The start of a new year always has people reflecting on things they would like to change about their lives and setting goals for the future. Every five years or so, you should meet with your estate planning attorney to review any life changes or changes in the law. You should be on the lookout for the following:
Have you heard of a B-Corp yet? B-Corp is short for "Benefit Corporation." A Benefit Corporation is a type of for-profit business structure. For-profit business structures, by definition, have profit as a legally defined goal. In addition to profit as a legally defined goal, Benefit Corporations include an additional goal: a positive impact on society, workers, the community and the environment. In other words, in addition to considering profit for their shareholders in their decision-making process, Benefit Corporations have an obligation to consider the impact on society and the environment.
States within the United States first started passing Benefit Corporation legislation in 2010. Benefit Corporations are currently a valid form of business structure in 33 states plus the District of Columbia and many other countries. Although North Carolina is not one of the 33 states in the United States that has designated Benefit Corporations as a legal form of business, the state is currently considering legislation to do so.
Even though Benefit Corporation structure doesn’t officially yet exist in North Carolina, businesses in North Carolina can still acquire their “B Corporation certification.” A B Corporation certification, also known as B-Lab certification, is a private certification issued to for-profit corporations by B Lab, a global non-profit organization. In order to obtain B-Lab certification a business must meet certain criteria for social and environmental performance. Although B-Lab certification has no legislative framework (and therefore has no legal status), Certified B-Lab companies are eligible for discounts from outside entities and fellow members. In addition, B-Lab certification is not necessary to obtain Benefit Corporation status.
North Carolina currently has 37 companies that have obtained their B Corporation certification by B Lab. If you are interested in obtaining your B Corporation certification or forming a Benefit Corporation, contact Jesson & Rains.
Contribution by Cyrena Ivie, of Jesson & Rains, LLP
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