A Benefit Corporation or a “B-Corp.” is a private enterprise that creates a public benefit by allowing businesses to be profitable while considering the welfare of society and the environment. Benefit Corporations require businesses to make their practices transparent to the public. Becoming a Benefit Corporation has certain requirements, but it is mostly a three-step process. First, a company must complete a “B Survey” and receive a composite score above 80 points (out of 200) to be certified as a Benefit Corporation. Then, a company’s governing documents must be revised to include the interests of all stakeholders and shareholders. Finally, a company must sign a document describing the benefits and duties of becoming a Benefit Corporation, along with a “Declaration of Interdependence” symbolizing the company’s commitment to the Benefit Corporation.
Florida is now one of twenty-six states that allow “B-Corporations.” In Florida, if you are creating a new corporation and want to become a B-Corp., the articles of incorporation must state that the corporation is a benefit corporation under Florida Statute 607.603. However, if you are already established as a corporation, but want to change into a Benefit Corporation, the articles of incorporation must be amended to include a statement that the corporation is a benefit corporation under Florida Statute 607.604, but the amendment must be adopted by the minimum status vote. A Benefit Corporation’s Annual Report must be made public and available, free of charge, to anyone that requests it.
If you are interested in establishing a Benefit Corporation, or you want to change an existing corporation to a Benefit Corporation, schedule a consultation with the experienced attorneys at EPGD Business Law today, located in beautiful Coral Gables. Call us at (786) 837-6787 or e-mail us to schedule a consultation.