC status and identifies its purpose, it must balance (i) the stockholders’ pecuniary interests, (ii) the interests of those materially affected by the corporation’s conduct, and (iii) the public benefit(s) identified in its certificate of incorporation (Del. Code Ann. tit. 8, § 365(a)). This tri-partite balancing is a core feature of Delaware public benefit corporations and, indeed, sets them apart from standard Delaware corporations, whose directors may take stakeholder interests into account but typically must justify such considerations as rationally related to shareholder value. In a PBC, the statutes explicitly recognize that directors should weigh social considerations equally alongside pecuniary ones.

Reporting Obligations

Delaware requires PBCs to provide a “statement as to the corporation’s promotion of the public benefit or public benefits identified in the certificate of incorporation and of the best interests of those materially affected by the corporation’s conduct.” (Del. Code Ann. tit. 8, § 366(b)). Currently, the law mandates that this report be provided to shareholders at least every two years, unless the certificate of incorporation or bylaws require it more frequently. Delaware’s law does not require that the report be made public, although many PBCs voluntarily publish it to enhance transparency.

Shareholder Enforcement

One particularly interesting aspect of Delaware’s PBC law is the shareholder enforcement mechanism. Stockholders who own, individually or collectively, at least 2% of the corporation’s outstanding shares (or shares with a market value of at least $2 million, for publicly traded entities) have standing to bring a derivative lawsuit to enforce the requirements of balancing under § 365(a). This is a more explicit enforcement right than is seen in some states, providing a measure of accountability for a PBC’s stated public mission.

Benefit Corporation Legislation in Other Popular States

Many other states have followed California and Delaware in adopting benefit corporation or public benefit corporation statutes. While we will not explore the idiosyncrasies of every state statute in detail here, it is helpful to highlight a few other popular states for incorporation or organization:

• New York: Benefit corporation legislation is found in the New York Business Corporation Law §§ 1701–1709. New York requires a general public benefit, but companies can specify additional specific public benefits. New York also imposes annual reporting obligations.

• Washington: Washington has a “social purpose corporation” statute (RCW §§ 23B.25.005–23B.25.150), which is conceptually similar to a benefit corporation, although it uses different terminology and does not mandate the same level of reporting as, say, California or Delaware.

• Colorado: Colorado recognizes public benefit corporations under Title 7 of the Colorado Revised Statutes. These rules also require a statement of public benefit in the articles and impose certain reporting obligations.

Most states that have enacted benefit corporation legislation follow the general approach set out by early adopters. The legislation typically includes provisions on formation, minimum benefit requirements, expanded fiduciary duties, and annual or biennial benefit reporting. The specific requirements, though, may differ regarding the standard used for measuring a public benefit, the enforcement rights available to shareholders, or the nature and extent of public disclosure. Prospective filers should review the statutes of the jurisdiction they find most advantageous, keeping in mind the possible differences in tax treatment, capital-raising environment, and relevant case law.

LLCs with a Purpose: A Related Alternative

Benefit corporations are not the only path to combining mission-driven objectives with a for-profit structure. A number of states recognize or are beginning to recognize forms of limited liability companies that incorporate social or environmental benefits into their organizing documents. Sometimes referred to colloquially as “purpose-driven LLCs,” these entities attempt to serve many of the same objectives as benefit corporations but through the more flexible LLC structure.

Why LLCs?

Limited liability companies are favored by many smaller businesses and startups for their flexibility in governance, taxation, and ownership structure. They can be member-managed or manager-managed, and they typically do not have to adhere to the same level of formality that corporations require (e.g., the need for annual board meetings or the issuance of stock certificates). The flexible nature of an LLC operating agreement also lends itself to customizing fiduciary duties or requiring certain mission-driven provisions.

In states that explicitly allow for a “benefit LLC” or a “social purpose LLC,” statutory provisions will set out the requirements for stating a public benefit, balancing stakeholder interests, and providing accountability or transparency through periodic reports. Even in states that do not have a separate “benefit LLC” law, it may be possible to draft an operating agreement that recites the LLC’s social or environmental mission, modifies the duties of the managers or members, and establishes a regime for monitoring and reporting performance. Still, to obtain the recognized status that a “benefit LLC” might enjoy—and to take advantage of any statutory safe harbors for directors—business owners would need to rely on an actual statutory framework if available.

