Benefit Corporations

Today we are witnessing the rise of what many call "socially responsible enterprises.”  Allen & Pinnix, P.A. is recognized nationally not only for representing these hybrid social enterprises but also for providing professional education to the national corporate community regarding their formation and operation. These entities, also called benefit corporations, enable entrepreneurs to develop social enterprise business models without having to do so under the IRS’s traditional non-profit designation.

This expansion of impact investment vehicles springs from a recognition that businesses often are looking for an opportunity both to serve the public interest and to make a profit for its shareholders or economically enhance its members wellbeing.  New corporations with such a focus written into their charters have been attracting billions of dollars in socially responsible investments while making a genuine social impact at the same time.

Careful guidance in the critical stage of formation is essential.  Firm members have years of experience helping clients determine the benefits of operating as a tax-exempt nonprofit, an L3C, or a benefit corporation.  In addition, they are prepared to advise clients on the availability of funding and investment opportunities.