Creating Mission that Matters

Benefit corporations allow you to create a legal governance structure for your business that do just that. Being a benefit corporation means that you can operate your business with a social or environmental purpose and helps you communicate your business’s impact through annual reporting. Benefit Corporations merge our state’s entrepreneurial drive with its humanitarian mindset.

Who Should be a Benefit Corporation?

Benefit Corporations provide flexibility for socially/environmentally conscious companies that want to do good on their own terms. This includes businesses that:

Promote environmental stewardship and sustainability.

Use renewable or low-impact sources of energy whose marginal cost may be higher to the corporation than other options.

Provide certain “quality of life” benefits to employees that it considers central to the corporate identity.

Create a taxable affiliate of an existing nonprofit corporation whose social purposes are consistent with the nonprofit’s mission

Commit to donating a certain percentage of the corporation’s profits to charity

The types of existing businesses that would become benefit corporations are:

  • owner-managed enterprises or startups
  • venture-funded startups
  • late stage privately-held companies
  • wholly owned subsidiary of a public companies
  • publicly-traded enterprises

How do Benefit Corporations help Connecticut?

ct soc ent statePart of what makes Benefit Corporations good for Connecticut is that it provides flexibility for business to determine what beneficial behavior is applicable to it. Ultimately, this gives much more freedom to the directors of the corporation to make decisions beyond simply providing shareholder economic value.  They will be able to make decisions that provide benefit and value that most impact their community.

Connecticut’s benefit corporation statute also allows for the option legacy preservation, providing benefit corporations with the opportunity to preserve their company’s status as a benefit corporation in perpetuity, despite changes in company leadership or ownership. In other words, this voluntary provision locks in the company’s social mission as a fundamental part of its legal operating structure.