A Benefit Corporation is one in which the purpose of the business is to create a benefit to the general public. This purpose is in addition to the purposes provided in Section 206 of the Corporations Code. Under that particular section, a corporation can be formed to serve any business activity not prohibited by law, other than Banking Law or Professional Corporation.

To form a Benefit Corporation, the Articles of Incorporation must include a statement with the following language, “This corporation is a benefit corporation.” Further, the Articles of Incorporation for a benefit corporation may identify one or more specific public benefits that shall be the purpose or purposes of the benefit corporation. The Articles of Incorporation must then be filed with the California Secretary of State and accompanied by a fee of $100.

For further information on business formations and more please contact the Costa Mesa Business Lawyers at Yanez & Associates at 714-665-8322. We offer a free initial consultation of 60-minutes. Call today to schedule a consultation with a lawyer at our firm.