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BENEFIT LLCS: WHAT THEY ARE & HOW TO BECOME ONE

WHAT IS A BENEFIT LLC?

  • A Benefit LLC is an optional form of state business registration with no tax consequences.
  • Benefit LLCs strive to generate positive social and environmental benefits and make an annual report of those benefits available for review.
  • Benefit LLCs consider factors beyond profit in making decisions, such as customers, employees, the community, the environment and the future.

WHAT ARE THE REQUIREMENTS OF BECOMING A BLLC?

  •  You must generate positive social and environmental benefits and summarize these annually in a report to the state. (P3 Utah can help you with the report.)
  • You must consider multiple stakeholders when making decisions, including: employees, customers, community, the environment, and the future.  

WHAT ARE SOME OF THE PERKS TO BECOMING A BLLC?

  • Stand out above the competition
  • Attract younger employees
  • Expand customer loyalty & market share
  • Better attract & protect impact investments
  • Great option for social enterprises
  • Protect owner values when transferring to new owners
  • Support & benefit from the larger purpose-driven business movement 

HOW DO I CONVERT TO A BLLC?

We're glad you're interested in becoming a Benefit LLC, as this is an opportunity to reshape business into what it should be: for people, the planet, and a profit. We're proud that Utah is the 4th state to offer this to businesses in the U.S. The effective date of the Benefit LLC Legislation is May 8, 2018. Make sure you get started now, so that you will be recognized as one of the first to blaze the trail as a business leader in Utah's economy.

FOR YOUR CONVENIENCE, we have compiled a downloadable & printable filing guide, as well as Utah's official registration form, that you can access below. If you have any questions regarding registration as a Benefit LLC, please contact Kathy Berg at kberg@utah.gov OR by phone at 801-530-6216. You can also access all registration forms HERE.

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