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What’s a Public Benefit Corporation?

public benefit graphic

What’s a Public Benefit Corporation?

The Public Benefit Corporation, or PBC, is a newer type of entity that’s gotten a lot of buzz in the last few years. The PBC differs from a standard corporation in that it exists to serve a purpose beyond maximization of profits for its shareholders. This can be a good option for civic-minded entrepreneurs, or for companies that want to serve the public without going the nonprofit route.

The PBC is a very new structure, and many states have yet to recognize it as a legal entity. Maryland passed the first law recognizing PBCs in 2010, and other states have since followed. One high-profile PBC is Method, a manufacturer of soap and other cleaners, which focuses on environmental sustanability when producing its products. A standard c-corporation would be limited in pursuing this goal, since the corporation’s highest duty is to produce maximum return for its shareholders.

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