Benefit company option
The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
BENEFITER / 50-STATE RESEARCH
See which states offer a benefit corporation, what it costs, how much paperwork it needs, and what protections company leaders may have. Compare the rules and choose what matters most to you.
Primary-source review updated October 11, 2026 · 50 states · state-specific laws, taxes and conversion requirements
Compared for a new private company. Personal protections have limits, and campaign laws still apply. Yearly minimum taxes now affect the cost score. Income and receipts taxes depend on business activity and are explained for every state.
WHAT WE COMPARE AGAINST
We reviewed each state separately. These are the most common features in the reviewed laws—not a law that all states share. Every state below explains where it follows this starting point and where it differs.
Among the 41 benefit-variant states: 38 require annual reports, 31 require an outside framework, and 33 use a two-thirds default exit gate. Across all 50 states, 34 have director-only ordinary protection in this small-company scope. These are shared features, not identical laws.
The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
“Charter” means the company’s founding document. “Officer” means a company executive. A “derivative” claim is a shareholder’s claim on the company’s behalf. Monetary protection can limit certain money awards; it does not prevent every lawsuit.
UNDERSTAND THE NUMBERS
Some percentages say who can bring a claim or how many votes a change needs. The score helps you compare states for your company’s needs.
Some lawsuits about a company’s public-benefit mission can only be brought by people who own enough shares. The required amount depends on the state and the kind of claim.
Delaware example: plaintiffs must own, individually or together, at least 2% of all outstanding shares when filing a balancing-duty action. With 1,000,000 outstanding shares, that is 20,000 shares. Listed companies have a separate alternative; other procedural rules still apply.
Nevada is different: its shareholder route uses 2% of a class or series, held at the challenged conduct. Directors, the company, qualifying parent owners and authorized designees have other routes. A 5% parent-equity rule measures the parent entity.
Delaware §367 ↗ · Nevada §78B.190 ↗
A higher shareholder minimum narrows that claimant route; it does not erase other claims or guarantee protection.
This percentage tells you how many shareholder votes a company change needs. It counts voting power, so one person with many shares can have more votes than another.
Nevada example: benefit-status changes generally require at least two-thirds of the votes entitled to be cast by the outstanding shares of each class or series, including otherwise nonvoting shares. If a class has 1,000 equal votes, at least 667 must approve. Each other class must separately meet its requirement; the articles may require more.
Some rules count all shares that can vote; others count votes actually cast. Becoming a benefit company and changing back can need different approvals. Check the rule for the exact change you want.
Needing more votes can help preserve the mission, but makes a future change harder. Read the rule for the specific change you want to make.
The score rewards the specific features in the state’s law. For example, Nevada covers officers as well as directors through a default liability rule. Delaware requires a charter clause, and its officer clause leaves company and derivative claims exposed. These earn different protection scores.
Costs matter too: Nevada’s $500 annual business license now counts alongside its report fee. Delaware’s franchise tax also counts. The operating assumptions appear below.
Each state shows the common starting rule, its actual rule, why it earned or lost credit, and the linked source. Equal points mean the same broad feature; exceptions can still be very different.
Choose what matters to you ↓ · Download the scores and reasons ↓
A score is a comparison guide. It does not promise protection from a lawsuit or tell you what the business will be worth.
THE COMPLETE STATE DIRECTORY
Open any state to see its rules, costs, required votes, exceptions and sources. Its score section explains the reasons in everyday language.
50 of 50 states · highest scores first by default · open a state for its rules, baseline differences, taxes and downloads
Status vote denominator is present-and-voting, unlike outstanding-share models. Automatic ordinary officer as well as director exculpation.
$35 / year, compared filings + minimum taxesLouisiana adds ordinary officer coverage and a default statutory liability rule. Automatic ordinary officer as well as director exculpation. Benefit enforcement names benefit director, not every director. Every board must have a benefit director; independence is excused for professional corporations.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 23 |
| Less paperwork | 12 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Louisiana: Mandatory general benefit plus optional specific benefits. Specific-benefit statutory list includes historic preservation and urban beautification. Corporate name must end with "A Benefit Corporation", optionally in parentheses.
Why this changes the score: Louisiana offers Benefit corporation.
Louisiana offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Louisiana: Automatic directors AND officers monetary exculpation against corporation/shareholders unless charter rejects/limits. Exceptions loyalty, intentional harm, unlawful distributions, intentional criminal violation; loyalty excludes care duties. Benefit-specific rule: Directors and officers have benefit-failure monetary protection and compliant-conduct protection. No express blanket company monetary bar identified in 12:1825; ordinary automatic director/officer protection is separate. The benefit director has additional liability protection except self-dealing, willful misconduct or knowing violation of law (12:1822(E)); this narrower exception-based protection does not excuse illegality.
Why this changes the score: Louisiana adds ordinary officer coverage and a default statutory liability rule. Automatic ordinary officer as well as director exculpation. Benefit enforcement names benefit director, not every director. Every board must have a benefit director; independence is excused for professional corporations.
Louisiana has an identified director monetary-protection provision in the compared scope, which earns this credit. Automatic directors AND officers monetary exculpation against corporation/shareholders unless charter rejects/limits. Exceptions loyalty, intentional harm, unlawful distributions, intentional criminal violation; loyalty excludes care duties.
Louisiana extends ordinary protection to officers, which earns officer-scope credit. Automatic directors AND officers monetary exculpation against corporation/shareholders unless charter rejects/limits. Exceptions loyalty, intentional harm, unlawful distributions, intentional criminal violation; loyalty excludes care duties.
Louisiana has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Louisiana has no separately credited benefit-specific monetary shield for company. Directors and officers have benefit-failure monetary protection and compliant-conduct protection. No express blanket company monetary bar identified in 12:1825; ordinary automatic director/officer protection is separate. The benefit director has additional liability protection except self-dealing, willful misconduct or knowing violation of law (12:1822(E)); this narrower exception-based protection does not excuse illegality.
Louisiana earns the benefit-specific credit for directors. Directors and officers have benefit-failure monetary protection and compliant-conduct protection. No express blanket company monetary bar identified in 12:1825; ordinary automatic director/officer protection is separate. The benefit director has additional liability protection except self-dealing, willful misconduct or knowing violation of law (12:1822(E)); this narrower exception-based protection does not excuse illegality.
Louisiana earns the benefit-specific credit for officers. Directors and officers have benefit-failure monetary protection and compliant-conduct protection. No express blanket company monetary bar identified in 12:1825; ordinary automatic director/officer protection is separate. The benefit director has additional liability protection except self-dealing, willful misconduct or knowing violation of law (12:1822(E)); this narrower exception-based protection does not excuse illegality.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Louisiana: Annual shareholder report within 120 days or with ordinary shareholder annual report; all reports public website/latest free copy if no website. Compensation/proprietary info redactable. 5% shareholder names included. No state benefit filing specified. Assessment rule: Annual social/environmental assessment against third-party standard required. Report/assessment need not be audited or certified by standard provider.
Why this changes the score: Louisiana: Annual; Required outside framework; no separate state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
Louisiana: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Louisiana: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Louisiana: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Louisiana requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Directors shall consider listed stakeholders; no priority required except as articles provide. Every benefit corporation board must include an independent individual benefit director (who may also serve as benefit officer); a professional corporation benefit director need not be independent. The benefit director issues an annual opinion on mission and duty compliance; any retained audit is optional.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Louisiana: Registry reporting: $35 per year on an annualized basis. Minimum tax/license used here: $0. Ordinary small active domestic C corporation, regular taxable period beginning in 2026, no Louisiana taxable profit after state adjustments. The repealed franchise charge contributes $0; annual-report fees and other operating taxes remain outside the figure.
Why this changes the score: Louisiana has a compared recurring floor of $35 per year, including $0 in identified minimum tax/license charges.
Louisiana has a compared recurring floor of $35 per year, including $0 in identified minimum tax/license charges. Ordinary small active domestic C corporation, regular taxable period beginning in 2026, no Louisiana taxable profit after state adjustments. The repealed franchise charge contributes $0; annual-report fees and other operating taxes remain outside the figure. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Louisiana: Becoming a benefit company: 2/3 present and voting per class/series. Benefit-law minimum vote for corporate entry/exit is 2/3 of shares PRESENT AND VOTING per class/series, plus other ordinary/article approvals; not 2/3 all outstanding shares. Changing back: 2/3 present and voting per class/series
Why this changes the score: Louisiana entry uses 2/3 present and voting per class/series; exit uses 2/3 present and voting per class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Louisiana: becoming a benefit company requires 2/3 present and voting per class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Benefit-law minimum vote for corporate entry/exit is 2/3 of shares PRESENT AND VOTING per class/series, plus other ordinary/article approvals; not 2/3 all outstanding shares.
Louisiana: changing back requires 2/3 present and voting per class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Benefit-law minimum vote for corporate entry/exit is 2/3 of shares PRESENT AND VOTING per class/series, plus other ordinary/article approvals; not 2/3 all outstanding shares.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Louisiana: Directors shall consider listed stakeholders; no priority required except as articles provide. Every benefit corporation board must include an independent individual benefit director (who may also serve as benefit officer); a professional corporation benefit director need not be independent. The benefit director issues an annual opinion on mission and duty compliance; any retained audit is optional. Disclosure: Annual shareholder report within 120 days or with ordinary shareholder annual report; all reports public website/latest free copy if no website. Compensation/proprietary info redactable. 5% shareholder names included. No state benefit filing specified. Enforcement: Corporation directly; derivative any shareholder, benefit director (not generic any director in this section), or charter/bylaw designee. No percentage threshold.
Why this changes the score: Louisiana requires public access to the report. Public benefit report discloses 5% owners. Benefit enforcement names benefit director, not every director.
Louisiana requires report access for people outside the company, so it earns public-access credit. Annual shareholder report within 120 days or with ordinary shareholder annual report; all reports public website/latest free copy if no website. Compensation/proprietary info redactable. 5% shareholder names included. No state benefit filing specified.
Louisiana: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Louisiana: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Louisiana makes a mission duty mandatory, so it earns this credit. Directors shall consider listed stakeholders; no priority required except as articles provide. Every benefit corporation board must include an independent individual benefit director (who may also serve as benefit officer); a professional corporation benefit director need not be independent. The benefit director issues an annual opinion on mission and duty compliance; any retained audit is optional.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Louisiana’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit mandatory stakeholder model; present-and-voting status denominator
Mandatory general benefit plus optional specific benefits. Specific-benefit statutory list includes historic preservation and urban beautification. Corporate name must end with "A Benefit Corporation", optionally in parentheses.
Directors shall consider listed stakeholders; no priority required except as articles provide. Every benefit corporation board must include an independent individual benefit director (who may also serve as benefit officer); a professional corporation benefit director need not be independent. The benefit director issues an annual opinion on mission and duty compliance; any retained audit is optional.
Annual shareholder report within 120 days or with ordinary shareholder annual report; all reports public website/latest free copy if no website. Compensation/proprietary info redactable. 5% shareholder names included. No state benefit filing specified.
Annual social/environmental assessment against third-party standard required. Report/assessment need not be audited or certified by standard provider.
Corporation directly; derivative any shareholder, benefit director (not generic any director in this section), or charter/bylaw designee. No percentage threshold.
Directors and officers have benefit-failure monetary protection and compliant-conduct protection. No express blanket company monetary bar identified in 12:1825; ordinary automatic director/officer protection is separate. The benefit director has additional liability protection except self-dealing, willful misconduct or knowing violation of law (12:1822(E)); this narrower exception-based protection does not excuse illegality.
Automatic directors AND officers monetary exculpation against corporation/shareholders unless charter rejects/limits. Exceptions loyalty, intentional harm, unlawful distributions, intentional criminal violation; loyalty excludes care duties.
Entry: 2/3 present and voting per class/series. Exit: 2/3 present and voting per class/series. Benefit-law minimum vote for corporate entry/exit is 2/3 of shares PRESENT AND VOTING per class/series, plus other ordinary/article approvals; not 2/3 all outstanding shares.
Ordinary: $35 / annual. Current Secretary of State schedule lists domestic/foreign corporate annual report $35. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Louisiana corporation income tax is a flat 5.5% for periods beginning on or after January 1, 2025; the previous graduated brackets are repealed. State taxable income and sourcing rules still determine liability. The corporation franchise tax is repealed for franchise-tax periods beginning on or after January 1, 2026. Its former minimum and capital-based charge must not be carried into a 2026-period comparison. Earlier-period tax obligations and the separate corporate annual report remain. LDR ties corporation-income filing to corporate tax classification and Louisiana-source income. Louisiana statute section 47:287.95 supplies allocation/apportionment and activity-specific sourcing rules. State incorporation and an out-of-state charter do not substitute for analyzing the actual Louisiana business and income. Compared yearly minimum addition: $0. Ordinary small active domestic C corporation, regular taxable period beginning in 2026, no Louisiana taxable profit after state adjustments. The repealed franchise charge contributes $0; annual-report fees and other operating taxes remain outside the figure.
Status vote denominator is present-and-voting, unlike outstanding-share models. Automatic ordinary officer as well as director exculpation. Public benefit report discloses 5% owners. Benefit enforcement names benefit director, not every director. Corporate name must end with "A Benefit Corporation", optionally in parentheses. Every board must have a benefit director; independence is excused for professional corporations. Corporation franchise tax repealed for periods beginning on or after January 1, 2026.
Primary-source findings with stated qualifications. Benefit statute retains references to pre-2015 corporate-law sections; interaction with 2015 Business Corporation Act should be confirmed in drafting. Selected statutory provisions; not a full case-law, charter or tax audit.
Annual shareholder benefit statement is mandatory, but public release and independent-standard reporting are optional. Do not equate third-party language in the purpose definition with a mandatory annual outside report.
$0 / year, compared filings + minimum taxesOklahoma adds ordinary officer coverage; the charter must elect the ordinary protection. Current ordinary charter exculpation includes officers but excludes every officer claim brought by or in the right of the corporation; 2026 legislation resolved the earlier duplicate-text conflict.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 22 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 9 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Oklahoma: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Oklahoma offers Benefit corporation.
Oklahoma offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Oklahoma: 2026 ch.217 (SB 2184) §26 reenacted the director-and-officer clause and §27 expressly repealed the competing director-only 2024 version. The shield requires a certificate provision. Officers remain exposed to corporate/derivative claims, and the misconduct/loyalty exceptions remain. Benefit-specific rule: Benefit shields distinguish disinterested compliant-duty conduct from benefit-outcome failure. Ordinary director/officer charter exculpation is governed by the consolidated 2026 §1006 text and its narrower officer scope.
Why this changes the score: Oklahoma adds ordinary officer coverage; the charter must elect the ordinary protection. Current ordinary charter exculpation includes officers but excludes every officer claim brought by or in the right of the corporation; 2026 legislation resolved the earlier duplicate-text conflict.
Oklahoma has an identified director monetary-protection provision in the compared scope, which earns this credit. 2026 ch.217 (SB 2184) §26 reenacted the director-and-officer clause and §27 expressly repealed the competing director-only 2024 version. The shield requires a certificate provision. Officers remain exposed to corporate/derivative claims, and the misconduct/loyalty exceptions remain.
Oklahoma extends ordinary protection to officers, which earns officer-scope credit. 2026 ch.217 (SB 2184) §26 reenacted the director-and-officer clause and §27 expressly repealed the competing director-only 2024 version. The shield requires a certificate provision. Officers remain exposed to corporate/derivative claims, and the misconduct/loyalty exceptions remain.
Oklahoma requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Oklahoma earns the benefit-specific credit for company. Benefit shields distinguish disinterested compliant-duty conduct from benefit-outcome failure. Ordinary director/officer charter exculpation is governed by the consolidated 2026 §1006 text and its narrower officer scope.
Oklahoma earns the benefit-specific credit for directors. Benefit shields distinguish disinterested compliant-duty conduct from benefit-outcome failure. Ordinary director/officer charter exculpation is governed by the consolidated 2026 §1006 text and its narrower officer scope.
Oklahoma earns the benefit-specific credit for officers. Benefit shields distinguish disinterested compliant-duty conduct from benefit-outcome failure. Ordinary director/officer charter exculpation is governed by the consolidated 2026 §1006 text and its narrower officer scope.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Oklahoma: Annual shareholder statement of objectives, standards and benefit success; public release, independent-standard reporting and periodic certification are optional under §1210. Assessment rule: General-benefit definition refers to assessment against a third-party standard, but §1210 makes using a third-party standard for the annual statement optional. Audit/certification is not required.
Why this changes the score: Oklahoma: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Oklahoma: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Oklahoma: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit. General-benefit definition refers to assessment against a third-party standard, but §1210 makes using a third-party standard for the annual statement optional. Audit/certification is not required.
Oklahoma: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Oklahoma has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Oklahoma: Registry reporting: $0 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic stock C corporation operating in Oklahoma with no Oklahoma taxable income after state adjustments: $0 ordinary corporate tax and no former franchise minimum. Excludes report/permit fees and other operating taxes.
Why this changes the score: Oklahoma has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges.
Oklahoma has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic stock C corporation operating in Oklahoma with no Oklahoma taxable income after state adjustments: $0 ordinary corporate tax and no former franchise minimum. Excludes report/permit fees and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Oklahoma: Becoming a benefit company: Two thirds of every class/series, including otherwise nonvoting shares. Model-style two-thirds each-class status/purpose protection. Changing back: Same minimum status vote.
Why this changes the score: Oklahoma entry uses Two thirds of every class/series, including otherwise nonvoting shares.; exit uses Same minimum status vote.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Oklahoma: becoming a benefit company requires Two thirds of every class/series, including otherwise nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Oklahoma: changing back requires Same minimum status vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Oklahoma: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual shareholder statement of objectives, standards and benefit success; public release, independent-standard reporting and periodic certification are optional under §1210. Enforcement: Corporation direct and specified derivative standing; ordinary derivative conditions remain.
Why this changes the score: Oklahoma does not require public access in this compared variant. Annual shareholder benefit statement is mandatory, but public release and independent-standard reporting are optional. Do not equate third-party language in the purpose definition with a mandatory annual outside report.
Oklahoma has no mandatory public access in the compared variant, so it gets no public-access credit. Voluntary publication is still possible. Annual shareholder statement of objectives, standards and benefit success; public release, independent-standard reporting and periodic certification are optional under §1210.
Oklahoma: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Oklahoma: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit. General-benefit definition refers to assessment against a third-party standard, but §1210 makes using a third-party standard for the annual statement optional. Audit/certification is not required.
Oklahoma makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Oklahoma’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit duties with optional public/independent annual reporting
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual shareholder statement of objectives, standards and benefit success; public release, independent-standard reporting and periodic certification are optional under §1210.
General-benefit definition refers to assessment against a third-party standard, but §1210 makes using a third-party standard for the annual statement optional. Audit/certification is not required.
Corporation direct and specified derivative standing; ordinary derivative conditions remain.
Benefit shields distinguish disinterested compliant-duty conduct from benefit-outcome failure. Ordinary director/officer charter exculpation is governed by the consolidated 2026 §1006 text and its narrower officer scope.
2026 ch.217 (SB 2184) §26 reenacted the director-and-officer clause and §27 expressly repealed the competing director-only 2024 version. The shield requires a certificate provision. Officers remain exposed to corporate/derivative claims, and the misconduct/loyalty exceptions remain. Retained exceptions: Loyalty breach; Bad faith, intentional misconduct or knowing law violation; Improper personal benefit; Director unlawful distributions under §1053; Any officer action brought by or in the right of the corporation; Acts before the certificate provision takes effect. Activation: Opt-in certificate of incorporation under §18-1006(B)(7).
Entry: Two thirds of every class/series, including otherwise nonvoting shares.. Exit: Same minimum status vote.. Model-style two-thirds each-class status/purpose protection.
