Before we even dive into what a “B corp” is, we need to talk about terminology. Like a C corps or an S corps, people are often referring to a “benefit corporation” when they say “B corp.” But B corp is actually different from a benefit corporation, although they’re related.
A benefit corporation is a type of formal legal business structure, like a C corp or S corp. In addition to making a profit, shareholders hold benefit corporations responsible to contributing in some way to the public good. In some states, benefit corporations are required to produce proof that they’re contributing to the public good. They’re taxed the same way as C corps, which means they’re subject to double taxation.
Benefit...