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by rchowe
1080 days ago
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What always bothered me about "B corps" was that the name suggests something analogous to C corp or S corp, which in most states is not actually the case. I think my home state of Massachusetts does it well and labels them as "Public Benefit Corporations" instead of "B corps". |
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C/S corporation status are two types of tax status for companies, whether regular corporations, benefit corporations, or even LLCs.
Benefit corporations are a type of corporation provided for by state law that has society and the environment as inherent beneficiaries of the company, along with the shareholders.
B corporations are a label B Lab (itself a not-for-profit corporation) gives to companies that comply with its ESG goals. It has nothing to do with its tax status or its legal obligations. B Labs requires amending the bylaws, but legally the shareholders are still supreme and there's nothing preventing the changes from being undone at any time.
I realize that that makes the name even more misleading though lol