Ordinary: $0 / none. No routine SOS annual-report/certificate duty for an ordinary domestic stock corporation. §18-1142(A)(5),(17) corporate annual-certificate fees concern foreign corporations; §2055.2 LLC certificates are different entities. Benefit filing: $0 / none. No state benefit-report filing in §§1201–1210. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Oklahoma ordinary corporate income tax is a flat 4% of Oklahoma taxable income. Oklahoma-source income creates a corporate return requirement; the tax is not a flat incorporation payment. Oklahoma's corporation franchise tax was eliminated starting tax year 2024; tax year 2023 was the final franchise-tax year. Ordinary corporate income tax remains. There is no surviving general fixed franchise/capital minimum for the selected ordinary corporation, and any registry/permit charges are separate. Actual Oklahoma-source income, state modifications, apportionment, and consolidated-return choices determine income tax. A corporation formed elsewhere can still owe Oklahoma tax on its Oklahoma operations. Sales/use, payroll, property, and activity-specific taxes are separate from the franchise-tax repeal. Compared yearly minimum addition: $0. Small active ordinary domestic stock C corporation operating in Oklahoma with no Oklahoma taxable income after state adjustments: $0 ordinary corporate tax and no former franchise minimum. Excludes report/permit fees and other operating taxes.
Annual shareholder benefit statement is mandatory, but public release and independent-standard reporting are optional. Do not equate third-party language in the purpose definition with a mandatory annual outside report. Benefit act currently runs §§1201–1210, not through §1213. Current ordinary charter exculpation includes officers but excludes every officer claim brought by or in the right of the corporation; 2026 legislation resolved the earlier duplicate-text conflict.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Derivative threshold is 2% of a class/series, unlike Arizona’s 2% total ownership. Independent benefit director is mandatory only for public companies, optional for private companies.
$30 / year, compared filings + minimum taxesIdaho keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Independent benefit director is mandatory only for public companies, optional for private companies.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Idaho: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Idaho offers Benefit corporation.
Idaho offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Idaho: Director charter exculpation under §30-29-202(2)(d), with improper benefit, intentional harm, unlawful distributions and intentional criminal-law exceptions. Benefit-specific rule: Independent benefit director required for publicly traded corporations only; benefit director’s special immunity excludes self-dealing, willful misconduct and knowing law violations.
Why this changes the score: Idaho keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Independent benefit director is mandatory only for public companies, optional for private companies.
Idaho has an identified director monetary-protection provision in the compared scope, which earns this credit. Director charter exculpation under §30-29-202(2)(d), with improper benefit, intentional harm, unlawful distributions and intentional criminal-law exceptions.
Idaho does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Idaho requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Idaho earns the benefit-specific credit for company. Independent benefit director required for publicly traded corporations only; benefit director’s special immunity excludes self-dealing, willful misconduct and knowing law violations.
Idaho earns the benefit-specific credit for directors. Independent benefit director required for publicly traded corporations only; benefit director’s special immunity excludes self-dealing, willful misconduct and knowing law violations.
Idaho earns the benefit-specific credit for officers. Independent benefit director required for publicly traded corporations only; benefit director’s special immunity excludes self-dealing, willful misconduct and knowing law violations.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Idaho: Annual shareholder report; all benefit reports publicly available online or free on request. No separate state benefit-report filing in §§30-2012–2013. Assessment rule: Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Why this changes the score: Idaho: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Idaho: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Idaho: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Idaho: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Idaho has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Idaho: Registry reporting: $0 per year on an annualized basis. Minimum tax/license used here: $30. Ordinary domestic C corporation operating in Idaho, no taxable profit, no credit or special exemption. Includes both $20 corporate minimum and $10 PBF; excludes registry and variable operating taxes. Do not add another $10 if PBF has already been counted separately.
Why this changes the score: Idaho has a compared recurring floor of $30 per year, including $30 in identified minimum tax/license charges.
Idaho has a compared recurring floor of $30 per year, including $30 in identified minimum tax/license charges. Ordinary domestic C corporation operating in Idaho, no taxable profit, no credit or special exemption. Includes both $20 corporate minimum and $10 PBF; excludes registry and variable operating taxes. Do not add another $10 if PBF has already been counted separately. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Idaho: Becoming a benefit company: Two thirds of every class/series, including otherwise nonvoting shares. Two-thirds each-class status approval; specific-purpose changes also require minimum status vote. Changing back: Same minimum status vote.
Why this changes the score: Idaho entry uses Two thirds of every class/series, including otherwise nonvoting shares.; exit uses Same minimum status vote.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Idaho: becoming a benefit company requires Two thirds of every class/series, including otherwise nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Idaho: changing back requires Same minimum status vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Idaho: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual shareholder report; all benefit reports publicly available online or free on request. No separate state benefit-report filing in §§30-2012–2013. Enforcement: A small class holding can qualify even when below 2% of all shares. Corporation also has direct standing.
Why this changes the score: Idaho requires public access to the report. Derivative threshold is 2% of a class/series, unlike Arizona’s 2% total ownership. Independent benefit director is mandatory only for public companies, optional for private companies. Online registry renewal is free; the company must still prepare/publicize annual benefit assessment.
Idaho requires report access for people outside the company, so it earns public-access credit. Annual shareholder report; all benefit reports publicly available online or free on request. No separate state benefit-report filing in §§30-2012–2013.
Idaho: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Idaho: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Idaho makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Idaho’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit model with class-based enforcement
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual shareholder report; all benefit reports publicly available online or free on request. No separate state benefit-report filing in §§30-2012–2013.
Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
A small class holding can qualify even when below 2% of all shares. Corporation also has direct standing.
Independent benefit director required for publicly traded corporations only; benefit director’s special immunity excludes self-dealing, willful misconduct and knowing law violations.
Director charter exculpation under §30-29-202(2)(d), with improper benefit, intentional harm, unlawful distributions and intentional criminal-law exceptions. Retained exceptions: Improper financial benefit; Intentional infliction of harm; Specified unlawful distributions; Intentional criminal-law violation; Acts before the provision becomes effective. Activation: Opt-in articles.
Entry: Two thirds of every class/series, including otherwise nonvoting shares.. Exit: Same minimum status vote.. Two-thirds each-class status approval; specific-purpose changes also require minimum status vote.
Ordinary: $0 / annual. Online annual report is free. Paper manual-processing fees are excluded. Benefit filing: $0 / none. No separate state benefit-report filing requirement identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
The general corporate income/franchise rate is 5.3% for tax years beginning January 1, 2025 or later. Ordinary corporations generally owe at least $20 before credits, plus a separate $10 permanent building fund tax; corporate income and franchise taxes are alternatives, not cumulative. $20 corporate minimum plus $10 PBF gives a $30 ordinary no-credit annual baseline. Registered inactive/nameholder corporations are generally included. Specified exceptions, including Public Law 86-272 protection, and allowed credits can affect liability. Doing business, registration or Idaho-source income can trigger filing. Multistate income is allocated/apportioned; narrow federal protections and special sales-only elections require their own analysis. Compared yearly minimum addition: $30. Ordinary domestic C corporation operating in Idaho, no taxable profit, no credit or special exemption. Includes both $20 corporate minimum and $10 PBF; excludes registry and variable operating taxes. Do not add another $10 if PBF has already been counted separately.
Derivative threshold is 2% of a class/series, unlike Arizona’s 2% total ownership. Independent benefit director is mandatory only for public companies, optional for private companies. Online registry renewal is free; the company must still prepare/publicize annual benefit assessment.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Any-shareholder benefit enforcement and potential plaintiff fee awards increase accountability. Director benefit-failure shield expressly depends on compliance with the benefit part.
$50 / year, compared filings + minimum taxesMontana keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director benefit-failure shield expressly depends on compliance with the benefit part.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Montana: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Montana offers Benefit corporation.
Montana offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Montana: Ordinary director charter exculpation under §35-14-202(2)(d), with improper benefit, intentional harm, unlawful distribution and intentional criminal exceptions. Benefit-specific rule: Director benefit-failure protection has an express compliance condition; enforcement has no shareholder ownership floor and may shift fees.
Why this changes the score: Montana keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director benefit-failure shield expressly depends on compliance with the benefit part.
Montana has an identified director monetary-protection provision in the compared scope, which earns this credit. Ordinary director charter exculpation under §35-14-202(2)(d), with improper benefit, intentional harm, unlawful distribution and intentional criminal exceptions.
Montana does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Montana requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Montana earns the benefit-specific credit for company. Director benefit-failure protection has an express compliance condition; enforcement has no shareholder ownership floor and may shift fees.
Montana earns the benefit-specific credit for directors. Director benefit-failure protection has an express compliance condition; enforcement has no shareholder ownership floor and may shift fees.
Montana earns the benefit-specific credit for officers. Director benefit-failure protection has an express compliance condition; enforcement has no shareholder ownership floor and may shift fees.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Montana: Annual shareholder report and all public website reports or free copies on request; no separate state benefit-report filing identified. Assessment rule: Annual report assesses general benefit against an independent third-party standard. The act does not mandate paid private certification.
Why this changes the score: Montana: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Montana: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Montana: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Montana: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Montana has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Montana: Registry reporting: $0 per year on an annualized basis. Minimum tax/license used here: $50. Ordinary domestic C corporation operating in Montana, no taxable profit, standard tax method and no special exception/credit. Includes $50 minimum; excludes registry fees and variable tax.
Why this changes the score: Montana has a compared recurring floor of $50 per year, including $50 in identified minimum tax/license charges.
Montana has a compared recurring floor of $50 per year, including $50 in identified minimum tax/license charges. Ordinary domestic C corporation operating in Montana, no taxable profit, standard tax method and no special exception/credit. Includes $50 minimum; excludes registry fees and variable tax. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Montana: Becoming a benefit company: Two thirds of every class/series, including nonvoting shares. Two-thirds class mission/status protection plus specified dissenting-shareholder purchase rights. Changing back: Same minimum status vote.
Why this changes the score: Montana entry uses Two thirds of every class/series, including nonvoting shares.; exit uses Same minimum status vote.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Montana: becoming a benefit company requires Two thirds of every class/series, including nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Montana: changing back requires Same minimum status vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Montana: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual shareholder report and all public website reports or free copies on request; no separate state benefit-report filing identified. Enforcement: Any shareholder can bring benefit enforcement; a court may award plaintiff costs and attorney fees for unjustified noncompliance.
Why this changes the score: Montana requires public access to the report. Any-shareholder benefit enforcement and potential plaintiff fee awards increase accountability.
Montana requires report access for people outside the company, so it earns public-access credit. Annual shareholder report and all public website reports or free copies on request; no separate state benefit-report filing identified.
Montana: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Montana: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Montana makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Montana’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit model with any-shareholder enforcement and fee shifting
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual shareholder report and all public website reports or free copies on request; no separate state benefit-report filing identified.
Annual report assesses general benefit against an independent third-party standard. The act does not mandate paid private certification.
Any shareholder can bring benefit enforcement; a court may award plaintiff costs and attorney fees for unjustified noncompliance.
Director benefit-failure protection has an express compliance condition; enforcement has no shareholder ownership floor and may shift fees.
Ordinary director charter exculpation under §35-14-202(2)(d), with improper benefit, intentional harm, unlawful distribution and intentional criminal exceptions. Retained exceptions: Improper financial benefit; Intentional infliction of harm; Specified unlawful distributions; Intentional criminal-law violation; Acts before the provision becomes effective. Activation: Opt-in articles.
Entry: Two thirds of every class/series, including nonvoting shares.. Exit: Same minimum status vote.. Two-thirds class mission/status protection plus specified dissenting-shareholder purchase rights.
Ordinary: $0 / annual. On-time Jan. 1–Apr. 15 filing fee waived for 2026; official announcement also waives 2027. This is a dated waiver, not a permanent statutory zero. Benefit filing: $0 / none. No separate state benefit-report filing identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
General corporate income tax is 6.75% of Montana taxable income with a $50 minimum for corporations having Montana activity. A water's-edge election uses 7%; a qualifying sales-only corporation can elect a 0.5% gross-sales alternative. The $50 corporate minimum applies to ordinary C corporations with Montana activity, including loss years. The agency permits an affidavit of inactivity when there is no business activity; formation alone is not modeled as an unavoidable $50 charge. Montana business activity and nexus determine filing. Multistate allocation/apportionment and combined reporting matter; the gross-sales alternative has sales-only, property and receipts conditions. Compared yearly minimum addition: $50. Ordinary domestic C corporation operating in Montana, no taxable profit, standard tax method and no special exception/credit. Includes $50 minimum; excludes registry fees and variable tax.
Any-shareholder benefit enforcement and potential plaintiff fee awards increase accountability. Director benefit-failure shield expressly depends on compliance with the benefit part. Ordinary corporate code was recodified as Chapter 14; benefit rules remain Chapter 1 Part 14. Annual filing-cost advantage is a dated waiver.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Both director/officer ordinary protections available through shareholder-adopted bylaws. Benefit-director special immunity uses recklessness exception, ordinary benefit-duty clause uses knowing violation.
$77 / year, compared filings + minimum taxesPennsylvania adds ordinary officer coverage; the charter must elect the ordinary protection. Both director/officer ordinary protections available through shareholder-adopted bylaws. Benefit-director special immunity uses recklessness exception, ordinary benefit-duty clause uses knowing violation.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 22 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Pennsylvania: General public benefit required; specific charter benefits optional.
Why this changes the score: Pennsylvania offers Benefit corporation.
Pennsylvania offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Pennsylvania: Shareholder-adopted BYLAWS can exculpate both directors and officers for monetary damages, except duty failures involving self-dealing, wilful misconduct or recklessness. Criminal responsibility and tax liabilities excluded. Officer provision added in 2022. Benefit-specific rule: Corporation mission-failure damages barred. Directors/officers protected for benefit duties except self-dealing, wilful misconduct, knowing violations, and separately for mission failure. Benefit-director immunity instead excludes recklessness.
Why this changes the score: Pennsylvania adds ordinary officer coverage; the charter must elect the ordinary protection. Both director/officer ordinary protections available through shareholder-adopted bylaws. Benefit-director special immunity uses recklessness exception, ordinary benefit-duty clause uses knowing violation.
Pennsylvania has an identified director monetary-protection provision in the compared scope, which earns this credit. Shareholder-adopted BYLAWS can exculpate both directors and officers for monetary damages, except duty failures involving self-dealing, wilful misconduct or recklessness. Criminal responsibility and tax liabilities excluded. Officer provision added in 2022.
Pennsylvania extends ordinary protection to officers, which earns officer-scope credit. Shareholder-adopted BYLAWS can exculpate both directors and officers for monetary damages, except duty failures involving self-dealing, wilful misconduct or recklessness. Criminal responsibility and tax liabilities excluded. Officer provision added in 2022.
Pennsylvania requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Pennsylvania earns the benefit-specific credit for company. Corporation mission-failure damages barred. Directors/officers protected for benefit duties except self-dealing, wilful misconduct, knowing violations, and separately for mission failure. Benefit-director immunity instead excludes recklessness.
Pennsylvania earns the benefit-specific credit for directors. Corporation mission-failure damages barred. Directors/officers protected for benefit duties except self-dealing, wilful misconduct, knowing violations, and separately for mission failure. Benefit-director immunity instead excludes recklessness.
Pennsylvania earns the benefit-specific credit for officers. Corporation mission-failure damages barred. Directors/officers protected for benefit duties except self-dealing, wilful misconduct, knowing violations, and separately for mission failure. Benefit-director immunity instead excludes recklessness.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Pennsylvania: Annual to shareholders by earlier of 120 days or other annual report. All reports public online; latest free on request if no website. State benefit-report copy plus $70 fee. Assessment rule: Third-party standard assessment required; assessment need not be audited or certified by a third party.
Why this changes the score: Pennsylvania: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Pennsylvania: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Pennsylvania: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Pennsylvania: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Pennsylvania has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Pennsylvania: Registry reporting: $77 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation in a regular 2026 tax year with no Pennsylvania taxable profit after state modifications and apportionment. Excludes annual corporate/benefit reporting and local or sector-specific taxes.
Why this changes the score: Pennsylvania has a compared recurring floor of $77 per year, including $0 in identified minimum tax/license charges.
Pennsylvania has a compared recurring floor of $77 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular 2026 tax year with no Pennsylvania taxable profit after state modifications and apportionment. Excludes annual corporate/benefit reporting and local or sector-specific taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Pennsylvania: Becoming a benefit company: two-thirds of each class, including nonvoting. Two-thirds of each class/series, including nonvoting, for entry/exit and specified transactions. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: Pennsylvania entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Pennsylvania: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Pennsylvania: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Pennsylvania: Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required only for statutory registered corporations; optional otherwise. Disclosure: Annual to shareholders by earlier of 120 days or other annual report. All reports public online; latest free on request if no website. State benefit-report copy plus $70 fee. Enforcement: Corporation; a shareholder owning 2% of a class/series at challenged act (the statute does not expressly allow aggregation here), a director, a person/group owning 5% parent equity, and charter/bylaw designees.
Why this changes the score: Pennsylvania requires public access to the report. Both director/officer ordinary protections available through shareholder-adopted bylaws. $70 benefit report remains separate from new $7 annual corporate report. Unlike Maine/NH/RI, the 2% direct-company standing clause refers to a shareholder and does not expressly permit a group to aggregate.
Pennsylvania requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report. All reports public online; latest free on request if no website. State benefit-report copy plus $70 fee.
Pennsylvania: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Pennsylvania: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Pennsylvania makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required only for statutory registered corporations; optional otherwise.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Pennsylvania’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / mandatory-stakeholder model
General public benefit required; specific charter benefits optional.
Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required only for statutory registered corporations; optional otherwise.
Annual to shareholders by earlier of 120 days or other annual report. All reports public online; latest free on request if no website. State benefit-report copy plus $70 fee.
Third-party standard assessment required; assessment need not be audited or certified by a third party.
Corporation; a shareholder owning 2% of a class/series at challenged act (the statute does not expressly allow aggregation here), a director, a person/group owning 5% parent equity, and charter/bylaw designees.
Corporation mission-failure damages barred. Directors/officers protected for benefit duties except self-dealing, wilful misconduct, knowing violations, and separately for mission failure. Benefit-director immunity instead excludes recklessness.
Shareholder-adopted BYLAWS can exculpate both directors and officers for monetary damages, except duty failures involving self-dealing, wilful misconduct or recklessness. Criminal responsibility and tax liabilities excluded. Officer provision added in 2022.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Two-thirds of each class/series, including nonvoting, for entry/exit and specified transactions.
Ordinary: $7 / annual. For-profit corporation annual report began in 2025; due June 30. Benefit filing: $70 / annual. Separate from ordinary $7 report. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Pennsylvania Corporate Net Income Tax is 7.49% for tax years beginning in 2026, on modified federal taxable income. The statutory schedule is 7.99% for 2025 and 6.99% for 2027; it is not a marginal bracket schedule. Capital-stock and foreign-franchise tax ended for tax years beginning in 2016 or later. The ordinary corporate-net-income formula has no fixed-dollar minimum. Annual corporate reporting and any required benefit report remain separate fees; sector-specific gross-receipts and insurance/bank taxes differ. The revenue agency lists doing business, activities, property/capital use and substantial nexus as triggers for domestic and foreign corporations. Ordinary multistate income is generally apportioned by sales. Pennsylvania formation does not determine which state taxes the business's customers, employees or property. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation in a regular 2026 tax year with no Pennsylvania taxable profit after state modifications and apportionment. Excludes annual corporate/benefit reporting and local or sector-specific taxes.
Both director/officer ordinary protections available through shareholder-adopted bylaws. Benefit-director special immunity uses recklessness exception, ordinary benefit-duty clause uses knowing violation. $70 benefit report remains separate from new $7 annual corporate report. Unlike Maine/NH/RI, the 2% direct-company standing clause refers to a shareholder and does not expressly permit a group to aggregate.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Statutory registered-corporation classification has fact-specific securities-law edge cases. Selected statutory provisions; not a full case-law, charter or tax audit.
Optional external standard, but mandatory public annual reports. 5% enforcement threshold is higher than the 2% model in several states.
