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What is a Benefit Corporation?

Last updated Friday, February 12, 2021

 

Benefit corporations, governed by NRS Chapter 78B, are for profit entities that consider the society and environment in addition to fiduciary goals in their decision-making process, differing from traditional corporations in their purpose, accountability, and transparency. The purpose of a benefit corporation is to create general public benefit, which is defined in 78B.040 as “a material positive impact on society and the environment, taken as a whole, as assessed against a third-party standard, from the business and operations of a benefit corporation.”

 

How do I register my corporation as a benefit corporation?

In its articles of incorporation, or through an amendment, a benefit corporation states that it is a benefit corporation and identifies one or more specific public benefits as an additional purpose, such as, though not limited to, the following examples:

• Providing low-income for underserved individuals or communities with beneficial products or services.
• Promoting economic opportunity for individuals or communities beyond the creation of jobs in the ordinary course of business.
• Preserving the environment.
• Improving human health and promoting the arts, sciences or the advancement of knowledge.

 

 

 

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Revised February 12, 2021 8:03 AM

 

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