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Public benefit corporations, benefit corporations, and other "social hybrid" organizations
Q1. What is a public benefit corporation?
A1. In Colorado, a Public Benefit Corporation is organized as a for-profit corporation or domestic cooperative. Other states may call these "benefit corporations." They are managed in a manner that balances the shareholders’ interests, the best interest of those materially affected by the corporation’s conduct, and the specific public benefit(s) identified in its articles of incorporation. Other entities, such as limited liability companies or even other corporations, may designate a similar purpose in their organizational documents.
Q2. Do for-profit public benefit corporations (benefit corporations) or other "social hybrid" organizations need to register?
A2. If a public benefit corporation (PBC), benefit corporation, or other entity includes a charitable appeal in its advertising, states that proceeds from sales of its product will benefit a charitable purpose, or solicits contributions in any other manner, it may need to register as a charitable organization under the Colorado Charitable Solicitations Act (CCSA). Consult with your legal counsel if you are unsure whether the CCSA applies to the activities of your organization and requires it to register.