$0 / year, compared filings + minimum taxesAlabama adds ordinary officer coverage; the charter must elect the ordinary protection. 2026 officer charter exculpation excludes corporation/derivative claims; broader director protection must be distinguished.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 12 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 17 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Alabama: Whole-society and environmental impact is required through the responsible-and-sustainable duty; identified charter public benefits are optional.
Why this changes the score: Alabama offers Benefit corporation.
Alabama offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Alabama: Effective August 1, 2026, charter may exculpate directors and covered officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm and intentional criminal-law violation. Directors also retain unlawful-distribution liability; officers retain ALL claims by/in right of corporation. Covered senior officers and board-designated officers are defined. Benefit-specific rule: No standalone mission-failure damages bar in Article 17. Unless charter overrides, benefit-duty violation does not itself count as intentional harm for ordinary director exculpation/indemnification.
Why this changes the score: Alabama adds ordinary officer coverage; the charter must elect the ordinary protection. 2026 officer charter exculpation excludes corporation/derivative claims; broader director protection must be distinguished.
Alabama has an identified director monetary-protection provision in the compared scope, which earns this credit. Effective August 1, 2026, charter may exculpate directors and covered officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm and intentional criminal-law violation. Directors also retain unlawful-distribution liability; officers retain ALL claims by/in right of corporation. Covered senior officers and board-designated officers are defined.
Alabama extends ordinary protection to officers in a limited eligible-officer scope, so it receives less credit than the broader officer category. Effective August 1, 2026, charter may exculpate directors and covered officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm and intentional criminal-law violation. Directors also retain unlawful-distribution liability; officers retain ALL claims by/in right of corporation. Covered senior officers and board-designated officers are defined.
Alabama requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Alabama protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. No standalone mission-failure damages bar in Article 17. Unless charter overrides, benefit-duty violation does not itself count as intentional harm for ordinary director exculpation/indemnification.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Alabama: Annual objectives, standards, facts and assessment; shareholders receive it or access notice by earlier of 120 days after fiscal year or ordinary annual reporting. All annual reports are public online; free latest copy on written request if no website. No state benefit-report filing in Article 17. Assessment rule: A third-party standard can be required by charter/bylaws or adopted by the board; it is optional by default. No statutory third-party certification requirement.
Why this changes the score: Alabama: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Alabama: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Alabama: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Alabama: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Alabama has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Alabama: Registry reporting: $0 per year on an annualized basis. Minimum tax/license used here: $0. Regular full year after formation, ordinary small domestic C corporation, no taxable profit, and adjusted/apportioned net worth low enough that privilege tax calculates to $100 or less. This is the express exemption scenario, not an assumption that all loss-making companies owe $0.
Why this changes the score: Alabama has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges.
Alabama has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges. Regular full year after formation, ordinary small domestic C corporation, no taxable profit, and adjusted/apportioned net worth low enough that privilege tax calculates to $100 or less. This is the express exemption scenario, not an assumption that all loss-making companies owe $0. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Alabama: Becoming a benefit company: two-thirds; entitled voting groups. Entry and exit require at least two-thirds of votes entitled to be cast and each separately entitled voting group; affected-group transaction qualifications and higher charter votes apply. Changing back: two-thirds; entitled voting groups
Why this changes the score: Alabama entry uses two-thirds; entitled voting groups; exit uses two-thirds; entitled voting groups. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Alabama: becoming a benefit company requires two-thirds; entitled voting groups. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Alabama: changing back requires two-thirds; entitled voting groups. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Alabama: Directors must act responsibly and sustainably, consider shareholders and known affected stakeholders, and pursue any identified charter benefit. No duty is owed solely to benefit beneficiaries. Disclosure: Annual objectives, standards, facts and assessment; shareholders receive it or access notice by earlier of 120 days after fiscal year or ordinary annual reporting. All annual reports are public online; free latest copy on written request if no website. No state benefit-report filing in Article 17. Enforcement: Corporation or qualifying shareholder derivative suit: 5% of a class at the challenged act, or $5 million listed shares alternative; continued-ownership rules apply. Any shareholder may seek a missing report through expedited court relief.
Why this changes the score: Alabama requires public access to the report. Optional external standard, but mandatory public annual reports. 5% enforcement threshold is higher than the 2% model in several states. Annual SOS report eliminated; many older fee lists remain obsolete.
Alabama requires report access for people outside the company, so it earns public-access credit. Annual objectives, standards, facts and assessment; shareholders receive it or access notice by earlier of 120 days after fiscal year or ordinary annual reporting. All annual reports are public online; free latest copy on written request if no website. No state benefit-report filing in Article 17.
Alabama: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Alabama: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Alabama makes a mission duty mandatory, so it earns this credit. Directors must act responsibly and sustainably, consider shareholders and known affected stakeholders, and pursue any identified charter benefit. No duty is owed solely to benefit beneficiaries.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Alabama’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Responsible-and-sustainable statutory model
Whole-society and environmental impact is required through the responsible-and-sustainable duty; identified charter public benefits are optional.
Directors must act responsibly and sustainably, consider shareholders and known affected stakeholders, and pursue any identified charter benefit. No duty is owed solely to benefit beneficiaries.
Annual objectives, standards, facts and assessment; shareholders receive it or access notice by earlier of 120 days after fiscal year or ordinary annual reporting. All annual reports are public online; free latest copy on written request if no website. No state benefit-report filing in Article 17.
A third-party standard can be required by charter/bylaws or adopted by the board; it is optional by default. No statutory third-party certification requirement.
Corporation or qualifying shareholder derivative suit: 5% of a class at the challenged act, or $5 million listed shares alternative; continued-ownership rules apply. Any shareholder may seek a missing report through expedited court relief.
No standalone mission-failure damages bar in Article 17. Unless charter overrides, benefit-duty violation does not itself count as intentional harm for ordinary director exculpation/indemnification.
Effective August 1, 2026, charter may exculpate directors and covered officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm and intentional criminal-law violation. Directors also retain unlawful-distribution liability; officers retain ALL claims by/in right of corporation. Covered senior officers and board-designated officers are defined.
Entry: two-thirds; entitled voting groups. Exit: two-thirds; entitled voting groups. Entry and exit require at least two-thirds of votes entitled to be cast and each separately entitled voting group; affected-group transaction qualifications and higher charter votes apply.
Ordinary: $0 / none. SOS annual-report requirement repealed effective October 1, 2024. Benefit filing: $0 / annual. No state benefit-report filing imposed. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Ordinary C corporations pay 6.5% of Alabama net taxable income, with a deduction for federal income tax paid or accrued. Alabama has used single-sales-factor income apportionment since tax years beginning in 2021. Business privilege tax is based on adjusted Alabama-apportioned net worth, at $0.25–$1.75 per $1,000 depending on apportioned federal taxable income. For 2026, calculated tax of $100 or less is exempt and no privilege-tax return is required; ordinary C corporations otherwise have a $15,000 maximum. Activity-specific business licenses may also apply. The 2026 CPT instructions use prior-year balance-sheet net worth and generally the income-tax apportionment factor. Nonresident activity can establish substantial nexus at the stated property, payroll, sales or 25% factor thresholds. Incorporating elsewhere does not remove Alabama obligations from Alabama operations. Compared yearly minimum addition: $0. Regular full year after formation, ordinary small domestic C corporation, no taxable profit, and adjusted/apportioned net worth low enough that privilege tax calculates to $100 or less. This is the express exemption scenario, not an assumption that all loss-making companies owe $0.
Optional external standard, but mandatory public annual reports. 5% enforcement threshold is higher than the 2% model in several states. Annual SOS report eliminated; many older fee lists remain obsolete. 2026 officer charter exculpation excludes corporation/derivative claims; broader director protection must be distinguished.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Benefit duties, reporting and status votes are sourced to the enacted 2020 Article 17 text. Ordinary charter exculpation uses signed Act 2026-495, effective August 1, 2026. Cost notes include the 2024 annual-report repeal and the Department of Revenue’s 2026 CPT form and instructions. Selected statutory provisions; not a full case-law, charter or tax audit.
Specified charter mission, rather than compulsory broad general-benefit purpose. Optional external standard/public internet posting keeps reporting more flexible, but anyone may request annual report.
$60 / year, compared filings + minimum taxesGeorgia adds ordinary officer coverage; the charter must elect the ordinary protection. 2026 law extends ordinary charter exculpation to officers and permits business-court selection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 14 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 17 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Georgia: Charter must state one or more identified public benefits. Article 18 does not require the model-law general-whole-society purpose.
Why this changes the score: Georgia offers Benefit corporation.
Georgia offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Georgia: From July 1, 2026, charter may exculpate directors and officers against corporation/shareholder damages. Excludes corporate-opportunity appropriation, intentional misconduct/knowing law violations, unlawful distributions and improper personal benefit. Charter/bylaws may select Georgia State-wide Business Court for lawful internal claims. Benefit-specific rule: Unless charter overrides, directors owe no monetary liability to any person for benefit-duty failures or failure to pursue specified benefit. Article 18 contains no corresponding express officer or corporation mission-failure bar.
Why this changes the score: Georgia adds ordinary officer coverage; the charter must elect the ordinary protection. 2026 law extends ordinary charter exculpation to officers and permits business-court selection.
Georgia has an identified director monetary-protection provision in the compared scope, which earns this credit. From July 1, 2026, charter may exculpate directors and officers against corporation/shareholder damages. Excludes corporate-opportunity appropriation, intentional misconduct/knowing law violations, unlawful distributions and improper personal benefit. Charter/bylaws may select Georgia State-wide Business Court for lawful internal claims.
Georgia extends ordinary protection to officers in a limited eligible-officer scope, so it receives less credit than the broader officer category. From July 1, 2026, charter may exculpate directors and officers against corporation/shareholder damages. Excludes corporate-opportunity appropriation, intentional misconduct/knowing law violations, unlawful distributions and improper personal benefit. Charter/bylaws may select Georgia State-wide Business Court for lawful internal claims.
Georgia requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Georgia has no separately credited benefit-specific monetary shield for company. Unless charter overrides, directors owe no monetary liability to any person for benefit-duty failures or failure to pursue specified benefit. Article 18 contains no corresponding express officer or corporation mission-failure bar.
Georgia earns the benefit-specific credit for directors. Unless charter overrides, directors owe no monetary liability to any person for benefit-duty failures or failure to pursue specified benefit. Article 18 contains no corresponding express officer or corporation mission-failure bar.
Georgia has no separately credited benefit-specific monetary shield for officers. Unless charter overrides, directors owe no monetary liability to any person for benefit-duty failures or failure to pursue specified benefit. Article 18 contains no corresponding express officer or corporation mission-failure bar.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Georgia: At least annual to record shareholders and anyone requesting in writing. General internet publication, more frequent reports, third-party standards/certification can be added voluntarily. No state benefit filing. Assessment rule: Board-selected standards required; external third-party standard and certification optional unless added in charter/bylaws.
Why this changes the score: Georgia: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Georgia: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Georgia: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Georgia: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Georgia has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Georgia: Registry reporting: $60 per year on an annualized basis. Minimum tax/license used here: $0. Small active domestic C corporation in a regular year after its initial return, no Georgia taxable profit, and taxable net worth of $100,000 or less. A return remains required; the annual registration fee is additional.
Why this changes the score: Georgia has a compared recurring floor of $60 per year, including $0 in identified minimum tax/license charges.
Georgia has a compared recurring floor of $60 per year, including $0 in identified minimum tax/license charges. Small active domestic C corporation in a regular year after its initial return, no Georgia taxable profit, and taxable net worth of $100,000 or less. A return remains required; the annual registration fee is additional. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Georgia: Becoming a benefit company: two-thirds of each class, including nonvoting. Two-thirds of every class/series, including nonvoting, for entry, substantive benefit alteration/deletion, and covered transactions that transfer ownership/assets outside a substantially similar benefit purpose. Changing back: two-thirds; includes substantive mission modification
Why this changes the score: Georgia entry uses two-thirds of each class, including nonvoting; exit uses two-thirds; includes substantive mission modification. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Georgia: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Georgia: changing back requires two-thirds; includes substantive mission modification. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Georgia: Directors must consider the identified public benefits and adopt performance standards. No explicit Delaware-style balancing rule or mandatory multi-stakeholder list. No independent benefit director required. Disclosure: At least annual to record shareholders and anyone requesting in writing. General internet publication, more frequent reports, third-party standards/certification can be added voluntarily. No state benefit filing. Enforcement: No bespoke benefit-enforcement ownership threshold in Article 18. Ordinary derivative law requires contemporaneous ownership and adequate representation; nationally listed companies may set a threshold up to 1% under 2026 law.
Why this changes the score: Georgia requires public access to the report. Optional external standard/public internet posting keeps reporting more flexible, but anyone may request annual report.
Georgia requires report access for people outside the company, so it earns public-access credit. At least annual to record shareholders and anyone requesting in writing. General internet publication, more frequent reports, third-party standards/certification can be added voluntarily. No state benefit filing.
Georgia: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Georgia: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Georgia makes a mission duty mandatory, so it earns this credit. Directors must consider the identified public benefits and adopt performance standards. No explicit Delaware-style balancing rule or mandatory multi-stakeholder list. No independent benefit director required.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Georgia’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Specified-benefit / board-selected-standard model
Charter must state one or more identified public benefits. Article 18 does not require the model-law general-whole-society purpose.
Directors must consider the identified public benefits and adopt performance standards. No explicit Delaware-style balancing rule or mandatory multi-stakeholder list. No independent benefit director required.
At least annual to record shareholders and anyone requesting in writing. General internet publication, more frequent reports, third-party standards/certification can be added voluntarily. No state benefit filing.
Board-selected standards required; external third-party standard and certification optional unless added in charter/bylaws.
No bespoke benefit-enforcement ownership threshold in Article 18. Ordinary derivative law requires contemporaneous ownership and adequate representation; nationally listed companies may set a threshold up to 1% under 2026 law.
Unless charter overrides, directors owe no monetary liability to any person for benefit-duty failures or failure to pursue specified benefit. Article 18 contains no corresponding express officer or corporation mission-failure bar.
From July 1, 2026, charter may exculpate directors and officers against corporation/shareholder damages. Excludes corporate-opportunity appropriation, intentional misconduct/knowing law violations, unlawful distributions and improper personal benefit. Charter/bylaws may select Georgia State-wide Business Court for lawful internal claims.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds; includes substantive mission modification. Two-thirds of every class/series, including nonvoting, for entry, substantive benefit alteration/deletion, and covered transactions that transfer ownership/assets outside a substantially similar benefit purpose.
Ordinary: $60 / annual. Effective September 6, 2025, annual registration for a benefit/profit corporation is $60 online or on paper: $50 filing fee plus $10 service charge. This excludes late and optional expedited charges. Benefit filing: $0 / annual. No state benefit-report filing in Article 18. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
The corporate income-tax rate is 4.99% for tax years beginning in 2026, following HB 463 signed May 11, 2026. The DOR corporate overview and 2025 booklet still display 5.19%, so those older rate statements should not be used as the 2026 rate. Georgia also imposes a graduated corporate net-worth tax. Net worth of $100,000 or less is not taxed but still requires a return; higher net worth raises tax up to $5,000 above $22 million. New corporations have an initial net-worth return; annual registration and local occupation-tax obligations are separate. DOR subjects corporations owning property, doing business or receiving Georgia-source income to corporate tax. Georgia's official economic-development guidance confirms single-factor apportionment. Net-worth tax follows its own valuation/apportionment rules, so low receipts alone do not establish $0 net-worth tax. Compared yearly minimum addition: $0. Small active domestic C corporation in a regular year after its initial return, no Georgia taxable profit, and taxable net worth of $100,000 or less. A return remains required; the annual registration fee is additional.
Specified charter mission, rather than compulsory broad general-benefit purpose. Optional external standard/public internet posting keeps reporting more flexible, but anyone may request annual report. 2026 law extends ordinary charter exculpation to officers and permits business-court selection.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Benefit-law citations use the legislature’s official 2025 Title 14 code supplement. Ordinary charter protection and the nationally listed-company derivative threshold incorporate signed 2026 HB1185, effective July 1, 2026. Annual fees use the agency schedule effective September 6, 2025. Selected statutory provisions; not a full case-law, charter or tax audit.
Specific purpose may be board/bylaw action. Entry/exit ordinary vote; no benefit-specific 2/3.
$25 / year, compared filings + minimum taxesWest Virginia keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Company monetary bar not included, unlike many model states.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 10 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 20 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
West Virginia: General public benefit required. Specific benefits may be chosen through articles, bylaws OR board action, unusually flexible.
Why this changes the score: West Virginia offers Benefit corporation.
West Virginia offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
West Virginia: Director-only charter fiduciary monetary exculpation excludes loyalty, bad faith/intentional misconduct/knowing law violation, unlawful distributions and improper personal benefit. Prospective. Benefit-specific rule: Director compliant-conduct/benefit-failure monetary bar applies in corporation/shareholder suits. Officer good-faith-business-judgment protection linked to purpose and standard. No express company benefit-failure monetary bar in enforcement provision.
Why this changes the score: West Virginia keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Company monetary bar not included, unlike many model states.
West Virginia has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only charter fiduciary monetary exculpation excludes loyalty, bad faith/intentional misconduct/knowing law violation, unlawful distributions and improper personal benefit. Prospective.
West Virginia does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
West Virginia requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
West Virginia has no separately credited benefit-specific monetary shield for company. Director compliant-conduct/benefit-failure monetary bar applies in corporation/shareholder suits. Officer good-faith-business-judgment protection linked to purpose and standard. No express company benefit-failure monetary bar in enforcement provision.
West Virginia earns the benefit-specific credit for directors. Director compliant-conduct/benefit-failure monetary bar applies in corporation/shareholder suits. Officer good-faith-business-judgment protection linked to purpose and standard. No express company benefit-failure monetary bar in enforcement provision.
West Virginia has no separately credited benefit-specific monetary shield for officers. Director compliant-conduct/benefit-failure monetary bar applies in corporation/shareholder suits. Officer good-faith-business-judgment protection linked to purpose and standard. No express company benefit-failure monetary bar in enforcement provision.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
West Virginia: Annual shareholder delivery within 120 days/year-end or annual report delivery. Latest report public website or free on request; specified proprietary information/compensation may be removed. No state benefit filing specified. Assessment rule: Annual assessment against third-party standard required. No statutory requirement to buy third-party certification in annual report provision.
Why this changes the score: West Virginia: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
West Virginia: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
West Virginia: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
West Virginia: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
West Virginia has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
West Virginia: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation in a regular full year with no West Virginia taxable profit after state modifications and apportionment. The separate annual-report fee and any other operating taxes remain additional.
Why this changes the score: West Virginia has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges.
West Virginia has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular full year with no West Virginia taxable profit after state modifications and apportionment. The separate annual-report fee and any other operating taxes remain additional. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
West Virginia: Becoming a benefit company: ordinary amendment: votes for exceed against at majority quorum. Entry and exit use ordinary article-amendment procedures, with board adoption/submission and shareholder notice. Default approval is votes favoring the amendment exceed votes opposing in each required voting group, at a meeting with a quorum of at least a majority of votes entitled to be cast. Articles or board conditions can require more; separate voting groups apply where statutory class/series rights require them. The benefit chapter adds no separate two-thirds status vote. Changing back: ordinary amendment: votes for exceed against at majority quorum
Why this changes the score: West Virginia entry uses ordinary amendment: votes for exceed against at majority quorum; exit uses ordinary amendment: votes for exceed against at majority quorum. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
West Virginia: becoming a benefit company requires ordinary amendment: votes for exceed against at majority quorum. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
West Virginia: changing back requires ordinary amendment: votes for exceed against at majority quorum. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
West Virginia: Directors shall consider listed stakeholders; no required priority unless articles specify. Beneficiaries have no director duty solely by status. Disclosure: Annual shareholder delivery within 120 days/year-end or annual report delivery. Latest report public website or free on request; specified proprietary information/compensation may be removed. No state benefit filing specified. Enforcement: Company directly; derivatively any shareholder, director or charter/bylaw designee; no percentage floor or 5% parent category stated.
