B corporationn.
Reviewed by Owen Hathaway, AttorneyUpdated June 1, 2026A for-profit entity that legally commits to pursuing a public benefit alongside profit. (Note: the legal benefit corporation differs from the private 'B Corp' certification by B Lab.)
A benefit corporation (often loosely called a B corporation) is a for-profit entity whose governing law allows or requires directors to pursue a stated public benefit alongside shareholder profit, with accountability and reporting on that mission. It allows a company to pursue its purpose without breaching its duty to maximize profit.
This statutory benefit corporation should not be confused with Certified B Corp status, a private certification from the nonprofit B Lab. A company can be one, the other, both, or neither.
Colorado authorizes public benefit corporations under its corporations code (C.R.S. Title 7, Article 101.5). Wyoming offers benefit corporation status under its statutes (Wyo. Stat. 17-19-1804). Both sit between a traditional for-profit and a nonprofit and are distinct from 501(c)(3) tax-exempt organizations.
Related terms
- articles of incorporationThe document filed with the state that legally creates a corporation or nonprofit corporation. (LLCs file articles of organization instead.)
- 501(c)(3)The federal tax status for charitable nonprofits. These entities are exempt from income tax, and sometimes certain state-level taxes, and are able to receive tax-deductible donations, in exchange for strict limits on their activities.