Benefit Corporation vs. B Corp
Two terms that sound almost interchangeable, but aren’t: benefit corporation and B Corp.
Benefit corporation = legal status. B Corp = certification.
Here’s the short version, and why it matters for your business.
What is a benefit corporation?
A legal business structure or status created under state law, giving a for profit business a framework to consider its impact on team members, customers, community, and environment, not just shareholders, and often described as the Triple Bottom Line: People, Planet, and Profit. Requirements vary by state. In Oregon, it’s called a benefit company, and both LLCs and corporations can elect it by filing the required language with the Secretary of State.
What is a B Corp?
A Certified B Corporation has earned certification from B Lab, a nonprofit that evaluates companies against its own standards and requires certain legal accountability commitments.
Can you be both?
Yes. They’re not mutually exclusive. A company can hold benefit company status and pursue B Corp certification. The legal structure is the commitment; certification is the proof.
Does one automatically give you the other?
No, in either direction. Electing benefit company status doesn’t grant B Corp certification. And B Lab’s legal requirements vary by jurisdiction and structure, so being a B Corp doesn’t automatically mean you hold benefit corporation status everywhere you operate.
Where does BCFG fit?
There’s a third piece worth understanding: third party certification built specifically for small businesses. BCFG isn’t a legal structure. It’s an independent certification, evaluating businesses across eight standards through a 60 question assessment and interview. We’re one of four certification standards recognized by the Oregon Secretary of State, and the only one based in Oregon, with 100+ businesses certified across 13 states and one Canadian province.
That makes BCFG different from both benefit corporation status and B Lab’s B Corp certification, built around the same question B Corp asks: can an independent group verify you’re living your values? But it’s sized and priced for a small, purpose driven business rather than a national brand.
Why the distinction matters
Benefit corporation status asks: how is our business legally structured? Certification asks: can someone independent verify we’re actually doing this? Different questions, worth answering separately.
Want to see how the certifications compare directly? See BCFG certification or read our guide to Benefit Corporation for Small Business.
Related guides
What Is a Benefit Corporation? — Learn what defines a benefit corporation under state law.
Benefit Corporation vs. Traditional Corporation — Compare benefit corporations with traditional corporations.
Benefit Corporation Certification — Understand what certification verifies beyond legal business status.
BCFG Certification Standards Explained — Discover the standards BCFG uses to evaluate certification applicants.