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 an Oregon Benefit Company

Benefit Corporation leaders gathering at Happy Hour for Good.

Oregon doesn’t use the term “benefit corporation.” State law calls it a benefit company, and both LLCs and corporations can elect it. Here’s the full process, start to finish.

Step 1: Understand the why and the how

Benefit company status gives your business a legal framework for weighing team members, customers, community, and environment alongside shareholders what we call the Triple Bottom Line: People, Planet, and Profit. It’s a legal status, not a certification.

Step 2: Run the preliminary assessment

Before filing anything, use a preliminary assessment to see if your business is a good candidate and is purpose already central to how you operate, and are you ready to take on an annual reporting obligation?

Step 3: File the right paperwork

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 corporations check “Benefit Company” under Optional Provisions (#8); existing corporations file the equivalent amendment
Corporations must establish a board of governors and may designate at least one member as a benefit governor.

File with the Oregon Secretary of State, Corporation Division, 255 Capitol St. NE, Suite 151, Salem, OR 97310-1327, with a $100 fee.

Step 4: Know your annual reporting obligation

Every Oregon benefit company files an Annual Benefit Report each year, showing how the business supported People, Planet, and Profit. BCFG members get help putting theirs together.

Step 5: Decide on certification

Benefit company status and certification are separate. If you want independent, third-party verification that you’re living up to the commitment, BCFG’s certification evaluates businesses across eight standards through an assessment and an interview once you clear 70%. It costs $299 for businesses with five or fewer full-time employees. Achieving certification earns you “Benefit Corporations for Good Certified” status.

Step 6: Keep filing, every year

Benefit company status isn’t a one-time box to check the Annual Benefit Report is due every year for as long as you hold the status.

If you’re outside Oregon

Most other states have a similar benefit corporation structure, with their own filing specifics, start with your Secretary of State’s office.

Ready to go further? Learn what BCFG certification actually evaluates, or see Benefit Corporation Requirements for the broader legal picture.

Last reviewed 10/26

Related guides

What Is a Benefit Corporation? — Learn how benefit corporation status works and why businesses choose it.
How to Become a Benefit Corporation — Review the broader steps involved in establishing benefit corporation status.
Benefit Corporation Requirements — Understand the legal and reporting requirements that may apply.
Benefit Corporation Annual Report — Learn about annual benefit reporting and what the report covers.