Why this changes the score: West Virginia requires public access to the report. Any shareholder enforcement.
West Virginia requires report access for people outside the company, so it earns public-access credit. Annual shareholder delivery within 120 days/year-end or annual report delivery. Latest report public website or free on request; specified proprietary information/compensation may be removed. No state benefit filing specified.
West Virginia: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
West Virginia: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
West Virginia makes a mission duty mandatory, so it earns this credit. Directors shall consider listed stakeholders; no required priority unless articles specify. Beneficiaries have no director duty solely by status.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download West Virginia’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit mandatory stakeholder model; ordinary status vote
General public benefit required. Specific benefits may be chosen through articles, bylaws OR board action, unusually flexible.
Directors shall consider listed stakeholders; no required priority unless articles specify. Beneficiaries have no director duty solely by status.
Annual shareholder delivery within 120 days/year-end or annual report delivery. Latest report public website or free on request; specified proprietary information/compensation may be removed. No state benefit filing specified.
Annual assessment against third-party standard required. No statutory requirement to buy third-party certification in annual report provision.
Company directly; derivatively any shareholder, director or charter/bylaw designee; no percentage floor or 5% parent category stated.
Director compliant-conduct/benefit-failure monetary bar applies in corporation/shareholder suits. Officer good-faith-business-judgment protection linked to purpose and standard. No express company benefit-failure monetary bar in enforcement provision.
Director-only charter fiduciary monetary exculpation excludes loyalty, bad faith/intentional misconduct/knowing law violation, unlawful distributions and improper personal benefit. Prospective.
Entry: ordinary amendment: votes for exceed against at majority quorum. Exit: ordinary amendment: votes for exceed against at majority quorum. Entry and exit use ordinary article-amendment procedures, with board adoption/submission and shareholder notice. Default approval is votes favoring the amendment exceed votes opposing in each required voting group, at a meeting with a quorum of at least a majority of votes entitled to be cast. Articles or board conditions can require more; separate voting groups apply where statutory class/series rights require them. The benefit chapter adds no separate two-thirds status vote.
Ordinary: $25 / annual. Ordinary for-profit annual report $25 timely by June 30; online filing adds $1 processing. Veteran waiver can apply first four years. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
West Virginia corporation net income tax is 6.5% of West Virginia taxable income for ordinary subject corporations. Since tax year 2022, the state uses single-sales-factor apportionment and market sourcing for services and certain intangible property. The former Business Franchise Tax ceased after December 31, 2014. No former franchise minimum should be added to current annual registry reporting. Corporate income, sector-specific business taxes and property, sales and payroll taxes remain separate obligations. The Tax Division treats domestic and foreign corporations engaged in business/deriving state income as subject. Its current sourcing page places services in the numerator when delivered to West Virginia customers and licensed intangibles when used in the state. Incorporation elsewhere does not remove those customer-market connections. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation in a regular full year with no West Virginia taxable profit after state modifications and apportionment. The separate annual-report fee and any other operating taxes remain additional.
Specific purpose may be board/bylaw action. Entry/exit ordinary vote; no benefit-specific 2/3. Company monetary bar not included, unlike many model states. Any shareholder enforcement.
Primary-source findings with stated qualifications. Selected statutory provisions; not a full case-law, charter or tax audit.
Annual statement due within 30 days, much earlier than 120-day model states. General-benefit mandate without mandatory third-party standard/public report.
$25 / year, compared filings + minimum taxesWisconsin keeps this ordinary shield limited to directors and a default statutory liability rule. Benefit director mandatory but independence not required in chapter. Ordinary director protection automatic.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 13 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 16 |
| Public transparency | 9 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Wisconsin: General public benefit required, specific optional. General benefit definition uses material positive society/environment impact without making third-party standard part of definition.
Why this changes the score: Wisconsin offers Benefit corporation.
Wisconsin offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Wisconsin: Automatic director-only monetary-liability limitation for internal corporate/shareholder claims; charter may narrow it. Exceptions: willful unfair dealing with a material conflict, criminal-law violation (reasonable-lawfulness exception), improper profit, and willful misconduct. Officers are not included in section 180.0828; section 180.0841 assigns officer duties but supplies no equivalent exculpation. Separate director/officer indemnification provisions can fund defense and certain judgments subject to their own conditions. Benefit-specific rule: Directors monetary protection for compliant actions and benefit failure; officers protected for compliant actions. Benefit director loses special protection for self-dealing, willful misconduct or knowing illegality. No blanket company monetary bar in chapter.
Why this changes the score: Wisconsin keeps this ordinary shield limited to directors and a default statutory liability rule. Benefit director mandatory but independence not required in chapter. Ordinary director protection automatic.
Wisconsin has an identified director monetary-protection provision in the compared scope, which earns this credit. Automatic director-only monetary-liability limitation for internal corporate/shareholder claims; charter may narrow it. Exceptions: willful unfair dealing with a material conflict, criminal-law violation (reasonable-lawfulness exception), improper profit, and willful misconduct. Officers are not included in section 180.0828; section 180.0841 assigns officer duties but supplies no equivalent exculpation. Separate director/officer indemnification provisions can fund defense and certain judgments subject to their own conditions.
Wisconsin does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Wisconsin has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Wisconsin has no separately credited benefit-specific monetary shield for company. Directors monetary protection for compliant actions and benefit failure; officers protected for compliant actions. Benefit director loses special protection for self-dealing, willful misconduct or knowing illegality. No blanket company monetary bar in chapter.
Wisconsin earns the benefit-specific credit for directors. Directors monetary protection for compliant actions and benefit failure; officers protected for compliant actions. Benefit director loses special protection for self-dealing, willful misconduct or knowing illegality. No blanket company monetary bar in chapter.
Wisconsin has no separately credited benefit-specific monetary shield for officers. Directors monetary protection for compliant actions and benefit failure; officers protected for compliant actions. Benefit director loses special protection for self-dealing, willful misconduct or knowing illegality. No blanket company monetary bar in chapter.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Wisconsin: Annual shareholder statement within 30 days after fiscal-year end. Public report and third-party standard/certification are optional articles/bylaws requirements; no state benefit filing. Assessment rule: Optional through articles/bylaws. Optional through articles/bylaws.
Why this changes the score: Wisconsin: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Wisconsin: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Wisconsin: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Wisconsin: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Wisconsin has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Wisconsin: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation with zero Wisconsin taxable net income and gross receipts from all activities below $4 million: $0 franchise/income tax and no economic-development surcharge. Excludes registry/report fees and other operating taxes.
Why this changes the score: Wisconsin has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges.
Wisconsin has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation with zero Wisconsin taxable net income and gross receipts from all activities below $4 million: $0 franchise/income tax and no economic-development surcharge. Excludes registry/report fees and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Wisconsin: Becoming a benefit company: 2/3 shares entitled vote. Entry/covered fundamental transaction requires 2/3 shares entitled to vote notwithstanding governing-document provisions, plus dissent rights. Exit deletes status statement under ordinary amendment rules; one-year wait before benefit reelection. For a newly formed corporation, the ordinary amendment default is votes favoring exceed votes opposing in each required voting group at a quorum meeting (180.0725/180.0726). If an amendment creates dissenters rights, 180.1003(3)(a) requires a majority of votes entitled to be cast by the affected voting group. The articles, authorized bylaws or board conditions can require more; pre-1973 corporations have transitional rules under 180.1706. Changing back: ordinary amendment: votes for exceed against with quorum, subject to voting groups/greater thresholds
Why this changes the score: Wisconsin entry uses 2/3 shares entitled vote; exit uses ordinary amendment: votes for exceed against with quorum, subject to voting groups/greater thresholds. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Wisconsin: becoming a benefit company requires 2/3 shares entitled vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Wisconsin: changing back requires ordinary amendment: votes for exceed against with quorum, subject to voting groups/greater thresholds. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Wisconsin: Directors shall consider listed stakeholders; charter priorities allowed. All benefit corporations must designate benefit director; chapter does not impose model independent-director requirement. Disclosure: Annual shareholder statement within 30 days after fiscal-year end. Public report and third-party standard/certification are optional articles/bylaws requirements; no state benefit filing. Enforcement: No dedicated percentage-threshold benefit-enforcement section in chapter 204. Ordinary derivative standing requires contemporaneous shareholder/beneficial-owner and adequate representation; no numeric floor.
Why this changes the score: Wisconsin does not require public access in this compared variant. General-benefit mandate without mandatory third-party standard/public report.
Wisconsin has no mandatory public access in the compared variant, so it gets no public-access credit. Voluntary publication is still possible. Annual shareholder statement within 30 days after fiscal-year end. Public report and third-party standard/certification are optional articles/bylaws requirements; no state benefit filing.
Wisconsin: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Wisconsin: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Wisconsin makes a mission duty mandatory, so it earns this credit. Directors shall consider listed stakeholders; charter priorities allowed. All benefit corporations must designate benefit director; chapter does not impose model independent-director requirement.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Wisconsin’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit consideration with optional standard/publicity
General public benefit required, specific optional. General benefit definition uses material positive society/environment impact without making third-party standard part of definition.
Directors shall consider listed stakeholders; charter priorities allowed. All benefit corporations must designate benefit director; chapter does not impose model independent-director requirement.
Annual shareholder statement within 30 days after fiscal-year end. Public report and third-party standard/certification are optional articles/bylaws requirements; no state benefit filing.
Optional through articles/bylaws. Optional through articles/bylaws.
No dedicated percentage-threshold benefit-enforcement section in chapter 204. Ordinary derivative standing requires contemporaneous shareholder/beneficial-owner and adequate representation; no numeric floor.
Directors monetary protection for compliant actions and benefit failure; officers protected for compliant actions. Benefit director loses special protection for self-dealing, willful misconduct or knowing illegality. No blanket company monetary bar in chapter.
Automatic director-only monetary-liability limitation for internal corporate/shareholder claims; charter may narrow it. Exceptions: willful unfair dealing with a material conflict, criminal-law violation (reasonable-lawfulness exception), improper profit, and willful misconduct. Officers are not included in section 180.0828; section 180.0841 assigns officer duties but supplies no equivalent exculpation. Separate director/officer indemnification provisions can fund defense and certain judgments subject to their own conditions.
Entry: 2/3 shares entitled vote. Exit: ordinary amendment: votes for exceed against with quorum, subject to voting groups/greater thresholds. Entry/covered fundamental transaction requires 2/3 shares entitled to vote notwithstanding governing-document provisions, plus dissent rights. Exit deletes status statement under ordinary amendment rules; one-year wait before benefit reelection. For a newly formed corporation, the ordinary amendment default is votes favoring exceed votes opposing in each required voting group at a quorum meeting (180.0725/180.0726). If an amendment creates dissenters rights, 180.1003(3)(a) requires a majority of votes entitled to be cast by the affected voting group. The articles, authorized bylaws or board conditions can require more; pre-1973 corporations have transitional rules under 180.1706.
Ordinary: $25 / annual. Domestic business-corporation annual report $25 online/$40 paper. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Wisconsin imposes either corporate franchise tax or corporate income tax at 7.9% of Wisconsin taxable net income; the two are alternatives, not additive taxes. Domestic corporations with nonexempt income are generally under the franchise-tax version, which is income-based despite its name. No general flat franchise/capital minimum applies to the small ordinary corporation. Covered corporations with at least $4 million in gross receipts from all activities and Wisconsin business activity owe an economic-development surcharge: for ordinary C corporations, 3% of gross Wisconsin tax liability, at least $25 and at most $9,800. The conditional $25 minimum is not universal. Corporate annual report fees are separate. Domestic/licensed corporations generally file even without business activity, subject to exemptions. Wisconsin nexus, state income adjustments, allocation/apportionment, and combined reporting determine tax. Surcharge eligibility counts receipts from all activities and is evaluated for the covered corporation; a loss alone does not remove the $25 conditional minimum once eligible. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation with zero Wisconsin taxable net income and gross receipts from all activities below $4 million: $0 franchise/income tax and no economic-development surcharge. Excludes registry/report fees and other operating taxes.
Annual statement due within 30 days, much earlier than 120-day model states. General-benefit mandate without mandatory third-party standard/public report. Benefit director mandatory but independence not required in chapter. One-year reentry wait after exit. Ordinary director protection automatic.
Primary-source findings with stated qualifications. Official chapters 180/204 published and certified October 1, 2026, through 2025 Wisconsin Act 247; fetched directly after web-tool access error. Selected statutory provisions; not a full case-law, charter or tax audit.
Public report retention floor is three years. Articles can change director/officer benefit-failure protection and weighting rules.
$150 / year, compared filings + minimum taxesFlorida keeps this ordinary shield limited to directors and a default statutory liability rule. Articles can change director/officer benefit-failure protection and weighting rules.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 19 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 9 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Florida: General public benefit is required; specific public benefits are optional and do not narrow it.
Why this changes the score: Florida offers Benefit corporation; also social purpose corporation.
Florida offers Benefit corporation; also social purpose corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Florida: Automatic director-only monetary-liability limitation under section 607.0831: breach plus criminal violation (reasonable-lawfulness exception), improper benefit, unlawful distribution, internal conscious disregard/willful misconduct, or outsider recklessness/bad faith/malicious or wanton misconduct. Officers are not within this director immunity provision; section 607.0841 assigns officer duties, and section 607.0202 supplies no equivalent express officer-exculpation authorization. Separate indemnification and insurance mechanisms have different conditions. Benefit-specific rule: Company is not liable under benefit part for monetary damages for benefit failure. Director/officer benefit-failure monetary protection applies unless articles provide otherwise; ordinary duties remain.
Why this changes the score: Florida keeps this ordinary shield limited to directors and a default statutory liability rule. Articles can change director/officer benefit-failure protection and weighting rules.
Florida has an identified director monetary-protection provision in the compared scope, which earns this credit. Automatic director-only monetary-liability limitation under section 607.0831: breach plus criminal violation (reasonable-lawfulness exception), improper benefit, unlawful distribution, internal conscious disregard/willful misconduct, or outsider recklessness/bad faith/malicious or wanton misconduct. Officers are not within this director immunity provision; section 607.0841 assigns officer duties, and section 607.0202 supplies no equivalent express officer-exculpation authorization. Separate indemnification and insurance mechanisms have different conditions.
Florida does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Florida has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Florida earns the benefit-specific credit for company. Company is not liable under benefit part for monetary damages for benefit failure. Director/officer benefit-failure monetary protection applies unless articles provide otherwise; ordinary duties remain.
Florida earns the benefit-specific credit for directors. Company is not liable under benefit part for monetary damages for benefit failure. Director/officer benefit-failure monetary protection applies unless articles provide otherwise; ordinary duties remain.
Florida earns the benefit-specific credit for officers. Company is not liable under benefit part for monetary damages for benefit failure. Director/officer benefit-failure monetary protection applies unless articles provide otherwise; ordinary duties remain.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Florida: Annual shareholder delivery within 120 days after year-end or with other annual report. Each report must stay on public website at least three years; latest free copy if no website. Shareholders can obtain summary court enforcement and costs. No state benefit-report filing specified. Assessment rule: Annual benefit report must be prepared using a third-party standard. Neither annual report nor assessment requires third-party audit or certification.
Why this changes the score: Florida: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Florida: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Florida: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Florida: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Florida has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Florida: Registry reporting: $150 per year on an annualized basis. Minimum tax/license used here: $0. Small active domestic C corporation in a regular year with no Florida net taxable income after state modifications, allocation/apportionment and its available exemption. This excludes the annual report and all non-income operating taxes.
Why this changes the score: Florida has a compared recurring floor of $150 per year, including $0 in identified minimum tax/license charges.
Florida has a compared recurring floor of $150 per year, including $0 in identified minimum tax/license charges. Small active domestic C corporation in a regular year with no Florida net taxable income after state modifications, allocation/apportionment and its available exemption. This excludes the annual report and all non-income operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Florida: Becoming a benefit company: 2/3 each class/series. Entry, exit and specific-benefit amendments require 2/3 of each class/series including nonvoting. Appraisal rights accompany entry/exit. Asset-sale minimum-vote rule has ordinary-course, court-order and distribution-of-proceeds exceptions. Changing back: 2/3 each class/series
Why this changes the score: Florida entry uses 2/3 each class/series; exit uses 2/3 each class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Florida: becoming a benefit company requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Florida: changing back requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Florida: Directors shall consider the listed stakeholders and purposes. Neither priority nor equal weighting is required unless articles require it; benefit-director role is optional. Disclosure: Annual shareholder delivery within 120 days after year-end or with other annual report. Each report must stay on public website at least three years; latest free copy if no website. Shareholders can obtain summary court enforcement and costs. No state benefit-report filing specified. Enforcement: Corporation directly; derivative claim by any shareholder of record on act/inaction date, a director, 5% parent-equity holders, or charter/bylaw designees.
Why this changes the score: Florida requires public access to the report. Public report retention floor is three years. Any contemporaneous record shareholder can enforce; no percentage floor. Florida also offers a distinct social purpose corporation; this record compares the benefit corporation option, which requires general public benefit.
Florida requires report access for people outside the company, so it earns public-access credit. Annual shareholder delivery within 120 days after year-end or with other annual report. Each report must stay on public website at least three years; latest free copy if no website. Shareholders can obtain summary court enforcement and costs. No state benefit-report filing specified.
Florida: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Florida: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Florida makes a mission duty mandatory, so it earns this credit. Directors shall consider the listed stakeholders and purposes. Neither priority nor equal weighting is required unless articles require it; benefit-director role is optional.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Florida’s full guide and sources ↓Compared variant: Benefit corporation. General-benefit mandatory stakeholder model
General public benefit is required; specific public benefits are optional and do not narrow it.
Directors shall consider the listed stakeholders and purposes. Neither priority nor equal weighting is required unless articles require it; benefit-director role is optional.
Annual shareholder delivery within 120 days after year-end or with other annual report. Each report must stay on public website at least three years; latest free copy if no website. Shareholders can obtain summary court enforcement and costs. No state benefit-report filing specified.
Annual benefit report must be prepared using a third-party standard. Neither annual report nor assessment requires third-party audit or certification.
Corporation directly; derivative claim by any shareholder of record on act/inaction date, a director, 5% parent-equity holders, or charter/bylaw designees.
Company is not liable under benefit part for monetary damages for benefit failure. Director/officer benefit-failure monetary protection applies unless articles provide otherwise; ordinary duties remain.
Automatic director-only monetary-liability limitation under section 607.0831: breach plus criminal violation (reasonable-lawfulness exception), improper benefit, unlawful distribution, internal conscious disregard/willful misconduct, or outsider recklessness/bad faith/malicious or wanton misconduct. Officers are not within this director immunity provision; section 607.0841 assigns officer duties, and section 607.0202 supplies no equivalent express officer-exculpation authorization. Separate indemnification and insurance mechanisms have different conditions.
Entry: 2/3 each class/series. Exit: 2/3 each class/series. Entry, exit and specific-benefit amendments require 2/3 of each class/series including nonvoting. Appraisal rights accompany entry/exit. Asset-sale minimum-vote rule has ordinary-course, court-order and distribution-of-proceeds exceptions.
Ordinary: $150 / annual. Timely ordinary annual report for a profit corporation is $150. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Florida's corporate income/franchise tax is 5.5% for tax years beginning on or after January 1, 2022. The state calculates adjusted federal income, apportions and allocates it to Florida, then applies a $50,000 exemption; controlled groups share that exemption. The tax called corporate income/franchise tax is income-based; the published formula has no separate fixed-dollar annual franchise minimum. A $0 income-tax calculation does not eliminate the separate profit-corporation annual-report fee or other operating taxes. Corporations generally must file even when no income tax is due. Florida's ordinary apportionment weights property 25%, payroll 25% and sales 50%, with separately allocated nonbusiness income and special rules. A corporation doing business, earning income or existing in Florida can have a filing obligation; an out-of-state charter is not an exemption. Compared yearly minimum addition: $0. Small active domestic C corporation in a regular year with no Florida net taxable income after state modifications, allocation/apportionment and its available exemption. This excludes the annual report and all non-income operating taxes.