Legal Authority and Considerations

Each state may have varying statutes or legal precedents. For instance, Colorado, in addition to having a public benefit corporation statute, introduced a “low-profit limited liability company” (L3C), intended to attract philanthropic investors to socially beneficial ventures. Other states permit operating agreements to modify fiduciary duties in ways that allow for the pursuit of social good. For example, Delaware LLC law is famously flexible in how fiduciary duties can be expanded, limited, or eliminated by contract, subject to the implied contractual covenant of good faith and fair dealing (Del. Code Ann. tit. 6, § 18-1101(c)).

When forming a purpose-driven LLC, it’s crucial to carefully draft the operating agreement so that it clearly states (1) the entity’s purpose(s), (2) the duties owed by members or managers, and (3) any reporting or enforcement mechanisms. Relying on general LLC statutes without such contractual clarifications could lead to confusion or disputes down the road, especially if some members prioritize social benefits while others prioritize profit or liquidity.

International Equivalents of Benefit Corporations

While the U.S. has seen a rapid rise in benefit corporations, various other countries are experimenting with similar models. In Canada, British Columbia allows for a “Community Contribution Company” (C3), a hybrid entity that is required to dedicate a portion of its profits to social enterprises or charities. The United Kingdom introduced the “Community Interest Company” (CIC) structure, governed by the U.K. Companies (Audit, Investigations and Community Enterprise) Act 2004. A CIC is required to submit an annual community interest report and must serve a community purpose; it has an “asset lock” that ensures assets and profits are primarily used to benefit the community. Other countries, such as Italy and Colombia, have also adopted variants of benefit corporation legislation or recognized new legal forms that incorporate both social and economic objectives.

These developments demonstrate that the idea of purpose-driven businesses transcends U.S. borders. Entrepreneurs operating internationally or working closely with partners abroad may find it beneficial to explore these structures to ensure their social or environmental goals are honored under the relevant foreign legal regime.

Practical Tips for Forming a Benefit Corporation (or a Purpose-Driven LLC)

If you are considering forming a benefit corporation or a purpose-driven LLC, you should think through various corporate and business issues to make the most of this forward-thinking entity type. Below are some important considerations and suggestions that frequently come up in practice:

Drafting the Purpose Clause. Whether you choose a California benefit corporation, a Delaware public benefit corporation, or a purpose-driven LLC, be precise in stating the purpose or mission in your organizing documents. You may opt for a broad general public benefit statement or incorporate specific goals, but clarity helps avoid misunderstandings and offers stronger guidance to the board of directors or managers.

Choosing the Right State of Incorporation or Organization. California-based entrepreneurs might find it convenient to file in California, especially if they plan to maintain physical operations here. However, Delaware’s legal infrastructure and well-known Court of Chancery can be extremely attractive, especially for those anticipating venture capital investment. Other states might provide simpler or more flexible requirements. Make a careful comparison of applicable laws before deciding.

Planning for Governance and Reporting. Benefit corporations require annual (in California) or biennial (in Delaware) reports addressing the company’s social or environmental performance. You will want to establish internal procedures—whether via committees, outside auditors, or specialized in-house departments—that can measure, track, and report on your chosen benefit metrics. Keep in mind that some states require third-party validation, while others allow you to self-evaluate according to chosen standards.

Enforcement Mechanisms and Fiduciary Duties. Some states, particularly Delaware, permit shareholders to bring derivative suits to enforce the balancing requirements of the public benefit corporation statutes. This can be a major advantage for those who prioritize accountability, but it also creates potential litigation risk. Directors and officers should understand their expanded duties and weigh the interests of all constituencies accordingly.

Drafting the Operating Agreement for Purpose-Driven LLCs. If you are going the LLC route, be sure your operating agreement sets out in detail how decisions will be made, how profits will be distributed, and how social or environmental goals factor into day-to-day and long-term decision-making. Clarify whether certain members or managers have “mission veto” rights or other special rights that ensure the purpose remains central even as the company grows.

Financing and Capital Structure. Traditional investors may be skeptical of an entity that has a mandatory social or environmental mission, fearing that profits could be subordinated. That said, a growing cadre of impact investors, venture capital funds with environmental, social, and governance (ESG) mandates, and philanthropic institutions are actively seeking out benefit corporations. You should familiarize yourself with the expectations of these impact-oriented investors and make sure your mission is aligned with your capital sources.

