B Corporation, or Benefit Corporation, is a type of company that is legally required to consider the impact of its decisions not only on shareholders but also on society and the environment, aiming to balance profit with social and environmental goals.
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Last Updated: January 6, 2026
A certified B Corp is a corporation that voluntarily meets stringent standards for social and environmental impact. The B Corporation business definition means a company qualifies for B Corp status through B Lab’s assessment program.
The nonprofit organization B Lab certifies companies as B corporations. To gain such certification, a company must meet high performance, accountability, and transparency standards. To meet the definition of a B corporation, the company must complete the B Impact Assessment with a score of 80 points or higher. B Lab’s assessment holistically measures the company’s impact across five categories: governance, workers, community, the environment, and customers. In addition, as a B Corp, the business owners must make a legal commitment to be accountable to all stakeholders, not just shareholders.
The primary B corporation advantages include industry leadership and support. B Corp certification requires a business owner to monitor their company’s impact beyond the immediate shareholders. Thus, B Corps are business leaders in the movement for economic system change.
B Corp certification allows a company to foster trust among its customers, communities, and suppliers. Also, B Corp status can help attract and retain employees and mission-aligned investors. Finally, B Corps are inherently focused on continuous improvement, contributing to their long-term resiliency.
B Corp certification isn’t for everyone. The certification process is detailed and stringent. It requires continuous planning, additional focus, and paperwork from the business owners. In addition, B Corp owners must be able to manage people and profit in addition to their B Corp purpose.
B Lab grants B Corp certification to qualifying companies. In addition, they encourage applicants to become benefit corporations if available in their locality. Currently, over 40 jurisdictions have laws allowing a benefit corporation to register as a legal entity. Some states provide other forms for a limited liability company wanting to embrace a beneficial purpose.
Ordinarily, when a business registers as a corporation (“C Corp”), the board owes a duty to the shareholders to maximize profits. But when a company registers as a benefit corporation, the company can legally pursue a business purpose that isn’t focused on profit (it can still generate a profit, but that’s not the sole purpose of the entity). The benefit corporation’s owners continue as corporate shareholders for the purposes of liability and taxes.
Therefore, while a benefit corporation can receive B Corp certification, it isn’t required. If a particular state offers benefit corporations, a company’s business purpose could be to support sustainability or community well-being. However, it’s up to the shareholders to hold the company accountable for its promises if it isn’t verified as a B Corp.
Here’s a quick list of some well-known B corporations:
Some of these companies registered first as benefit corporations in their state. Then, they later completed the B Impact Assessment because they felt the B Corporation status offered additional benefits. Others started with B Corp certification.
Related: Business with benefits: The world’s most famous B corp companies.
B corporations can help improve the world. Whether a company pursues the stringent B Corp certification or just registers as a benefit corporation with the state, a company can make a difference.
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Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.
Written by ZenBusiness Editorial Team
The ZenBusiness Editorial Team has more than 20 years of combined small business publishing experience and has helped over 850,000 entrepreneurs launch and grow their companies. The team’s writers and business formation experts are dedicated to providing accurate, practical, and trustworthy guidance so business owners can make confident decisions.
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