Public report retention floor is three years. Articles can change director/officer benefit-failure protection and weighting rules. Any contemporaneous record shareholder can enforce; no percentage floor. Florida also offers a distinct social purpose corporation; this record compares the benefit corporation option, which requires general public benefit.
Primary-source findings with stated qualifications. Selected statutory provisions; not a full case-law, charter or tax audit.
No separate independent benefit director required for a private startup. Charter can override some default benefit-duty damages protection.
$85 / year, compared filings + minimum taxesMaine keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. No separate independent benefit director required for a private startup. Charter can override some default benefit-duty damages protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Maine: General public benefit required; specific charter benefits optional and cannot replace the general obligation.
Why this changes the score: Maine offers Benefit corporation.
Maine offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Maine: Charter director damages exculpation excludes unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation. No ordinary officer clause in §202. Benefit-specific rule: Corporation mission-failure damages barred. Director/officer compliant-duty and mission-failure monetary protection applies unless charter provides otherwise. Special benefit-director immunity excludes self-dealing, wilful misconduct and knowing violations.
Why this changes the score: Maine keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. No separate independent benefit director required for a private startup. Charter can override some default benefit-duty damages protection.
Maine has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter director damages exculpation excludes unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation. No ordinary officer clause in §202.
Maine does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Maine requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Maine earns the benefit-specific credit for company. Corporation mission-failure damages barred. Director/officer compliant-duty and mission-failure monetary protection applies unless charter provides otherwise. Special benefit-director immunity excludes self-dealing, wilful misconduct and knowing violations.
Maine earns the benefit-specific credit for directors. Corporation mission-failure damages barred. Director/officer compliant-duty and mission-failure monetary protection applies unless charter provides otherwise. Special benefit-director immunity excludes self-dealing, wilful misconduct and knowing violations.
Maine earns the benefit-specific credit for officers. Corporation mission-failure damages barred. Director/officer compliant-duty and mission-failure monetary protection applies unless charter provides otherwise. Special benefit-director immunity excludes self-dealing, wilful misconduct and knowing violations.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Maine: Annual to shareholders by earlier of 120 days or other annual report. All reports public online; free latest report on request if no website. No state benefit-report filing. Assessment rule: Annual third-party standard assessment required; external audit/certification not required.
Why this changes the score: Maine: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Maine: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Maine: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Maine: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Maine has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Maine: Registry reporting: $85 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation in a regular year with no Maine corporate taxable income after state modifications and apportionment. Excludes the domestic annual report and other operating taxes.
Why this changes the score: Maine has a compared recurring floor of $85 per year, including $0 in identified minimum tax/license charges.
Maine has a compared recurring floor of $85 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular year with no Maine corporate taxable income after state modifications and apportionment. Excludes the domestic annual report and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Maine: Becoming a benefit company: two-thirds of each class, including nonvoting. Entry/exit and specified transactions require two-thirds of every class/series, including otherwise nonvoting interests; no special legacy-lock provision identified. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: Maine entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Maine: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Maine: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Maine: Mandatory stakeholder consideration; charter can prioritize mission. Independent benefit director required for statutory public corporations (listed/covered/Exchange Act registered securities), optional for others; professional corporations have an independence exception. Disclosure: Annual to shareholders by earlier of 120 days or other annual report. All reports public online; free latest report on request if no website. No state benefit-report filing. Enforcement: Corporation; derivative 2% of class/series collectively at challenged act, directors, 5% parent equity, and charter/bylaw designees.
Why this changes the score: Maine requires public access to the report. 2% shareholder/5% parent enforcement is more accessible than Connecticut’s thresholds.
Maine requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report. All reports public online; free latest report on request if no website. No state benefit-report filing.
Maine: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Maine: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Maine makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter can prioritize mission. Independent benefit director required for statutory public corporations (listed/covered/Exchange Act registered securities), optional for others; professional corporations have an independence exception.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Maine’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / mandatory-stakeholder model
General public benefit required; specific charter benefits optional and cannot replace the general obligation.
Mandatory stakeholder consideration; charter can prioritize mission. Independent benefit director required for statutory public corporations (listed/covered/Exchange Act registered securities), optional for others; professional corporations have an independence exception.
Annual to shareholders by earlier of 120 days or other annual report. All reports public online; free latest report on request if no website. No state benefit-report filing.
Annual third-party standard assessment required; external audit/certification not required.
Corporation; derivative 2% of class/series collectively at challenged act, directors, 5% parent equity, and charter/bylaw designees.
Corporation mission-failure damages barred. Director/officer compliant-duty and mission-failure monetary protection applies unless charter provides otherwise. Special benefit-director immunity excludes self-dealing, wilful misconduct and knowing violations.
Charter director damages exculpation excludes unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation. No ordinary officer clause in §202.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Entry/exit and specified transactions require two-thirds of every class/series, including otherwise nonvoting interests; no special legacy-lock provision identified.
Ordinary: $85 / annual. Domestic business corporation; foreign corporation $150. Due June 1. Benefit filing: $0 / annual. No state benefit-report filing. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Maine's graduated corporate rates are 3.5% through $350,000 of adjusted federal taxable income, 7.93% on the next amount through $1.05 million, 8.33% through $3.5 million, and 8.93% above $3.5 million. These are marginal brackets, with multistate apportionment; special financial and insurance regimes differ. The ordinary corporation-income rate schedule has no fixed-dollar minimum. Maine's franchise tax applies to qualifying financial institutions, not the ordinary civic-technology C corporation. The domestic annual report remains a separate registry charge. MRS's April 2026 FAQ says Maine organization or commercial domicile creates nexus. Foreign corporations can exceed $250,000 property, $250,000 payroll, $500,000 Maine sales or a 25% factor threshold, subject to applicable protections. Filing depends on nexus, Maine income and federal corporate-income classification. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation in a regular year with no Maine corporate taxable income after state modifications and apportionment. Excludes the domestic annual report and other operating taxes.
No separate independent benefit director required for a private startup. Charter can override some default benefit-duty damages protection. 2% shareholder/5% parent enforcement is more accessible than Connecticut’s thresholds.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Selected statutory provisions; not a full case-law, charter or tax audit.
2% of a class enforcement floor, not any shareholder. State-filed annual benefit report plus biennial capital-based occupation tax.
$38 / year, compared filings + minimum taxesNebraska keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Mandatory independent benefit director only if publicly traded.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Nebraska: General public benefit mandatory; specific public benefits optional.
Why this changes the score: Nebraska offers Benefit corporation.
Nebraska offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Nebraska: Director-only charter monetary limitation; improper financial benefit, intentional harm, unlawful distributions, intentional criminal violation excepted. Benefit-specific rule: Company money damages barred under benefit Act for benefit failure. Directors and officers have compliant-conduct and benefit-failure monetary protection unless articles/bylaws say otherwise; benefit-director exceptions include self-dealing/willful misconduct/known illegality.
Why this changes the score: Nebraska keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Mandatory independent benefit director only if publicly traded.
Nebraska has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only charter monetary limitation; improper financial benefit, intentional harm, unlawful distributions, intentional criminal violation excepted.
Nebraska does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Nebraska requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Nebraska earns the benefit-specific credit for company. Company money damages barred under benefit Act for benefit failure. Directors and officers have compliant-conduct and benefit-failure monetary protection unless articles/bylaws say otherwise; benefit-director exceptions include self-dealing/willful misconduct/known illegality.
Nebraska earns the benefit-specific credit for directors. Company money damages barred under benefit Act for benefit failure. Directors and officers have compliant-conduct and benefit-failure monetary protection unless articles/bylaws say otherwise; benefit-director exceptions include self-dealing/willful misconduct/known illegality.
Nebraska earns the benefit-specific credit for officers. Company money damages barred under benefit Act for benefit failure. Directors and officers have compliant-conduct and benefit-failure monetary protection unless articles/bylaws say otherwise; benefit-director exceptions include self-dealing/willful misconduct/known illegality.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Nebraska: Annual shareholder report within 120 days/year-end or other annual report delivery; all reports public website/latest free copy; concurrently state-filed. Specified compensation/proprietary information may be redacted. Assessment rule: Annual social/environmental assessment against third-party standard required. No report/assessment audit or certification required.
Why this changes the score: Nebraska: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Nebraska: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Nebraska: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Nebraska: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Nebraska has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Nebraska: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $13. Small active domestic stock C corporation, paid-up capital at most $10,000 and no Nebraska taxable income: $26 occupation tax each even year, annualized to $13/year for comparison; $0 ordinary income tax. Excludes report fees and other operating taxes.
Why this changes the score: Nebraska has a compared recurring floor of $38 per year, including $13 in identified minimum tax/license charges.
Nebraska has a compared recurring floor of $38 per year, including $13 in identified minimum tax/license charges. Small active domestic stock C corporation, paid-up capital at most $10,000 and no Nebraska taxable income: $26 occupation tax each even year, annualized to $13/year for comparison; $0 ordinary income tax. Excludes report fees and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Nebraska: Becoming a benefit company: 2/3 each class/series. 2/3 every class/series including nonvoting for entry/exit and covered nonordinary asset sale, plus other required votes. Changing back: 2/3 each class/series
Why this changes the score: Nebraska entry uses 2/3 each class/series; exit uses 2/3 each class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Nebraska: becoming a benefit company requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Nebraska: changing back requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Nebraska: Shall consider listed stakeholders; priority optional in articles. Independent benefit director mandatory only for publicly traded corporations, optional otherwise. Disclosure: Annual shareholder report within 120 days/year-end or other annual report delivery; all reports public website/latest free copy; concurrently state-filed. Specified compensation/proprietary information may be redacted. Enforcement: Company directly; derivative 2% class/series holders at challenged act, director, 5% parent, or charter/bylaw designees.
Why this changes the score: Nebraska requires public access to the report. 2% of a class enforcement floor, not any shareholder. State-filed annual benefit report plus biennial capital-based occupation tax. Mandatory independent benefit director only if publicly traded.
Nebraska requires report access for people outside the company, so it earns public-access credit. Annual shareholder report within 120 days/year-end or other annual report delivery; all reports public website/latest free copy; concurrently state-filed. Specified compensation/proprietary information may be redacted.
Nebraska: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Nebraska: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Nebraska makes a mission duty mandatory, so it earns this credit. Shall consider listed stakeholders; priority optional in articles. Independent benefit director mandatory only for publicly traded corporations, optional otherwise.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Nebraska’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit mandatory stakeholder model; state-filed annual report
General public benefit mandatory; specific public benefits optional.
Shall consider listed stakeholders; priority optional in articles. Independent benefit director mandatory only for publicly traded corporations, optional otherwise.
Annual shareholder report within 120 days/year-end or other annual report delivery; all reports public website/latest free copy; concurrently state-filed. Specified compensation/proprietary information may be redacted.
Annual social/environmental assessment against third-party standard required. No report/assessment audit or certification required.
Company directly; derivative 2% class/series holders at challenged act, director, 5% parent, or charter/bylaw designees.
Company money damages barred under benefit Act for benefit failure. Directors and officers have compliant-conduct and benefit-failure monetary protection unless articles/bylaws say otherwise; benefit-director exceptions include self-dealing/willful misconduct/known illegality.
Director-only charter monetary limitation; improper financial benefit, intentional harm, unlawful distributions, intentional criminal violation excepted.
Entry: 2/3 each class/series. Exit: 2/3 each class/series. 2/3 every class/series including nonvoting for entry/exit and covered nonordinary asset sale, plus other required votes.
Ordinary: $0 / biennial. No separate original biennial corporation report filing charge: the required reporting payment is the occupation tax under 21-301/21-303, minimum $26 in each even year for paid-up capital at most $10,000. It is classified under occupation tax below and counted once. The agency online tax-report schedule reproduces exactly those occupation-tax tiers. The $30 biennial-report amendment/correction fee applies only to amendments, not the original report. Benefit filing: $25 / annual. Separate annual benefit report $25 online/$30 in-office. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
For tax years beginning in 2026, Nebraska ordinary corporate income tax is a flat 4.55% of Nebraska taxable income. The enacted rate becomes 3.99% for tax years beginning on or after January 1, 2027; the 2025 rate was 5.20%. A domestic for-profit corporation registered on January 1 owes a biennial occupation tax in each even-numbered year. The minimum is $26 when paid-up capital stock is at most $10,000; higher capital produces a statutory tiered tax. $26 every two years is $13 per year only as an annualized comparison, not an annual bill. Ordinary income tax and report filing fees are separate. Nebraska taxes the Nebraska-source portion of corporate taxable income. Multistate businesses generally use sales-only apportionment and unitary groups file combined returns. Financial-institution franchise tax is a separate industry regime. The occupation tax is a charter/registration obligation and is not eliminated by having no taxable income. Compared yearly minimum addition: $13. Small active domestic stock C corporation, paid-up capital at most $10,000 and no Nebraska taxable income: $26 occupation tax each even year, annualized to $13/year for comparison; $0 ordinary income tax. Excludes report fees and other operating taxes.
2% of a class enforcement floor, not any shareholder. State-filed annual benefit report plus biennial capital-based occupation tax. Mandatory independent benefit director only if publicly traded.
Primary-source findings with stated qualifications. Selected statutory provisions; not a full case-law, charter or tax audit.
Broad default ordinary director AND officer damages rule, unlike opt-in director-only states. Mandatory annual public third-party assessment adds work compared with Delaware.
$650 / year, compared filings + minimum taxesNevada adds ordinary officer coverage and a default statutory liability rule. Broad default ordinary director AND officer damages rule, unlike opt-in director-only states.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 25 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 3 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Nevada: General public benefit required; specific benefits optional.
Why this changes the score: Nevada offers Benefit corporation.
Nevada offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Nevada: Default covered director/officer damages liability to corporation, stockholders or creditors requires rebutting business judgment plus breach involving intentional misconduct, fraud or knowing illegality. Articles and listed statutory exceptions can change coverage. Benefit-specific rule: Directors and officers have compliant-duty and benefit-failure monetary protections, subject to stated conditions; company has no mission-failure damages liability.
Why this changes the score: Nevada adds ordinary officer coverage and a default statutory liability rule. Broad default ordinary director AND officer damages rule, unlike opt-in director-only states.
Nevada has an identified director monetary-protection provision in the compared scope, which earns this credit. Default covered director/officer damages liability to corporation, stockholders or creditors requires rebutting business judgment plus breach involving intentional misconduct, fraud or knowing illegality. Articles and listed statutory exceptions can change coverage.
Nevada extends ordinary protection to officers, which earns officer-scope credit. Default covered director/officer damages liability to corporation, stockholders or creditors requires rebutting business judgment plus breach involving intentional misconduct, fraud or knowing illegality. Articles and listed statutory exceptions can change coverage.
Nevada has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Nevada earns the benefit-specific credit for company. Directors and officers have compliant-duty and benefit-failure monetary protections, subject to stated conditions; company has no mission-failure damages liability.
Nevada earns the benefit-specific credit for directors. Directors and officers have compliant-duty and benefit-failure monetary protections, subject to stated conditions; company has no mission-failure damages liability.
Nevada earns the benefit-specific credit for officers. Directors and officers have compliant-duty and benefit-failure monetary protections, subject to stated conditions; company has no mission-failure damages liability.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Nevada: Annual shareholder report, generally within 120 days; public website or free copies on request. Permitted financial, proprietary and compensation redactions. No separate state benefit filing identified. Assessment rule: Independent third-party assessment standard required; paid certification or audit is not.
Why this changes the score: Nevada: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Nevada: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Nevada: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Nevada: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Nevada has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Nevada: Registry reporting: $150 per year on an annualized basis. Minimum tax/license used here: $500. Ordinary domestic corporation, regular renewal year, Nevada receipts below $4 million and general-business quarterly net wages no more than $50,000. Includes $500 business license additional to registry list fees; excludes variable taxes and local licenses.
Why this changes the score: Nevada has a compared recurring floor of $650 per year, including $500 in identified minimum tax/license charges.
Nevada has a compared recurring floor of $650 per year, including $500 in identified minimum tax/license charges. Ordinary domestic corporation, regular renewal year, Nevada receipts below $4 million and general-business quarterly net wages no more than $50,000. Includes $500 business license additional to registry list fees; excludes variable taxes and local licenses. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Nevada: Becoming a benefit company: 2/3 each class. Entry and exit need two thirds of each class/series, including nonvoting shares. Entry carries statutory dissenters’ appraisal rights. Changing back: 2/3 each class
Why this changes the score: Nevada entry uses 2/3 each class; exit uses 2/3 each class. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Nevada: becoming a benefit company requires 2/3 each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Nevada: changing back requires 2/3 each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Nevada: Mandatory consideration of enumerated stakeholders; no automatic priority unless articles prioritize a benefit. Disclosure: Annual shareholder report, generally within 120 days; public website or free copies on request. Permitted financial, proprietary and compensation redactions. No separate state benefit filing identified. Enforcement: Company directly; derivative standing includes directors, 2% of a class/series, 5% parent owners, and charter/bylaw designees. Percentage gate does not exclude these other claimants.
Why this changes the score: Nevada requires public access to the report. Mandatory annual public third-party assessment adds work compared with Delaware. Known annual list plus business-license minimum is $650, not just the $150 reporting fee.
Nevada requires report access for people outside the company, so it earns public-access credit. Annual shareholder report, generally within 120 days; public website or free copies on request. Permitted financial, proprietary and compensation redactions. No separate state benefit filing identified.
Nevada: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Nevada: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Nevada makes a mission duty mandatory, so it earns this credit. Mandatory consideration of enumerated stakeholders; no automatic priority unless articles prioritize a benefit.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Nevada’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit stakeholder consideration
General public benefit required; specific benefits optional.
Mandatory consideration of enumerated stakeholders; no automatic priority unless articles prioritize a benefit.
Annual shareholder report, generally within 120 days; public website or free copies on request. Permitted financial, proprietary and compensation redactions. No separate state benefit filing identified.
Independent third-party assessment standard required; paid certification or audit is not.
Company directly; derivative standing includes directors, 2% of a class/series, 5% parent owners, and charter/bylaw designees. Percentage gate does not exclude these other claimants.
Directors and officers have compliant-duty and benefit-failure monetary protections, subject to stated conditions; company has no mission-failure damages liability.
Default covered director/officer damages liability to corporation, stockholders or creditors requires rebutting business judgment plus breach involving intentional misconduct, fraud or knowing illegality. Articles and listed statutory exceptions can change coverage.
Entry: 2/3 each class. Exit: 2/3 each class. Entry and exit need two thirds of each class/series, including nonvoting shares. Entry carries statutory dissenters’ appraisal rights.
Ordinary: $150 / annual. Minimum annual officer/director list; stock structure can increase fee. Benefit filing: $0 / none. No separate state benefit-report fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Nevada has no general corporate net-income tax. Commerce Tax applies to Nevada gross revenue above $4 million per fiscal year, at industry rates of 0.051%-0.331%. General-business Modified Business Tax is 1.17% on quarterly wages above $50,000 after applicable health-benefit deductions; filing can still be required below the threshold. Corporations generally pay a $500 state business license annually. This license is filed with the annual list but is expressly additional to the annual-list fee; the absence of corporate income tax does not remove this charge. Nevada-sourced gross revenue, industry classification and Nevada payroll matter. Other operating states can tax apportioned income even though Nevada itself has no corporate income tax. Compared yearly minimum addition: $500. Ordinary domestic corporation, regular renewal year, Nevada receipts below $4 million and general-business quarterly net wages no more than $50,000. Includes $500 business license additional to registry list fees; excludes variable taxes and local licenses.
