Utah Benefit Corporation Support Center

Interesting Links:

P3 Utah: Benefit LLC Press Information - April 18 2017
Bill Clark's May 2016 presentation on the benefit corporation mechanism and national trends
SUMMARY and details of all May 23/4 2016 second anniversary  benefit corporation events

O-Town KItchen founders

Nestor Robles and Issac Farley and co-founders of O-Town Kitchen,  a social enterprise benefit corporation that is making delicious solutions to serious problems. 

Overview

Benefit Corporations, first established in Maryland in 2010, are the first form of businesses in the U.S. to formally incorporate the triple bottom line value system in their formation and operations. In 27 states, these businesses are required by law to create a material positive impact on society and the environment and to meet higher standards of accountability and transparency.  P3 Utah was instrumental in bringing this law into Utah and continues to support excellence in the operation of these groundbreaking businesses.

Meet the Original Utah Benefit Corporations
Representatives of 10 of the 13 benefit corporations registered on May 13, 2015 “Effective Day” in the Gold Room at the Utah State Capitol building. Photo courtesy of David Schmenk.

Utah’s 30 benefit corporations (as of April 20, 2016) voluntarily hold themselves to the highest standards set by businesses in the U.S. Benefit corporations:

  1. Have a corporate purpose to create a material positive impact on society and the environment;
  2. Are required to consider the impact of their decisions not only on shareholders but also on workers, community, and the environment; and
  3. Are required to make available to the public an annual benefit report that assesses their overall social and environmental performance against a third party standard.

P3 Utah offers technical assistance to its members so that LLCs and sole proprietorships can emulate this example without changing their form of registration.  Members of P3 Utah have access to sample benefit corporation annual reports. Contact us if you have questions about establishing a Utah Benefit Corporation or adopting these standards to your form of business.

Utah’s Law

Register a benefit corporation at the Utah Division of Corporations.  Staff are pleased to provide assistance with converting existing corporations into benefit corporations or establishing new ones. Local: 801-530-4849 Toll-Free: 1-877-526-3994 corpucc@utah.gov

The distinction between nonprofit certified B Corps and state registered benefit corporations

Certified B Corp is a certification available to all types of businesses (LLCs, sole proprietorships, corporations, etc.) in all 50 states and around the world.  The certification process, managed by the nonprofit B Lab, includes verification of attainment of a designated point threshold in an online self-assessment and ongoing payment to maintain certification status. Benefit corporation is a U.S. legal status for the corporation form of business that is recognized by 26 states and the District of Columbia.  State registration of a benefit corporation does not require any interaction with B Lab.  B Lab led creation of the national model legislation and continues to support and track state statute adoption of the legislation. Benefit corporations are required in all states to issue an annual benefit report according to a third party standard.  The same self-assessment tool that is maintained by B Lab for use in B Corp certification can also be used, without charge, as a qualifying third party standard for the benefit corporation annual benefit report in U.S. states. Utah Law Overview What it does:

  • Creates a new voluntary corporate form that allows businesses to consider other factors in addition to profit, such as the community and the environment.
  • Requires owners to report annually on material positive benefits to the community and the environment.
  • Requires high shareholder agreement, 2/3 shareholder vote, to adopting the new form or to move away from new formIncludes existing law’s dissenters’ rights for those that do not agree.
  • Provides additional needed protection for new impact investment revenue to flow into Utah businesses.

What it doesn’t do:

  • No cost to the state, it simply is another optional business form.
  • No tax benefits, benefit corporations are either C corps or S corps under the tax law like regular Utah domestic or foreign corporations.
  • No government intrusion on how a business should operate, allows businesses to operate in the free market.
  • No impact on existing businesses.

More information about benefit corporations National Benefit Corporation Information Center at B Lab

Active Utah Benefit Corporations as of January 25, 2017

Our information comes from conducting business entity searches of the Utah Division of Corporations website.

ANAHUAC CORP
BAKKER BOTANICAL INC
BRIDGENOSIS, INC.
ECOWANG INC
ESSENTIAL LENDING, INC.
FIBONACCI MEDIA CO.
FIDUCIAN, INC.
FLARE CONSULTING, INC.
FOSTER THE CHILDREN
GIBBS M. SMITH, INC.
IMPACT HUB SALT LAKE, INC.
INTERWEST PAPER, INC.
LE CROISSANT, INC.
LITTLE CITY, INC.
MYNT SOLAR CO
ONCHENDA OPEN GLOBAL FOOD COOPERATIVE, BENEFIT CORPORATION
O-TOWN KITCHEN
POSITIVE VOICES, INC.
PRO POLYMERS, INC.
PRO. BALER SERVICES, INC.
RYTE, INC.
SEEDBOX, INC.
STATE OF GRACE LIVING, BENEFIT CORPORATION
SUSTAIN 3, INC.
TAC EDUCATIONAL SERVICES INC.
TNT TRUCKING SCHOOL INC
UNDERFOOT FLOORS, INC.
WUAJIRO INC
WYLDER INC
YUDA BANDS BENEFIT COMPANY
ZULOO , INC.