Entrepreneurs in Louisiana often find themselves debating which legal structure their businesses should take. There are a number of options, each with their own benefits and drawbacks. Although it may seem like a relatively simple consideration to make, the ramifications of this choice can be resounding. This is why individuals need to thoroughly analyze their options before making a decision.
One of those business structure options is the benefit corporation, also referred to as a B-Corp. This type of corporation is different from other corporations in a number of ways. Chief amongst them is that they are beholden to stockholders not only to turn a profit, but also to provide some sort of public benefit. This means that accountability and transparency make be handled differently for a benefits corporation.
Another reason some choose to pursue this legal structure is to solidify their mission. By presenting itself as promoting the public good, a benefit corporation can generate a lot of good will amongst its consumers. This cannot only drive awareness of particular issues that affect the public, but also generate revenue the promote visibility. Of course, since these corporations are meant to benefit the public, there are sometimes more stringent reporting standards that must be met, showing how the business is contributing to the public good.
The benefit corporation is just one of the many legal structures that a business can take. The choice of legal structure isn’t one to be made lightly, considering that it can affect taxation and liability, amongst other important matters. Therefore, those who are thinking about business formation and planning should think about discussing the matter with an experienced business law attorney. One of these legal professionals can help provide guidance so that one’s business interests are furthered to the fullest extent possible.