Is your startup equally interested in do-goodery and money? If yes, consider registering your company in Arizona, because Gov. Jan Brewer just signed Senate Bill 1238 into law. The legislation allows for a new business category in The Grand Canyon State – Benefit Corporations.
Arizona Benefit Corporations: Between Profit Corps. And Non-Profits
Arizona’s new business class is perfect for companies that want to be a positive force in their communities –social or environmental, big or small – while at the same time enjoying a healthy bottom line. In the simplest terms, the Arizona benefit corporation is a hybrid of a regular corporation and a charitable organization.
Tax Benefits Of An Arizona Benefits Corporation
Don’t, however, jump to conclusions and assume using the Arizona benefit corporation classification will save you money in taxes. In fact, on the face it won’t as the category is in the same tax bracket as a traditional corporation. That said, using the classification may put organizations in a favorable position for certain types of grants and endowments. So, what you may not save in taxes, you may gain via funding avenues traditionally slated for non-profits.
Other Characteristics of the Arizona Benefit Corporation
Other features of the Arizona benefit corporation business category:
- Companies that choose to register as a benefit corporation in Arizona must include an update on the group’s “public good initiatives” in their annual report.
- Arizona benefit corporations must consider how their operations impact the interests of customers, employees, community and investors. (In a traditional corporation, the investors’ interests are the primary concern.)
Arizona Is Pioneer Of This New Business Model
Arizona is one of the first states to adopt the benefit corporation business classification. B Lab, “a non-profit organization dedicated to using the power of business to solve social and environmental problems” is working nationally to promote the benefit corporation agenda. B Lab hopes that marrying the business world the charitable world will produce the greatest amount of good. They also believe the new benefit corporation business registration will help consumers to differentiate between good marketing and genuine good intentions.
Arizona Business Attorney For Startups & Established Businesses
If you want to learn more about the Arizona benefit corporation business registration, contact Kelly Warner Law. We handle business law, compliance, litigation and registration issues for startups and established businesses.