Environmentally sustainable or socially conscious companies in Oregon can now register as “Benefit Companies.” On the first day of the new law, the number of companies that enrolled exceeded projections.
Benefit companies, or B-Companies, are for-profit businesses that offer environmental or social benefits. The Oregon legislature passed House bill 2296 last year allowing B-Company registrations to begin January 2. Secretary of State Spokesman Tony Green says Oregon is the only state that allows both corporations and limited liability corporations to register as B-Companies.
Green- “Mostly you’ll see the discussion about B-Corps, or Benefit Corporations because in other states, it’s only corporations that allowed to do this, so we’re different in that respect. We allow more organizations, more companies to get this status.”
Green says under the new law, B-Companies don’t get any tax breaks. They do obtain legal protection to create value for society, and are not obligated to shareholders. 29 businesses enrolled on the first day in Oregon.