Broad default ordinary director AND officer damages rule, unlike opt-in director-only states. Mandatory annual public third-party assessment adds work compared with Delaware. Known annual list plus business-license minimum is $650, not just the $150 reporting fee.
Current code. No quantified comparison of litigation outcomes or company-specific taxes. Selected statutory provisions; not a full case-law, charter or tax audit.
Both directors and officers eligible for ordinary charter exculpation. Missed benefit reporting has dissolution consequences; court mission finding can revoke benefit status.
$135 / year, compared filings + minimum taxesNew Hampshire adds ordinary officer coverage; the charter must elect the ordinary protection. Both directors and officers eligible for ordinary charter exculpation.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 22 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 9 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
New Hampshire: General benefit required; specific charter benefits optional.
Why this changes the score: New Hampshire offers Benefit corporation.
New Hampshire offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
New Hampshire: Charter may exculpate directors and officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation. Benefit-specific rule: Corporation mission-failure damages barred; director/officer compliant-duty and mission-failure monetary protection unless charter/bylaws override.
Why this changes the score: New Hampshire adds ordinary officer coverage; the charter must elect the ordinary protection. Both directors and officers eligible for ordinary charter exculpation.
New Hampshire has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter may exculpate directors and officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation.
New Hampshire extends ordinary protection to officers, which earns officer-scope credit. Charter may exculpate directors and officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation.
New Hampshire requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
New Hampshire earns the benefit-specific credit for company. Corporation mission-failure damages barred; director/officer compliant-duty and mission-failure monetary protection unless charter/bylaws override.
New Hampshire earns the benefit-specific credit for directors. Corporation mission-failure damages barred; director/officer compliant-duty and mission-failure monetary protection unless charter/bylaws override.
New Hampshire earns the benefit-specific credit for officers. Corporation mission-failure damages barred; director/officer compliant-duty and mission-failure monetary protection unless charter/bylaws override.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
New Hampshire: Annual to shareholders by earlier of 120 days or other annual report; all reports public online, latest free on request if no website. State copy with $35. Failure to make report available triggers statutory administrative dissolution. Assessment rule: Third-party standard assessment required. Statute says report and assessment shall not be audited/certified by a third party; certification of report is not required.
Why this changes the score: New Hampshire: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
New Hampshire: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
New Hampshire: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New Hampshire: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
New Hampshire has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
New Hampshire: Registry reporting: $135 per year on an annualized basis. Minimum tax/license used here: $0. Small active domestic C corporation in a regular 2026 period, no taxable profit, gross business income no more than $109,000, and both gross receipts and enterprise-value base no more than $298,000. Merely having no profit is insufficient to exclude BET.
Why this changes the score: New Hampshire has a compared recurring floor of $135 per year, including $0 in identified minimum tax/license charges.
New Hampshire has a compared recurring floor of $135 per year, including $0 in identified minimum tax/license charges. Small active domestic C corporation in a regular 2026 period, no taxable profit, gross business income no more than $109,000, and both gross receipts and enterprise-value base no more than $298,000. Merely having no profit is insufficient to exclude BET. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
New Hampshire: Becoming a benefit company: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and covered transactions. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: New Hampshire entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
New Hampshire: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
New Hampshire: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
New Hampshire: Mandatory stakeholder consideration; charter may prioritize mission interests. Independent benefit director required only if publicly traded; optional if private. Disclosure: Annual to shareholders by earlier of 120 days or other annual report; all reports public online, latest free on request if no website. State copy with $35. Failure to make report available triggers statutory administrative dissolution. Enforcement: Corporation; collective 2% of class/series at challenged act, directors, 5% parent equity, charter/bylaw designees. Secretary may revoke benefit status after court determination of mission failure.
Why this changes the score: New Hampshire requires public access to the report. Missed benefit reporting has dissolution consequences; court mission finding can revoke benefit status. Annual state reporting requires both $100 ordinary report and $35 benefit report.
New Hampshire requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report; all reports public online, latest free on request if no website. State copy with $35. Failure to make report available triggers statutory administrative dissolution.
New Hampshire: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
New Hampshire: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New Hampshire makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter may prioritize mission interests. Independent benefit director required only if publicly traded; optional if private.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download New Hampshire’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / mandatory-stakeholder model with state sanctions
General benefit required; specific charter benefits optional.
Mandatory stakeholder consideration; charter may prioritize mission interests. Independent benefit director required only if publicly traded; optional if private.
Annual to shareholders by earlier of 120 days or other annual report; all reports public online, latest free on request if no website. State copy with $35. Failure to make report available triggers statutory administrative dissolution.
Third-party standard assessment required. Statute says report and assessment shall not be audited/certified by a third party; certification of report is not required.
Corporation; collective 2% of class/series at challenged act, directors, 5% parent equity, charter/bylaw designees. Secretary may revoke benefit status after court determination of mission failure.
Corporation mission-failure damages barred; director/officer compliant-duty and mission-failure monetary protection unless charter/bylaws override.
Charter may exculpate directors and officers against corporation/shareholder monetary claims except unentitled financial benefit, intentional harm, unlawful distributions and intentional criminal-law violation.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and covered transactions.
Ordinary: $100 / annual. Domestic/foreign for-profit corporate annual report. Benefit filing: $35 / annual. Separate benefit-report fee; in addition to regular $100 annual report. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
New Hampshire Business Profits Tax (BPT) is 7.5% for taxable periods ending on or after December 31, 2023. For periods beginning in 2025–2026, filing is required above $109,000 of gross business income from all activities. Income is generally apportioned by single sales factor, and unitary businesses use combined reporting. Business Enterprise Tax (BET) is separately 0.55% of the taxable enterprise-value base, generally compensation, interest and dividends. For periods beginning in 2025–2026, the filing threshold is over $298,000 of gross receipts or enterprise-value base. BET can apply without profit and may credit BPT. No single fixed annual business-tax minimum is stated. DRA taxes gain-or-profit organizations carrying on New Hampshire business activity, not just incorporated entities. Filing thresholds use everywhere activity while tax bases are apportioned to the state. Cross-state operations, unitary membership and payroll/dividend/interest payments must be tested separately. Compared yearly minimum addition: $0. Small active domestic C corporation in a regular 2026 period, no taxable profit, gross business income no more than $109,000, and both gross receipts and enterprise-value base no more than $298,000. Merely having no profit is insufficient to exclude BET.
Both directors and officers eligible for ordinary charter exculpation. Missed benefit reporting has dissolution consequences; court mission finding can revoke benefit status. Annual state reporting requires both $100 ordinary report and $35 benefit report.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Selected statutory provisions; not a full case-law, charter or tax audit.
Biennial shareholder-only report default. Third-party standard/certification not required.
$0 / year, compared filings + minimum taxesTexas adds ordinary officer coverage; the charter must elect the ordinary protection. Ordinary charter exculpation includes officers.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 14 |
| Less paperwork | 23 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 6 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Texas: PBC intended to operate responsibly/sustainably and produce benefit(s) specified in certificate; broad general benefit is not mandatory.
Why this changes the score: Texas offers Public benefit corporation.
Texas offers Public benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Texas: Charter may limit director AND officer monetary liability to organization/owners: managerial official includes both. Exceptions loyalty, bad faith constituting duty breach/intentional misconduct/known illegality, improper benefit, and liability expressly imposed by statute. Broader officer scope than director-only model states. Benefit-specific rule: No blanket corporate/director/officer benefit-failure damages bar in Subchapter S. Conditional director decision safe harbor and optional charter classification safe harbor interact with ordinary exculpation.
Why this changes the score: Texas adds ordinary officer coverage; the charter must elect the ordinary protection. Ordinary charter exculpation includes officers.
Texas has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter may limit director AND officer monetary liability to organization/owners: managerial official includes both. Exceptions loyalty, bad faith constituting duty breach/intentional misconduct/known illegality, improper benefit, and liability expressly imposed by statute. Broader officer scope than director-only model states.
Texas extends ordinary protection to officers, which earns officer-scope credit. Charter may limit director AND officer monetary liability to organization/owners: managerial official includes both. Exceptions loyalty, bad faith constituting duty breach/intentional misconduct/known illegality, improper benefit, and liability expressly imposed by statute. Broader officer scope than director-only model states.
Texas requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Texas protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. No blanket corporate/director/officer benefit-failure damages bar in Subchapter S. Conditional director decision safe harbor and optional charter classification safe harbor interact with ordinary exculpation.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Texas: At least biennial shareholder statement with objectives, standards, facts and assessment. Charter/bylaws may require more frequent or public report; public/state benefit filing is not statutory default. Assessment rule: No mandatory third-party standard in PBC reporting statute. No mandatory certification in PBC reporting statute.
Why this changes the score: Texas: At least biennial; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Texas: At least biennial. This gets more ease-of-operation credit than an annual mandate because reporting is less frequent or not mandatory.
Texas: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Texas: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Texas has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Texas: Registry reporting: $0 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation with annualized total revenue from its entire business, including any required combined group, at or below $2,650,000 for its 2026/2027 report: $0 franchise tax. PIR/OIR remains required. Excludes other operating taxes and fees.
Why this changes the score: Texas has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges.
Texas has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation with annualized total revenue from its entire business, including any required combined group, at or below $2,650,000 for its 2026/2027 report: $0 franchise tax. PIR/OIR remains required. Excludes other operating taxes and fees. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Texas: Becoming a benefit company: 2/3 outstanding entitled vote. 2/3 outstanding shares entitled to vote, class/series voting when otherwise required, for entry/exit and protected certificate provisions; dissent/appraisal rights. Mission/report provisions can survive equivalent-entity transaction exception. Changing back: 2/3 outstanding entitled vote
Why this changes the score: Texas entry uses 2/3 outstanding entitled vote; exit uses 2/3 outstanding entitled vote. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Texas: becoming a benefit company requires 2/3 outstanding entitled vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Texas: changing back requires 2/3 outstanding entitled vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Texas: Board shall balance shareholders, materially affected persons and chosen benefits. Informed/disinterested/not-irrational decision satisfies duty. Charter may opt in to safe harbor for disinterested failures as not bad faith/loyalty breach; no beneficiary duty. Disclosure: At least biennial shareholder statement with objectives, standards, facts and assessment. Charter/bylaws may require more frequent or public report; public/state benefit filing is not statutory default. Enforcement: Derivative balancing action by shareholders owning 2% total or listed lesser 2%/$2m.
Why this changes the score: Texas does not require public access in this compared variant. Biennial shareholder-only report default.
Texas has no mandatory public access in the compared variant, so it gets no public-access credit. Voluntary publication is still possible. At least biennial shareholder statement with objectives, standards, facts and assessment. Charter/bylaws may require more frequent or public report; public/state benefit filing is not statutory default.
Texas: At least biennial. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Texas: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Texas makes a mission duty mandatory, so it earns this credit. Board shall balance shareholders, materially affected persons and chosen benefits. Informed/disinterested/not-irrational decision satisfies duty. Charter may opt in to safe harbor for disinterested failures as not bad faith/loyalty breach; no beneficiary duty.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Texas’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Specific-benefit three-interest balancing; biennial private default
PBC intended to operate responsibly/sustainably and produce benefit(s) specified in certificate; broad general benefit is not mandatory.
Board shall balance shareholders, materially affected persons and chosen benefits. Informed/disinterested/not-irrational decision satisfies duty. Charter may opt in to safe harbor for disinterested failures as not bad faith/loyalty breach; no beneficiary duty.
At least biennial shareholder statement with objectives, standards, facts and assessment. Charter/bylaws may require more frequent or public report; public/state benefit filing is not statutory default.
No mandatory third-party standard in PBC reporting statute. No mandatory certification in PBC reporting statute.
Derivative balancing action by shareholders owning 2% total or listed lesser 2%/$2m.
No blanket corporate/director/officer benefit-failure damages bar in Subchapter S. Conditional director decision safe harbor and optional charter classification safe harbor interact with ordinary exculpation.
Charter may limit director AND officer monetary liability to organization/owners: managerial official includes both. Exceptions loyalty, bad faith constituting duty breach/intentional misconduct/known illegality, improper benefit, and liability expressly imposed by statute. Broader officer scope than director-only model states.
Entry: 2/3 outstanding entitled vote. Exit: 2/3 outstanding entitled vote. 2/3 outstanding shares entitled to vote, class/series voting when otherwise required, for entry/exit and protected certificate provisions; dissent/appraisal rights. Mission/report provisions can survive equivalent-entity transaction exception.
Ordinary: $0 / annual. Annual Comptroller public information report required; no separate ordinary stock-corporation annual report filing fee identified. Franchise tax separate. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Texas taxes the ordinary corporation through a franchise tax on apportioned taxable margin rather than a conventional corporate net-income tax. The applicable margin method and receipts thresholds therefore matter even when the corporation has no net profit. For 2026 and 2027 reports, the franchise no-tax-due threshold is annualized total revenue of $2,650,000 or less. Above it, standard rates are 0.75% of taxable margin, or 0.375% for qualifying retail/wholesale businesses. Eligible entities with revenue at most $20 million can elect EZ computation at 0.331%. No minimum franchise tax applies, and calculated tax below $1,000 is not payable, subject to special rules. PIR/OIR information reporting remains required below the revenue threshold. Texas formation itself brings an ordinary taxable entity into franchise-tax scope. Multistate taxable margin uses Texas receipt apportionment; foreign entities can also have physical or economic nexus. Threshold revenue is total annualized revenue, not just Texas receipts, and combined-group rules can change eligibility. Sales/use, employment, and local/industry taxes remain separate. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation with annualized total revenue from its entire business, including any required combined group, at or below $2,650,000 for its 2026/2027 report: $0 franchise tax. PIR/OIR remains required. Excludes other operating taxes and fees.
Biennial shareholder-only report default. Third-party standard/certification not required. Ordinary charter exculpation includes officers. 2/3 voting shares differs from every class including nonvoting.
Primary-source findings with stated qualifications. Current official resource-server Chapter 21 was read instead of older statute URLs returning an application shell. Registry report itself has no separate required report charge; processing/service charges are excluded. Selected statutory provisions; not a full case-law, charter or tax audit.
Unanimous conversion-in vote; easier ordinary-amendment route out. Automatic director/officer statutory cap, with charter option for zero, is distinct from mandatory charter adoption in most states.
$100 / year, compared filings + minimum taxesVirginia adds ordinary officer coverage and a default statutory liability rule. Automatic director/officer statutory cap, with charter option for zero, is distinct from mandatory charter adoption in most states. Specific benefit can be set by board/bylaw; officer safe harbor depends on the third-party standard.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 19 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 6 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Virginia: General benefit required; specific benefit optional and can be set in charter, bylaws or by board action.
Why this changes the score: Virginia offers Benefit corporation.
Virginia offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Virginia: Directors AND officers have statutory damages cap for corporation/shareholder claims per transaction: greater of $100k or prior-year cash compensation, reducible to zero by charter/shareholder-approved bylaw. Exceptions wilful misconduct, knowing criminal violation, federal/state securities violation. Benefit-specific rule: Directors protected against corporation/shareholder monetary claims for compliant duties or mission failure. Officers protected for actions believed in good-faith business judgment consistent with mission AND third-party standard. No express corporation mission-damages bar.
Why this changes the score: Virginia adds ordinary officer coverage and a default statutory liability rule. Automatic director/officer statutory cap, with charter option for zero, is distinct from mandatory charter adoption in most states. Specific benefit can be set by board/bylaw; officer safe harbor depends on the third-party standard.
Virginia has an identified director monetary-protection provision in the compared scope, which earns this credit. Directors AND officers have statutory damages cap for corporation/shareholder claims per transaction: greater of $100k or prior-year cash compensation, reducible to zero by charter/shareholder-approved bylaw. Exceptions wilful misconduct, knowing criminal violation, federal/state securities violation.
Virginia extends ordinary protection to officers, which earns officer-scope credit. Directors AND officers have statutory damages cap for corporation/shareholder claims per transaction: greater of $100k or prior-year cash compensation, reducible to zero by charter/shareholder-approved bylaw. Exceptions wilful misconduct, knowing criminal violation, federal/state securities violation.
Virginia has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Virginia has no separately credited benefit-specific monetary shield for company. Directors protected against corporation/shareholder monetary claims for compliant duties or mission failure. Officers protected for actions believed in good-faith business judgment consistent with mission AND third-party standard. No express corporation mission-damages bar.
Virginia earns the benefit-specific credit for directors. Directors protected against corporation/shareholder monetary claims for compliant duties or mission failure. Officers protected for actions believed in good-faith business judgment consistent with mission AND third-party standard. No express corporation mission-damages bar.
Virginia has no separately credited benefit-specific monetary shield for officers. Directors protected against corporation/shareholder monetary claims for compliant duties or mission failure. Officers protected for actions believed in good-faith business judgment consistent with mission AND third-party standard. No express corporation mission-damages bar.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Virginia: Annual to shareholders by earlier of 120 days or other annual report. Latest report public online or written/electronic copy on request without website; confidentiality omissions only to extent standard permits. No state benefit filing. Assessment rule: Annual third-party standard assessment required. No mandatory third-party audit/certification in article.
Why this changes the score: Virginia: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Virginia: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Virginia: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Virginia: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Virginia has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Virginia: Registry reporting: $100 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation in a regular full year with no Virginia taxable profit after modifications and apportionment. The SCC annual registration fee and local operating taxes remain separate.
Why this changes the score: Virginia has a compared recurring floor of $100 per year, including $0 in identified minimum tax/license charges.
Virginia has a compared recurring floor of $100 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular full year with no Virginia taxable profit after modifications and apportionment. The SCC annual registration fee and local operating taxes remain separate. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Virginia: Becoming a benefit company: unanimous entitled voting shareholders. Conversion after formation requires ALL shareholders entitled to vote. Exit uses ordinary amendment rule: >two-thirds each entitled voting group by default; charter may lower to majority of votes cast with quorum. Changing back: ordinary amendment rule; >two-thirds default, reducible by charter
Why this changes the score: Virginia entry uses unanimous entitled voting shareholders; exit uses ordinary amendment rule; >two-thirds default, reducible by charter. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Virginia: becoming a benefit company requires unanimous entitled voting shareholders. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Conversion after formation requires ALL shareholders entitled to vote. Exit uses ordinary amendment rule: >two-thirds each entitled voting group by default; charter may lower to majority of votes cast with quorum.
Virginia: changing back requires ordinary amendment rule; >two-thirds default, reducible by charter. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Conversion after formation requires ALL shareholders entitled to vote. Exit uses ordinary amendment rule: >two-thirds each entitled voting group by default; charter may lower to majority of votes cast with quorum.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Virginia: Mandatory stakeholder consideration; charter may prioritize specified benefit. No independent benefit director requirement. Disclosure: Annual to shareholders by earlier of 120 days or other annual report. Latest report public online or written/electronic copy on request without website; confidentiality omissions only to extent standard permits. No state benefit filing. Enforcement: Corporation; any shareholder, director, charter/bylaw designees. No automatic parent-equity standing in article.
Why this changes the score: Virginia requires public access to the report.
Virginia requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report. Latest report public online or written/electronic copy on request without website; confidentiality omissions only to extent standard permits. No state benefit filing.
Virginia: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Virginia: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Virginia makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter may prioritize specified benefit. No independent benefit director requirement.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Virginia’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / unanimous-entry model
General benefit required; specific benefit optional and can be set in charter, bylaws or by board action.
Mandatory stakeholder consideration; charter may prioritize specified benefit. No independent benefit director requirement.
Annual to shareholders by earlier of 120 days or other annual report. Latest report public online or written/electronic copy on request without website; confidentiality omissions only to extent standard permits. No state benefit filing.
Annual third-party standard assessment required. No mandatory third-party audit/certification in article.
Corporation; any shareholder, director, charter/bylaw designees. No automatic parent-equity standing in article.
Directors protected against corporation/shareholder monetary claims for compliant duties or mission failure. Officers protected for actions believed in good-faith business judgment consistent with mission AND third-party standard. No express corporation mission-damages bar.
