Partner
San Francisco, CA
California Benefit Corporations
California Benefit Corporations
What makes a benefit corporation different?
Purpose: creates a material positive impact on society and the environment, taken as a whole
Accountability: obligates itself to consider not just profits but also environmental and social factors in its actions and operations
Transparency: reports annually on its operations including environmental and social performance using independent, third-party standards
How can my company convert to a California benefit corporation?
Corporations: Existing corporations formed in California or any other state may convert upon approval of at least 2/3 of shareholders.
Other Business Entities: Existing limited liability companies, limited partnerships and general partnerships formed in California or any other state may convert upon approval of at least 2/3 of the holders of every interest in the entity entitled to receive a distribution from the entity.
When can I form or convert to a California benefit corporation?
Existing corporations formed in California or any other state may convert upon approval of at least 2/3 of shareholders. Existing limited liability companies, limited partnerships and general partnerships formed in California or any other state may convert upon approval of at least 2/3 of the holders of every interest in the entity entitled to receive a distribution from the entity.
The California Secretary of State began allowing formation of California benefit corporations on January 3, 2012.