What is a benefit corporation?

A benefit corporation is a for-profit business that has made a legal commitment to more than just making money. It is a business structure, recognized by most U.S. states, that requires companies to consider how their business decisions affect people and the planet, not just their bottom line. In a traditional corporation, shareholders are typically prioritized. A benefit corporation legally requires consideration of employees, customers, community, and the environment in business decisions.

What is the difference between a B Corp and a benefit corporation?

A benefit corporation is a legal business structure, like an LLC or a sole proprietorship, created by filing paperwork with a state. A B Corp is a certification issued by the nonprofit B Lab after a review of a company's social and environmental practices. Benefit Corporations for Good certification is also a third-party certification, similar to B Corp, but built with small businesses in mind. BCFG is one of only four standards recognized by the Oregon Secretary of State and is the only one based in Oregon.

Why did we start Benefit Corporations for Good?

Benefit Corporations for Good was created because small businesses deserve a way to prove what they stand for. Many purpose-driven business owners are already doing right by their people and their community, but need a trusted and recognizable way to show it. BCFG was created as a certification that is meaningful enough to matter while being built for real small businesses, not only large companies with full-time sustainability teams.

Who is certification for?

Certification is for small businesses that care about their employees, their neighborhood, and the wider world they operate in. Certified businesses include law firms, solar companies, marketing agencies, wine bars, and other industries. Applicants do not need to be perfect, but they need to be serious about their commitment. The process includes a 60-question assessment across eight standards, followed by a short interview. For businesses with five or fewer full-time equivalent employees, the fee is $299.

Benefit Corporation Requirements: What Small Businesses Need to Know

Benefit Corporation Requirements: What Small Businesses Need to Know

Benefit Corporation leaders gathering at Happy Hour for Good.

There’s no single national standard for benefit corporation requirements. The rules come from the state where your business is organized.

But most benefit corporation laws share the same three pillars: purpose, accountability, and transparency.

1. Purpose

A commitment to creating a positive impact for society, the environment, or stakeholders beyond shareholders, written into your governing documents, not just your marketing.

2. Accountability

Leadership is expected to weigh the effects of business decisions on team members, customers, community, and environment, not just financial return. We call this the Triple Bottom Line: People, Planet, and Profit.

3. Transparency

Most states require some form of public reporting on how the business is pursuing its stated purpose. See, for example, Oregon’s Annual Benefit Report.

Oregon’s requirements

Oregon calls this status a benefit company, and both LLCs and corporations can elect it. To qualify:

Your articles of incorporation or organization must include the required benefit company language (citing Sections 1 to 11 of chapter 269, Oregon Laws 2013)
Corporations must designate at least one benefit governor on the board
You file or amend with the Oregon Secretary of State, Corporation Division, with a $100 fee
Every year, you file an Annual Benefit Report showing how the business supported People, Planet, and Profit. Members of the BCFG community get guidance in writing theirs

Most other states follow the same purpose/accountability/transparency framework, though the exact filing steps differ. If you’re an Oregon business, our full Oregon Benefit Company guide walks through this in more detail.

Learn About Oregon Benefit Companies

Ready to learn more?

Learn more about becoming a benefit corporation and how benefit company requirements work in Oregon.