Directors AND officers have statutory damages cap for corporation/shareholder claims per transaction: greater of $100k or prior-year cash compensation, reducible to zero by charter/shareholder-approved bylaw. Exceptions wilful misconduct, knowing criminal violation, federal/state securities violation.
Entry: unanimous entitled voting shareholders. Exit: ordinary amendment rule; >two-thirds default, reducible by charter. Conversion after formation requires ALL shareholders entitled to vote. Exit uses ordinary amendment rule: >two-thirds each entitled voting group by default; charter may lower to majority of votes cast with quorum.
Ordinary: $100 / annual. Annual REGISTRATION fee at 1–5,000 authorized shares; higher authorized shares increase fee. Annual report itself has no filing fee. Benefit filing: $0 / annual. No state benefit-report filing. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Virginia corporation income tax is 6% of Virginia taxable income. Multistate corporations allocate/apportion using Virginia Schedule A. Federally elected S corporations generally use Virginia's pass-through regime instead of this ordinary C-corporation calculation. There is no fixed-dollar minimum in the ordinary corporate-income formula. The SCC annual stock-corporation registration fee is separate and starts at $100 for 1–5,000 authorized shares, increasing with shares. Local business-license taxes and property, sales and payroll taxes may also apply. Virginia Tax requires domestic and SCC-registered corporations to file annually even with no income; other foreign corporations file when they have Virginia-source income. Schedule A and applicable nexus/P.L. 86-272 rulings determine multistate liability, not the incorporation address alone. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation in a regular full year with no Virginia taxable profit after modifications and apportionment. The SCC annual registration fee and local operating taxes remain separate.
Unanimous conversion-in vote; easier ordinary-amendment route out. Automatic director/officer statutory cap, with charter option for zero, is distinct from mandatory charter adoption in most states. Specific benefit can be set by board/bylaw; officer safe harbor depends on the third-party standard.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Virginia ordinary exculpation is limited to corporation/shareholder claims; it does not supply a general regulatory or third-party shield. Selected statutory provisions; not a full case-law, charter or tax audit.
Specific charter mission and explicit balancing differ from broad general-benefit model duties. Colorado annual public third-party-standard assessment is stricter than Delaware’s default reporting.
$25 / year, compared filings + minimum taxesColorado keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 8 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 20 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Colorado: Certificate must identify one or more specific public benefits. Responsible and sustainable operation is required; no model-style mandatory general whole-society/environment purpose.
Why this changes the score: Colorado offers Public benefit corporation.
Colorado offers Public benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Colorado: §7-102-102(2)(d) permits director charter exculpation with financial-benefit, intentional-harm, unlawful-distribution and intentional-criminal exceptions. Benefit-specific rule: Director protection is a balancing safe harbor and default bad-faith/loyalty classification rule, not the model-act blanket corporate benefit-failure bar.
Why this changes the score: Colorado keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Colorado has an identified director monetary-protection provision in the compared scope, which earns this credit. §7-102-102(2)(d) permits director charter exculpation with financial-benefit, intentional-harm, unlawful-distribution and intentional-criminal exceptions.
Colorado does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Colorado requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Colorado protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. Director protection is a balancing safe harbor and default bad-faith/loyalty classification rule, not the model-act blanket corporate benefit-failure bar.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Colorado: Annual public and shareholder benefit report, with third-party-standard assessment; outside certification/audit is not required. Assessment rule: Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Why this changes the score: Colorado: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Colorado: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Colorado: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Colorado: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Colorado has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Colorado: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $0. Ordinary domestic C corporation operating in Colorado with no Colorado taxable net income. No fixed corporate-income minimum added; registry fees and all variable operating taxes excluded. The rate is not used to estimate tax.
Why this changes the score: Colorado has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges.
Colorado has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges. Ordinary domestic C corporation operating in Colorado with no Colorado taxable net income. No fixed corporate-income minimum added; registry fees and all variable operating taxes excluded. The rate is not used to estimate tax. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Colorado: Becoming a benefit company: Ordinary corporate amendment/conversion votes; former PBC-specific two-thirds vote removed in 2022. 2022 amendments reduced special voting/appraisal barriers; use ordinary transaction rules and charter terms. Changing back: Ordinary corporate votes; no benefit-specific supermajority retained.
Why this changes the score: Colorado entry uses Ordinary corporate amendment/conversion votes; former PBC-specific two-thirds vote removed in 2022.; exit uses Ordinary corporate votes; no benefit-specific supermajority retained.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Colorado: becoming a benefit company requires Ordinary corporate amendment/conversion votes; former PBC-specific two-thirds vote removed in 2022. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Colorado: changing back requires Ordinary corporate votes; no benefit-specific supermajority retained. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Colorado: Directors must balance shareholders’ pecuniary interests, interests of those materially affected, and charter public benefits. Informed, disinterested, nonirrational decisions satisfy this duty. Disclosure: Annual public and shareholder benefit report, with third-party-standard assessment; outside certification/audit is not required. Enforcement: §7-101-508 limits an action enforcing the balancing requirement to qualifying stockholders; ordinary derivative requirements also apply.
Why this changes the score: Colorado requires public access to the report. Colorado annual public third-party-standard assessment is stricter than Delaware’s default reporting.
Colorado requires report access for people outside the company, so it earns public-access credit. Annual public and shareholder benefit report, with third-party-standard assessment; outside certification/audit is not required.
Colorado: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Colorado: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Colorado makes a mission duty mandatory, so it earns this credit. Directors must balance shareholders’ pecuniary interests, interests of those materially affected, and charter public benefits. Informed, disinterested, nonirrational decisions satisfy this duty.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Colorado’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. specific-benefit three-way balancing
Certificate must identify one or more specific public benefits. Responsible and sustainable operation is required; no model-style mandatory general whole-society/environment purpose.
Directors must balance shareholders’ pecuniary interests, interests of those materially affected, and charter public benefits. Informed, disinterested, nonirrational decisions satisfy this duty.
Annual public and shareholder benefit report, with third-party-standard assessment; outside certification/audit is not required.
Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
§7-101-508 limits an action enforcing the balancing requirement to qualifying stockholders; ordinary derivative requirements also apply.
Director protection is a balancing safe harbor and default bad-faith/loyalty classification rule, not the model-act blanket corporate benefit-failure bar.
§7-102-102(2)(d) permits director charter exculpation with financial-benefit, intentional-harm, unlawful-distribution and intentional-criminal exceptions. Retained exceptions: Improper financial benefit; Intentional infliction of harm; Specified unlawful distributions; Intentional criminal-law violation; Acts before the provision becomes effective. Activation: Opt-in articles of incorporation.
Entry: Ordinary corporate amendment/conversion votes; former PBC-specific two-thirds vote removed in 2022.. Exit: Ordinary corporate votes; no benefit-specific supermajority retained.. 2022 amendments reduced special voting/appraisal barriers; use ordinary transaction rules and charter terms.
Ordinary: $25 / annual. Normal periodic report under current Secretary of State fee table. Benefit filing: $0 / none. No separate state benefit-report filing identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Colorado's statutory corporate income-tax rate is 4.4% of Colorado taxable income; temporary tax-year reductions can apply. The agency lists 4.4% for 2025 and 4.25% for 2024. The general calculation has no fixed corporate minimum. No additional fixed general corporate-income minimum is identified in the ordinary taxable-income calculation. Annual registry fees are separate; positive income and other taxable activities can produce tax. Doing business and Colorado-source income create nexus. Multistate allocation/apportionment and combined-return rules apply; the state of incorporation is not the sole tax jurisdiction. Compared yearly minimum addition: $0. Ordinary domestic C corporation operating in Colorado with no Colorado taxable net income. No fixed corporate-income minimum added; registry fees and all variable operating taxes excluded. The rate is not used to estimate tax.
Specific charter mission and explicit balancing differ from broad general-benefit model duties. Colorado annual public third-party-standard assessment is stricter than Delaware’s default reporting. The 2022 law removed special two-thirds status votes/appraisal rules and made the disinterested bad-faith/loyalty protection automatic.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Every sustainable business corporation needs an independent benefit director, including a small private company. Public commenters receive formal responses in the final annual report; names of 5% holders are disclosed.
$12.5 / year, compared filings + minimum taxesHawaii keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Every sustainable business corporation needs an independent benefit director, including a small private company.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 14 |
| Less paperwork | 12 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Hawaii: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Hawaii offers Sustainable business corporation.
Hawaii offers Sustainable business corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Hawaii: §414-222 permits ordinary director articles limitation. Later adoption requires two-thirds shares represented and entitled to vote, also constituting a majority of all shares entitled to vote; written proposal notice and state filing are required. Benefit-specific rule: Do not import another state’s company damages bar into Hawaii. Director/officer protections expressly depend on ordinary standards of conduct.
Why this changes the score: Hawaii keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Every sustainable business corporation needs an independent benefit director, including a small private company.
Hawaii has an identified director monetary-protection provision in the compared scope, which earns this credit. §414-222 permits ordinary director articles limitation. Later adoption requires two-thirds shares represented and entitled to vote, also constituting a majority of all shares entitled to vote; written proposal notice and state filing are required.
Hawaii does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Hawaii requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Hawaii has no separately credited benefit-specific monetary shield for company. Do not import another state’s company damages bar into Hawaii. Director/officer protections expressly depend on ordinary standards of conduct.
Hawaii earns the benefit-specific credit for directors. Do not import another state’s company damages bar into Hawaii. Director/officer protections expressly depend on ordinary standards of conduct.
Hawaii earns the benefit-specific credit for officers. Do not import another state’s company damages bar into Hawaii. Director/officer protections expressly depend on ordinary standards of conduct.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Hawaii: Annual shareholder report and latest public report. A draft must receive 60 days of public comments; benefit director must formally answer all comments/questions in final report. Assessment rule: Independent, comprehensive and transparent third-party standard is required; the chapter does not require purchase of private certification.
Why this changes the score: Hawaii: Annual; Required outside framework; no separate state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
Hawaii: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Hawaii: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Hawaii: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Hawaii requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Directors shall consider shareholders and benefit accomplishment; they may consider workers, customers, community, environment and other listed interests. This is not mandatory consideration of every model-act stakeholder.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Hawaii: Registry reporting: $12.5 per year on an annualized basis. Minimum tax/license used here: $0. Fixed yearly baseline only, ordinary domestic C corporation. Variable GET on business receipts can be positive even with zero profit and is excluded from this figure; no annual GET-license renewal charge is included. The $20 registration fee is one-time.
Why this changes the score: Hawaii has a compared recurring floor of $12.5 per year, including $0 in identified minimum tax/license charges.
Hawaii has a compared recurring floor of $12.5 per year, including $0 in identified minimum tax/license charges. Fixed yearly baseline only, ordinary domestic C corporation. Variable GET on business receipts can be positive even with zero profit and is excluded from this figure; no annual GET-license renewal charge is included. The $20 registration fee is one-time. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Hawaii: Becoming a benefit company: Two thirds of every class/series, including otherwise nonvoting shares. Most companies can exit by two-thirds class vote. A particular patent-purpose election creates a conditional permanent mission/status restriction. Changing back: Same minimum status vote, unless the patent-purpose permanent-status clause applies.
Why this changes the score: Hawaii entry uses Two thirds of every class/series, including otherwise nonvoting shares.; exit uses Same minimum status vote, unless the patent-purpose permanent-status clause applies.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Hawaii: becoming a benefit company requires Two thirds of every class/series, including otherwise nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Hawaii: changing back requires Same minimum status vote, unless the patent-purpose permanent-status clause applies. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Hawaii: Directors shall consider shareholders and benefit accomplishment; they may consider workers, customers, community, environment and other listed interests. This is not mandatory consideration of every model-act stakeholder. Disclosure: Annual shareholder report and latest public report. A draft must receive 60 days of public comments; benefit director must formally answer all comments/questions in final report. Enforcement: §420D-10 permits shareholders/directors to enforce directly or derivatively. Ordinary derivative procedures still matter.
Why this changes the score: Hawaii requires public access to the report. Public commenters receive formal responses in the final annual report; names of 5% holders are disclosed. Most stakeholders are permissive considerations while shareholders and benefit purposes are mandatory.
Hawaii requires report access for people outside the company, so it earns public-access credit. Annual shareholder report and latest public report. A draft must receive 60 days of public comments; benefit director must formally answer all comments/questions in final report.
Hawaii: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Hawaii: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Hawaii makes a mission duty mandatory, so it earns this credit. Directors shall consider shareholders and benefit accomplishment; they may consider workers, customers, community, environment and other listed interests. This is not mandatory consideration of every model-act stakeholder.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Hawaii’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general benefit with distinct governance and public-comment procedure
General public benefit is mandatory; a charter may add specific public benefits.
Directors shall consider shareholders and benefit accomplishment; they may consider workers, customers, community, environment and other listed interests. This is not mandatory consideration of every model-act stakeholder.
Annual shareholder report and latest public report. A draft must receive 60 days of public comments; benefit director must formally answer all comments/questions in final report.
Independent, comprehensive and transparent third-party standard is required; the chapter does not require purchase of private certification.
§420D-10 permits shareholders/directors to enforce directly or derivatively. Ordinary derivative procedures still matter.
Do not import another state’s company damages bar into Hawaii. Director/officer protections expressly depend on ordinary standards of conduct.
§414-222 permits ordinary director articles limitation. Later adoption requires two-thirds shares represented and entitled to vote, also constituting a majority of all shares entitled to vote; written proposal notice and state filing are required. Retained exceptions: Improper financial benefit; Intentional harm to corporation/shareholders; §414-223 unlawful distributions; Intentional criminal-law violation. Activation: Articles provision; later adoption has a special vote under §414-32(b)(4).
Entry: Two thirds of every class/series, including otherwise nonvoting shares.. Exit: Same minimum status vote, unless the patent-purpose permanent-status clause applies.. Most companies can exit by two-thirds class vote. A particular patent-purpose election creates a conditional permanent mission/status restriction.
Ordinary: $12.5 / annual. Published online annual domestic stock-corporation report rate; electronic rate used for registry-cost comparison. Benefit filing: $0 / none. Current chapter does not require separate state benefit-report filing. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Corporate income tax has marginal brackets of 4.4% up to $25,000, 5.4% from $25,000 to $100,000 and 6.4% above $100,000; a 4% capital-gain alternative can apply. Separately, GET taxes gross receipts even without profit: the agency currently lists 4.5% for most retail/services, including a 0.5% county surcharge, and 0.5% for qualifying wholesale/production activity. No fixed annual minimum appears in the general corporate-income computation. GET is variable and may be due on low receipts despite an income-tax loss. The general GET license costs $20 once at registration, not annually. Hawaii-source income, physical/economic nexus, allocation/apportionment and GET sourcing matter. Formation elsewhere does not remove taxes on Hawaii activities; the GET rate depends on activity and applicable county surcharge. Compared yearly minimum addition: $0. Fixed yearly baseline only, ordinary domestic C corporation. Variable GET on business receipts can be positive even with zero profit and is excluded from this figure; no annual GET-license renewal charge is included. The $20 registration fee is one-time.
Every sustainable business corporation needs an independent benefit director, including a small private company. Public commenters receive formal responses in the final annual report; names of 5% holders are disclosed. Most stakeholders are permissive considerations while shareholders and benefit purposes are mandatory. Conditional permanent patent-purpose rule is relevant to technology/IP businesses.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Three-interest balancing combined with mandatory public annual third-party report; not the same reporting regime as Delaware/Texas. 2023 protection is default unless charter opts out.
$45 / year, compared filings + minimum taxesKansas keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 8 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 20 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Kansas: Responsible/sustainable for-profit corporation must name one or more specific public benefits in articles; no separate broad general-benefit purpose imposed.
Why this changes the score: Kansas offers Public benefit corporation.
Kansas offers Public benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Kansas: Optional director-only charter monetary exculpation; exceptions loyalty, bad faith/intentional misconduct/knowing law violation, unlawful distributions and improper benefit. Prospective. Benefit-specific rule: No blanket company/director/officer benefit-failure monetary bar. Director balancing safe harbor and default protection against bad-faith/loyalty classification interact with ordinary charter exculpation.
Why this changes the score: Kansas keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Kansas has an identified director monetary-protection provision in the compared scope, which earns this credit. Optional director-only charter monetary exculpation; exceptions loyalty, bad faith/intentional misconduct/knowing law violation, unlawful distributions and improper benefit. Prospective.
Kansas does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Kansas requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Kansas protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. No blanket company/director/officer benefit-failure monetary bar. Director balancing safe harbor and default protection against bad-faith/loyalty classification interact with ordinary charter exculpation.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Kansas: Annual benefit statement to shareholders, latest publicly posted or free on request; third-party assessment required. Timing refers to ordinary report statute, now biennial, creating a timing cross-reference to check. No state benefit-report filing specified. The current 2026 text still says no less than annually in 17-72a06(b), while subsection (c) links timing to the annual report under 17-7503; section 17-7503 now governs biennial information reports. The annual benefit-statement duty remains explicit, but the cross-reference does not give a clear intervening-year delivery date. A company should set an annual shareholder/publication date and confirm that timing with counsel rather than reduce the benefit report to biennial. Assessment rule: Annual statement must assess benefit performance against independent transparent third-party standard. Third-party certification may be required by articles/bylaws; not statutory default.
Why this changes the score: Kansas: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Kansas: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Kansas: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Kansas: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Kansas has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Kansas: Registry reporting: $45 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation operating in Kansas with no Kansas taxable income after adjustments and apportionment: $0 ordinary income tax and no franchise minimum. Excludes information-report fees and other operating taxes.
Why this changes the score: Kansas has a compared recurring floor of $45 per year, including $0 in identified minimum tax/license charges.
Kansas has a compared recurring floor of $45 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation operating in Kansas with no Kansas taxable income after adjustments and apportionment: $0 ordinary income tax and no franchise minimum. Excludes information-report fees and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Kansas: Becoming a benefit company: ordinary majority of outstanding entitled stock (charter amendment). Prior benefit-specific 17-72a03 was repealed in 2023. Entry/exit by charter amendment now uses ordinary board approval and majority of outstanding stock entitled to vote, plus majority of each class separately entitled to vote. Class votes and greater charter thresholds may apply; other transaction routes retain their own rules. Changing back: ordinary majority of outstanding entitled stock (charter amendment)
Why this changes the score: Kansas entry uses ordinary majority of outstanding entitled stock (charter amendment); exit uses ordinary majority of outstanding entitled stock (charter amendment). Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Kansas: becoming a benefit company requires ordinary majority of outstanding entitled stock (charter amendment). Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Kansas: changing back requires ordinary majority of outstanding entitled stock (charter amendment). Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Kansas: Must balance stockholder pecuniary interests, materially affected interests and chosen benefits; informed/disinterested/rational-decision safe harbor. Since 2023, stockholding alone is not conflict and disinterested balancing failure is not bad faith/loyalty breach unless articles opt out. Disclosure: Annual benefit statement to shareholders, latest publicly posted or free on request; third-party assessment required. Timing refers to ordinary report statute, now biennial, creating a timing cross-reference to check. No state benefit-report filing specified. The current 2026 text still says no less than annually in 17-72a06(b), while subsection (c) links timing to the annual report under 17-7503; section 17-7503 now governs biennial information reports. The annual benefit-statement duty remains explicit, but the cross-reference does not give a clear intervening-year delivery date. A company should set an annual shareholder/publication date and confirm that timing with counsel rather than reduce the benefit report to biennial. Enforcement: Any individual/derivative/other action enforcing balancing requires at filing 2% total outstanding or listed lesser 2%/$2m; other derivative rules remain.
Why this changes the score: Kansas requires public access to the report. Three-interest balancing combined with mandatory public annual third-party report; not the same reporting regime as Delaware/Texas.