Transparency and Marketing. Once formed, many benefit corporations and purpose-driven LLCs highlight their status in marketing materials to appeal to conscious consumers, socially minded employees, and ESG-focused investors. Use the statutory reporting requirement as an opportunity to show your stakeholders how you are delivering on your mission. This accountability can be a key brand differentiator.

Ongoing Compliance. Remember that forming a benefit corporation is only the first step. Ongoing compliance, particularly preparing and distributing annual (or biennial) benefit reports, is vital. Make sure you file the required statements with the relevant Secretary of State or other regulatory authorities as needed, and keep your internal governance documents up to date as your company evolves.

Frequently Asked Questions

Below are several common questions I have encountered in practice that were not fully addressed in the main body of this blog post. Each question is answered in a thorough manner reflecting the type of guidance an experienced corporate lawyer might give.

How do I choose between a traditional corporation and a benefit corporation if I care about social impact?

Traditional corporations certainly can (and often do) engage in socially responsible activities, and many corporate directors already consider stakeholders beyond just shareholders. However, these directors sometimes worry about potential liability if they divert significant corporate resources to social or environmental programs that do not maximize shareholder value. With a benefit corporation, the statute explicitly empowers directors to prioritize stated social or environmental objectives, providing statutory “cover” if they face shareholder accusations of not maximizing profit.

If you strongly desire to incorporate a public mission into your company’s DNA—and want legal protection to consider non-shareholder interests—then a benefit corporation offers a clearer and more formal structure. If your social impact goals are subordinate or peripheral to profit, a traditional corporation might suffice. It really depends on the weight you wish to give your social mission and whether you want that mission recognized legally.

Can I convert my existing corporation into a benefit corporation in California or Delaware?

Yes, both California and Delaware have statutory provisions that allow an existing corporation to convert or “opt in” to benefit corporation status. In California, this is governed primarily by Cal. Corp. Code § 14603. In Delaware, a corporation can amend its certificate of incorporation to become a PBC under Del. Code Ann. tit. 8, § 363(a). Keep in mind that you typically need approval by a certain percentage of shareholders—often a two-thirds majority, though the exact threshold may vary in each state’s statute or under the company’s governing documents. Therefore, if any significant block of shareholders opposes the conversion, you will need to navigate that issue carefully, potentially offering appraisal rights or otherwise seeking consensus on the matter.

Do benefit corporations receive any special tax advantages?

Generally, a benefit corporation is treated the same as a traditional for-profit corporation for tax purposes (in other words, there is no inherent tax exemption like a nonprofit might receive). Some states or localities might have incentive programs or procurement preferences for socially responsible businesses, but there is no broad federal tax benefit just for adopting a benefit corporation form. Instead, the advantages lie in the legal framework that balances profit-making with a stated mission. If you seek tax-exempt status like a 501(c)(3) organization, then the benefit corporation model is not the right path; you would need to form a nonprofit.

Can benefit corporations distribute profits to shareholders?

Yes. A benefit corporation is a for-profit entity, and it can distribute dividends to shareholders just like any other corporation. The difference is that the corporation is also committing to operate in a manner that creates a general or specific public benefit. As long as the directors comply with their fiduciary duties—balancing the interests of shareholders, the declared public benefit, and other stakeholders—profit distributions are perfectly permissible.

How do I enforce the “benefit” portion of a benefit corporation if the directors abandon the mission?

Enforcement mechanisms vary by state. In Delaware, stockholders who collectively own at least 2% of the corporation’s outstanding shares (or $2 million in market value for a publicly traded corporation) can bring a derivative lawsuit to enforce the balancing requirements under Del. Code Ann. tit. 8, § 365(a)–(b). In California, shareholders may have a right to sue if directors blatantly fail to pursue the general or specific public benefits identified in the articles (Cal. Corp. Code § 14623). However, courts generally give directors substantial discretion, so it can be challenging to prove a violation unless there is clear disregard for the statutory mandates or an outright conflict of interest.

Are benefit corporations required to use a particular third-party standard to measure their impact?

In many states, including California, benefit corporations must prepare or rely on a third-party standard in assessing their social and environmental performance (Cal. Corp. Code § 14630(a)(2)). This does not necessarily mean that the company must retain an outside consultant to prepare the report, but the corporation should benchmark its performance against an established framework or set of metrics (e.g., B Lab’s B Impact Assessment, the Global Reporting Initiative (GRI) framework, or another recognized ESG standard). Delaware law, on the other hand, does not strictly require using a third-party standard—though some PBCs do so voluntarily for added credibility.

