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.

How to Become a Benefit Corporation

Benefit Corporation leaders gathering at Happy Hour for Good.

If your business already operates around more than profit, becoming a benefit corporation or in Oregon, a benefit company is how you put that commitment into your legal structure.

The process varies by state, so start by understanding the law where you're incorporated. Here's how it works in Oregon, where BCFG is based.

Understand what you're committing to

Benefit company status isn't a certification it's a legal designation. It gives a for-profit business a framework for weighing the interests of team members, customers, community, and the environment alongside shareholders. And it's why a benefit company is often referred to as the pillar of the triple bottom line, or people, planet, and profit.

Confirm the business model fits

Ask yourself: Is purpose already central to how we operate? Are we willing to report on our impact every year? Do we want that commitment to outlast a change in leadership or ownership? If yes, benefit company status formalizes what you're likely already doing.

File the right paperwork

In Oregon, both LLCs and corporations can elect benefit company status:

New LLCs check the “Benefit Company” box under Optional Provisions (#9) on formation
Existing LLCs file an amendment stating the entity “is a Benefit Company, subject to Sections 1 to 11 of chapter 269, Oregon Laws 2013”
New and existing corporations follow the equivalent process, and must establish a board of governors with at least one designated benefit governor

File with the Oregon Secretary of State, Corporation Division, along with a $100 fee.

Most other states have similar steps.

Know your reporting obligation

Every Oregon benefit company must file an Annual Benefit Report showing how the business supports People, Planet, and Profit. That’s the accountability side of the designation it’s not a one-time box to check. Members of the BCFG community get help in writing their reports.

Decide on certification

Benefit company status and third-party certification are two different things. Legal status says what you’ve committed to; certification is independent verification that you’re living it.

That’s where BCFG comes in. Our certification is a 60-question assessment across eight standards, plus an interview once you clear 70%. It costs $299 for businesses with five or fewer full-time employees built to be accessible for teams our size, not priced for a national brand’s compliance department.

Can a small business become a benefit corporation?

Yes, benefit corporation laws aren’t limited to large companies. If anything, the model fits small businesses especially well, since many already operate with a strong sense of purpose. Becoming a benefit corporation gives that purpose a legal framework and a more formal, accountable shape.

For small businesses that want to demonstrate they actually live their values, third-party certification adds another layer of accountability. That’s where BCFG comes in.

Explore Benefit Corporation Resources

Ready to learn more?

See the why and the how for becoming an Oregon Benefit Company, or learn what criteria BCFG certification is based upon.