Common Misconceptions

Benefit Corporation Basics

Misconception: Benefit corporations are non-profits or hybrid entities.
Misconception: Benefit corporations must be certified or audited
Misconception: Benefit corporations must become Certified B Corps
Misconception: Benefit corporations aren’t profitable
Misconception: Benefit corporations are only small companies or start ups
Misconception: The reporting requirements for benefit corporations are onerous.
Misconception: Benefit corporations and Certified B Corps are the same thing

Benefit Corporations & Investors

Misconception: Benefit corporations have trouble going public
Misconception: Being a benefit corporation removes or limits shareholder rights
Misconception: Benefit corporations are only small companies or start ups
Misconception: Benefit corporations have trouble raising money

Benefit Corporations & the Law

Misconception: Benefit corporations get special tax treatment
Misconception: The benefit corporation structure is unnecessary
Misconception: Benefit corporations are non-profits or hybrid entities.
Misconception: The Constituency Statute is sufficient.

Benefit Corporations & the Legislature

Misconception: The benefit corporation structure is unnecessary
Misconception: Benefit corporation legislation is designed for left-wing companies
Misconception: Benefit corporation legislation increases regulation.
Misconception: Benefit corporations get special tax treatment