How do I address potential investor concerns about reduced profitability?

Any socially oriented corporate form, including benefit corporations, can raise questions with certain investors who fear that the pursuit of social objectives could undermine profitability. That said, many impact investors and socially responsible investment funds actually prefer to invest in benefit corporations precisely because the legal structure aligns with their mission. If you anticipate raising capital from conventional venture capital sources, you can reassure investors by emphasizing that directors are still committed to delivering returns; the social mission merely allows for a broader perspective, not an outright dismissal of financial prudence. You can also craft your benefit report to underscore the synergies between positive social impact and strong financial performance.

If I form a purpose-driven LLC, is it viewed differently by regulators?

In most respects, a purpose-driven LLC is still an LLC in the eyes of regulators. The key difference is in the operating agreement, which spells out the broader mission and modifies management’s duties accordingly. Certain states with statutory frameworks for benefit LLCs or low-profit LLCs (L3Cs) might impose additional compliance or reporting requirements. Generally, however, you will still have the usual state filing obligations, tax filings, and other compliance obligations typical of an LLC. The benefit or purpose orientation is primarily relevant for the internal governance structure and your relationships with investors, lenders, and other stakeholders.

Can a benefit corporation later drop its benefit status and revert to a traditional corporation?

Yes, it is possible to “opt out” of benefit corporation status by amending the charter documents and removing the provisions related to the entity’s public benefit. However, as with electing benefit status, such a change typically requires approval by a supermajority of shareholders. California law (Cal. Corp. Code § 14604) and Delaware law (Del. Code Ann. tit. 8, § 363(c)) both specify procedures for exiting benefit corporation status. Dissatisfied shareholders might have appraisal rights, depending on the circumstances and the state’s specific statutory provisions.

Could a benefit corporation lose a lawsuit if it doesn’t achieve its stated public benefit?

Generally, not for merely failing to achieve the stated benefit. Courts usually look at whether the directors made a good-faith effort to pursue the stated objectives and adequately balanced stakeholder interests. In many states, the standard is whether directors were grossly negligent in their process, not whether they achieved perfect results. As long as the directors follow a proper decision-making process that accounts for all relevant stakeholder considerations, they will likely be protected by the business judgment rule. That said, if directors or officers entirely ignore the public benefit mission or engage in fraudulent or self-dealing activities, they could face legal consequences.

Do I need special wording in my bylaws or operating agreement beyond the statutory requirements?

Yes, it is often advisable to ensure that your bylaws (for a corporation) or operating agreement (for an LLC) reflect the entity’s benefit or purpose-driven mission. While the articles of incorporation (or certificate of formation) generally must state that the company is a benefit corporation (or a benefit LLC), additional provisions clarifying director or manager duties, specifying reporting processes, and establishing internal committees can help guide the entity’s governance. These documents work together to make your mission real and operational, rather than just a statement in the charter.

Conclusion

Benefit corporations, along with purpose-driven LLCs and other hybrid business forms, are revolutionizing the way entrepreneurs balance profitability and societal or environmental impact. Starting with early adopters like Maryland and Vermont, and followed by large economic powerhouses such as California and Delaware, these statutes reflect a broader shift in how society views the role of business. Instead of a myopic focus on the bottom line, businesses are encouraged—even required—to consider a broad array of stakeholders, from local communities to global ecosystems.

Whether you are a founder seeking to ensure your company’s ethos remains intact as you scale, or an investor eager to support enterprises that strive for positive impact, exploring the benefit corporation structure is a worthwhile endeavor. The laws in California, Delaware, and other states each offer distinct nuances, so part of the process is determining which jurisdiction best aligns with your vision, capital-raising goals, and stakeholder needs.

Forming a benefit corporation or a purpose-driven LLC is not just a matter of filing a one-page form. It involves understanding expanded fiduciary duties, complying with annual or biennial benefit reporting requirements, and thoughtfully drafting governing documents so that the entity’s social mission is properly integrated into its decision-making processes. But when done correctly, these hybrid forms can provide a powerful legal framework that fosters both financial success and tangible positive change in the world.

Adopters of this structure often enjoy a reputational boost with customers, employees, and investors who value conscientious governance and transparent public benefit reporting. While the concept has not been around long enough for us to fully measure its long-term legal legacy, early results suggest that more entrepreneurs than ever see “doing good” and “making money” as mutually reinforcing. For many, the benefit corporation model proves that the power of law can help sustain that synergy for generations to come.