Kansas requires report access for people outside the company, so it earns public-access credit. Annual benefit statement to shareholders, latest publicly posted or free on request; third-party assessment required. Timing refers to ordinary report statute, now biennial, creating a timing cross-reference to check. No state benefit-report filing specified. The current 2026 text still says no less than annually in 17-72a06(b), while subsection (c) links timing to the annual report under 17-7503; section 17-7503 now governs biennial information reports. The annual benefit-statement duty remains explicit, but the cross-reference does not give a clear intervening-year delivery date. A company should set an annual shareholder/publication date and confirm that timing with counsel rather than reduce the benefit report to biennial.
Kansas: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Kansas: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Kansas makes a mission duty mandatory, so it earns this credit. Must balance stockholder pecuniary interests, materially affected interests and chosen benefits; informed/disinterested/rational-decision safe harbor. Since 2023, stockholding alone is not conflict and disinterested balancing failure is not bad faith/loyalty breach unless articles opt out.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Kansas’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Specific-benefit three-interest balancing with mandatory third-party public annual report
Responsible/sustainable for-profit corporation must name one or more specific public benefits in articles; no separate broad general-benefit purpose imposed.
Must balance stockholder pecuniary interests, materially affected interests and chosen benefits; informed/disinterested/rational-decision safe harbor. Since 2023, stockholding alone is not conflict and disinterested balancing failure is not bad faith/loyalty breach unless articles opt out.
Annual benefit statement to shareholders, latest publicly posted or free on request; third-party assessment required. Timing refers to ordinary report statute, now biennial, creating a timing cross-reference to check. No state benefit-report filing specified. The current 2026 text still says no less than annually in 17-72a06(b), while subsection (c) links timing to the annual report under 17-7503; section 17-7503 now governs biennial information reports. The annual benefit-statement duty remains explicit, but the cross-reference does not give a clear intervening-year delivery date. A company should set an annual shareholder/publication date and confirm that timing with counsel rather than reduce the benefit report to biennial.
Annual statement must assess benefit performance against independent transparent third-party standard. Third-party certification may be required by articles/bylaws; not statutory default.
Any individual/derivative/other action enforcing balancing requires at filing 2% total outstanding or listed lesser 2%/$2m; other derivative rules remain.
No blanket company/director/officer benefit-failure monetary bar. Director balancing safe harbor and default protection against bad-faith/loyalty classification interact with ordinary charter exculpation.
Optional director-only charter monetary exculpation; exceptions loyalty, bad faith/intentional misconduct/knowing law violation, unlawful distributions and improper benefit. Prospective.
Entry: ordinary majority of outstanding entitled stock (charter amendment). Exit: ordinary majority of outstanding entitled stock (charter amendment). Prior benefit-specific 17-72a03 was repealed in 2023. Entry/exit by charter amendment now uses ordinary board approval and majority of outstanding stock entitled to vote, plus majority of each class separately entitled to vote. Class votes and greater charter thresholds may apply; other transaction routes retain their own rules.
Ordinary: $90 / biennial. Current July 22, 2026 form: $90 online/$110 paper biennial for-profit information report, including current regulatory fees. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Kansas ordinary corporate income tax is 3.5% of Kansas taxable income plus a 3% surtax on the portion above $50,000, producing a 6.5% marginal rate above that threshold. This 3.5% normal rate applies from tax year 2024 onward. Kansas franchise tax was eliminated for tax year 2011 and later. The ordinary corporation has no surviving general fixed franchise/capital minimum; corporate income tax remains a separate calculation. Secretary of State information-report charges are separate. Corporations doing business in Kansas or deriving Kansas-source income must generally file even when no tax is due. Allocation, apportionment, unitary-group rules, federal P.L. 86-272 protection, and credits determine actual income-tax liability; chartering elsewhere does not remove Kansas-source taxation. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation operating in Kansas with no Kansas taxable income after adjustments and apportionment: $0 ordinary income tax and no franchise minimum. Excludes information-report fees and other operating taxes.
Three-interest balancing combined with mandatory public annual third-party report; not the same reporting regime as Delaware/Texas. 2023 protection is default unless charter opts out. Old benefit-specific supermajority provision repealed.
Primary-source findings with stated qualifications. Genuine statutory timing mismatch: annual benefit-statement duty in 17-72a06(b) coexists with subsection (c) referring to the now-biennial information-report schedule in 17-7503; no specific intervening-year date is supplied. Selected statutory provisions; not a full case-law, charter or tax audit.
Annual benefit report is voted on by shareholders; mission goals also require approval. Reckless harm/criminal acts remain outside ordinary charter protection.
$160 / year, compared filings + minimum taxesVermont adds ordinary officer coverage; the charter must elect the ordinary protection. Reckless harm/criminal acts remain outside ordinary charter protection. Officer charter exculpation is specifically provided for benefit corporations.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 20 |
| Less paperwork | 12 |
| Yearly state costs and taxes | 9 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Vermont: General public benefit required; specific charter benefits optional.
Why this changes the score: Vermont offers Benefit corporation.
Vermont offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Vermont: Ordinary charter director protection excludes unentitled financial benefit, intentional OR reckless harm, unlawful distributions, and intentional OR reckless criminal acts. Benefit-corporation §21.11(f) separately permits officer charter exculpation, with financial-benefit/harm/criminal exceptions. Benefit-specific rule: Directors/officers receive compliant-conduct and mission-failure protection; no express corporation mission-damages bar identified. Benefit-director exceptions bad faith, intentional misconduct/knowing violations and improper benefit.
Why this changes the score: Vermont adds ordinary officer coverage; the charter must elect the ordinary protection. Reckless harm/criminal acts remain outside ordinary charter protection. Officer charter exculpation is specifically provided for benefit corporations.
Vermont has an identified director monetary-protection provision in the compared scope, which earns this credit. Ordinary charter director protection excludes unentitled financial benefit, intentional OR reckless harm, unlawful distributions, and intentional OR reckless criminal acts. Benefit-corporation §21.11(f) separately permits officer charter exculpation, with financial-benefit/harm/criminal exceptions.
Vermont extends ordinary protection to officers, which earns officer-scope credit. Ordinary charter director protection excludes unentitled financial benefit, intentional OR reckless harm, unlawful distributions, and intentional OR reckless criminal acts. Benefit-corporation §21.11(f) separately permits officer charter exculpation, with financial-benefit/harm/criminal exceptions.
Vermont requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Vermont has no separately credited benefit-specific monetary shield for company. Directors/officers receive compliant-conduct and mission-failure protection; no express corporation mission-damages bar identified. Benefit-director exceptions bad faith, intentional misconduct/knowing violations and improper benefit.
Vermont earns the benefit-specific credit for directors. Directors/officers receive compliant-conduct and mission-failure protection; no express corporation mission-damages bar identified. Benefit-director exceptions bad faith, intentional misconduct/knowing violations and improper benefit.
Vermont earns the benefit-specific credit for officers. Directors/officers receive compliant-conduct and mission-failure protection; no express corporation mission-damages bar identified. Benefit-director exceptions bad faith, intentional misconduct/knowing violations and improper benefit.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Vermont: Annual to shareholders by earlier of 120 days or other annual report. Shareholders must approve/reject by majority vote; next-year goals are shareholder approved. Latest endorsed report public online or free on request. No state benefit-report filing. Assessment rule: Annual assessment against third-party standard required. No mandatory external certification; benefit director may commission a voluntary audit.
Why this changes the score: Vermont: Annual; Required outside framework; no separate state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
Vermont: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Vermont: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Vermont: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Vermont requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Mandatory stakeholder consideration. Independent benefit director generally required; boardless replacement need not be independent unless annual gross revenue ≥$5m in each of preceding two years.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Vermont: Registry reporting: $60 per year on an annualized basis. Minimum tax/license used here: $100. Small active ordinary domestic C corporation in a regular full year, Vermont gross receipts below $500,000, no taxable profit and no small-farm or other special classification. Annual registry and benefit-report fees are separate.
Why this changes the score: Vermont has a compared recurring floor of $160 per year, including $100 in identified minimum tax/license charges.
Vermont has a compared recurring floor of $160 per year, including $100 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular full year, Vermont gross receipts below $500,000, no taxable profit and no small-farm or other special classification. Annual registry and benefit-report fees are separate. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Vermont: Becoming a benefit company: two-thirds of entitled votes and entitled voting groups. Entry/exit requires higher charter vote or two-thirds of entitled outstanding votes and each separately entitled voting group. Does not automatically enfranchise all otherwise nonvoting classes. Changing back: two-thirds of entitled votes and entitled voting groups
Why this changes the score: Vermont entry uses two-thirds of entitled votes and entitled voting groups; exit uses two-thirds of entitled votes and entitled voting groups. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Vermont: becoming a benefit company requires two-thirds of entitled votes and entitled voting groups. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Vermont: changing back requires two-thirds of entitled votes and entitled voting groups. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Vermont: Mandatory stakeholder consideration. Independent benefit director generally required; boardless replacement need not be independent unless annual gross revenue ≥$5m in each of preceding two years. Disclosure: Annual to shareholders by earlier of 120 days or other annual report. Shareholders must approve/reject by majority vote; next-year goals are shareholder approved. Latest endorsed report public online or free on request. No state benefit-report filing. Enforcement: Otherwise eligible derivative shareholder, director, 10% parent equity, and charter designees; the special statutory list does not expressly list the corporation itself. No special direct-company ownership percentage.
Why this changes the score: Vermont requires public access to the report. Annual benefit report is voted on by shareholders; mission goals also require approval. Special benefit-enforcement standing list omits an express corporation-direct action.
Vermont requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report. Shareholders must approve/reject by majority vote; next-year goals are shareholder approved. Latest endorsed report public online or free on request. No state benefit-report filing.
Vermont: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Vermont: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Vermont makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration. Independent benefit director generally required; boardless replacement need not be independent unless annual gross revenue ≥$5m in each of preceding two years.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Vermont’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / shareholder-approved-report model
General public benefit required; specific charter benefits optional.
Mandatory stakeholder consideration. Independent benefit director generally required; boardless replacement need not be independent unless annual gross revenue ≥$5m in each of preceding two years.
Annual to shareholders by earlier of 120 days or other annual report. Shareholders must approve/reject by majority vote; next-year goals are shareholder approved. Latest endorsed report public online or free on request. No state benefit-report filing.
Annual assessment against third-party standard required. No mandatory external certification; benefit director may commission a voluntary audit.
Otherwise eligible derivative shareholder, director, 10% parent equity, and charter designees; the special statutory list does not expressly list the corporation itself. No special direct-company ownership percentage.
Directors/officers receive compliant-conduct and mission-failure protection; no express corporation mission-damages bar identified. Benefit-director exceptions bad faith, intentional misconduct/knowing violations and improper benefit.
Ordinary charter director protection excludes unentitled financial benefit, intentional OR reckless harm, unlawful distributions, and intentional OR reckless criminal acts. Benefit-corporation §21.11(f) separately permits officer charter exculpation, with financial-benefit/harm/criminal exceptions.
Entry: two-thirds of entitled votes and entitled voting groups. Exit: two-thirds of entitled votes and entitled voting groups. Entry/exit requires higher charter vote or two-thirds of entitled outstanding votes and each separately entitled voting group. Does not automatically enfranchise all otherwise nonvoting classes.
Ordinary: $60 / annual. Domestic business-corporation annual report. Benefit filing: $0 / annual. No state benefit-report filing. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Vermont corporate income tax uses marginal rates of 6% through $10,000 of Vermont taxable income, 7% above $10,000 through $25,000, and 8.5% above $25,000, subject to an active-corporation minimum determined by Vermont gross receipts. For an ordinary active C corporation, the lowest annual minimum is $100 in the lowest Vermont-receipts tier; higher tiers are $500, $2,000, $6,000 and $100,000. An inactive return with no activity or tax liability can have no tax due. Small farm corporations have a separate $75 exception, and pass-through entities follow a different regime. The department requires returns for Vermont incorporation, income allocated/apportioned to Vermont or an open corporate account. Services and intangible sales follow Vermont-market sourcing under the documented 2019 change. An inactive filing exception must not be used for an active operating-company comparison. Compared yearly minimum addition: $100. Small active ordinary domestic C corporation in a regular full year, Vermont gross receipts below $500,000, no taxable profit and no small-farm or other special classification. Annual registry and benefit-report fees are separate.
Annual benefit report is voted on by shareholders; mission goals also require approval. Reckless harm/criminal acts remain outside ordinary charter protection. Officer charter exculpation is specifically provided for benefit corporations. Special benefit-enforcement standing list omits an express corporation-direct action.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Entity-specific tax and boardless-corporation independence qualifications not modeled beyond statutory thresholds. Selected statutory provisions; not a full case-law, charter or tax audit.
All corporations require a benefit director, unlike optional/private-exempt models. Public report discloses known/record 5% owners.
$75 / year, compared filings + minimum taxesIllinois keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. All corporations require a benefit director, unlike optional/private-exempt models.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 12 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Illinois: General public benefit is mandatory; specific benefits are optional.
Why this changes the score: Illinois offers Benefit corporation.
Illinois offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Illinois: Optional director-only charter monetary exculpation for corporation/shareholder fiduciary claims; exceptions loyalty, bad faith, intentional misconduct/knowing law violation, unlawful distributions, improper personal benefit and pre-effective conduct. Benefit-specific rule: Company monetary damages barred under benefit Act for failure to pursue/create benefit. Director and officer protection for compliant conduct and benefit failure; benefit-director exceptions include self-dealing, willful misconduct or knowing law violation.
Why this changes the score: Illinois keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. All corporations require a benefit director, unlike optional/private-exempt models.
Illinois has an identified director monetary-protection provision in the compared scope, which earns this credit. Optional director-only charter monetary exculpation for corporation/shareholder fiduciary claims; exceptions loyalty, bad faith, intentional misconduct/knowing law violation, unlawful distributions, improper personal benefit and pre-effective conduct.
Illinois does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Illinois requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Illinois earns the benefit-specific credit for company. Company monetary damages barred under benefit Act for failure to pursue/create benefit. Director and officer protection for compliant conduct and benefit failure; benefit-director exceptions include self-dealing, willful misconduct or knowing law violation.
Illinois earns the benefit-specific credit for directors. Company monetary damages barred under benefit Act for failure to pursue/create benefit. Director and officer protection for compliant conduct and benefit failure; benefit-director exceptions include self-dealing, willful misconduct or knowing law violation.
Illinois earns the benefit-specific credit for officers. Company monetary damages barred under benefit Act for failure to pursue/create benefit. Director and officer protection for compliant conduct and benefit failure; benefit-director exceptions include self-dealing, willful misconduct or knowing law violation.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Illinois: Annual shareholder report within 120 days or with other annual report; all reports public website, latest free copy if no website. Report identifies known/record owners of at least 5% and benefit-director opinion. No state benefit-report filing required by this section. Assessment rule: Annual performance assessment must use a third-party standard. Statute requires assessment against a standard but does not require buying certification or external audit in its reporting provision.
Why this changes the score: Illinois: Annual; Required outside framework; no separate state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
Illinois: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Illinois: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Illinois: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Illinois requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Mandatory consideration of listed stakeholders; no required priority unless charter specifies one. All benefit corporations must designate an independent benefit director, with special rules when shareholders/others perform board duties.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Illinois: Registry reporting: $75 per year on an annualized basis. Minimum tax/license used here: $0. Small active domestic C corporation with no Illinois net taxable income and allocated paid-in capital at or below $10 million: annual franchise liability is within the $10,000 exemption and income/replacement tax is $0. Excludes report fees and capital-change transactions.
Why this changes the score: Illinois has a compared recurring floor of $75 per year, including $0 in identified minimum tax/license charges.
Illinois has a compared recurring floor of $75 per year, including $0 in identified minimum tax/license charges. Small active domestic C corporation with no Illinois net taxable income and allocated paid-in capital at or below $10 million: annual franchise liability is within the $10,000 exemption and income/replacement tax is $0. Excludes report fees and capital-change transactions. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Illinois: Becoming a benefit company: 2/3 each class/series. Minimum-status vote: 2/3 each class/series including otherwise nonvoting shares; applies to entry, exit and nonordinary all/substantially-all asset disposition. Changing back: 2/3 each class/series
Why this changes the score: Illinois entry uses 2/3 each class/series; exit uses 2/3 each class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Illinois: becoming a benefit company requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Illinois: changing back requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Illinois: Mandatory consideration of listed stakeholders; no required priority unless charter specifies one. All benefit corporations must designate an independent benefit director, with special rules when shareholders/others perform board duties. Disclosure: Annual shareholder report within 120 days or with other annual report; all reports public website, latest free copy if no website. Report identifies known/record owners of at least 5% and benefit-director opinion. No state benefit-report filing required by this section. Enforcement: Corporation directly; derivatively any shareholder, director, 5% parent-equity holders, and charter/bylaw designees. No 2% floor on company shareholder.
Why this changes the score: Illinois requires public access to the report. Public report discloses known/record 5% owners. Any shareholder can enforce; no percentage floor.
Illinois requires report access for people outside the company, so it earns public-access credit. Annual shareholder report within 120 days or with other annual report; all reports public website, latest free copy if no website. Report identifies known/record owners of at least 5% and benefit-director opinion. No state benefit-report filing required by this section.
Illinois: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Illinois: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Illinois makes a mission duty mandatory, so it earns this credit. Mandatory consideration of listed stakeholders; no required priority unless charter specifies one. All benefit corporations must designate an independent benefit director, with special rules when shareholders/others perform board duties.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Illinois’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit mandatory stakeholder model; mandatory benefit director
General public benefit is mandatory; specific benefits are optional.
Mandatory consideration of listed stakeholders; no required priority unless charter specifies one. All benefit corporations must designate an independent benefit director, with special rules when shareholders/others perform board duties.
Annual shareholder report within 120 days or with other annual report; all reports public website, latest free copy if no website. Report identifies known/record owners of at least 5% and benefit-director opinion. No state benefit-report filing required by this section.
Annual performance assessment must use a third-party standard. Statute requires assessment against a standard but does not require buying certification or external audit in its reporting provision.
Corporation directly; derivatively any shareholder, director, 5% parent-equity holders, and charter/bylaw designees. No 2% floor on company shareholder.
Company monetary damages barred under benefit Act for failure to pursue/create benefit. Director and officer protection for compliant conduct and benefit failure; benefit-director exceptions include self-dealing, willful misconduct or knowing law violation.
Optional director-only charter monetary exculpation for corporation/shareholder fiduciary claims; exceptions loyalty, bad faith, intentional misconduct/knowing law violation, unlawful distributions, improper personal benefit and pre-effective conduct.
Entry: 2/3 each class/series. Exit: 2/3 each class/series. Minimum-status vote: 2/3 each class/series including otherwise nonvoting shares; applies to entry, exit and nonordinary all/substantially-all asset disposition.
Ordinary: $75 / annual. Ordinary domestic corporation annual report filing fee is $75; franchise tax is separate. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
An ordinary C corporation pays 7% Illinois income tax plus 2.5% personal property replacement tax on Illinois net income, a combined nominal 9.5%. Both are income-based; the capital-based franchise exemption does not exempt corporate income. Annual franchise tax is generally 0.1% of Illinois-allocated paid-in capital, with a $25 calculated minimum before the exemption. The first $10,000 of franchise-tax liability is exempt for filing periods January 1, 2025 and later, so a small corporation can owe $0 franchise tax. Paid-in-capital changes can trigger separate additional franchise calculations. The $75 annual report fee is separate. Illinois income/replacement tax uses federal taxable income with state modifications and applicable allocation/apportionment. Qualification can require an IL-1120 filing even without income. Capital allocation for Secretary of State franchise tax uses a different property/business formula and must be calculated separately. Compared yearly minimum addition: $0. Small active domestic C corporation with no Illinois net taxable income and allocated paid-in capital at or below $10 million: annual franchise liability is within the $10,000 exemption and income/replacement tax is $0. Excludes report fees and capital-change transactions.
All corporations require a benefit director, unlike optional/private-exempt models. Public report discloses known/record 5% owners. Any shareholder can enforce; no percentage floor.
Primary-source findings with stated qualifications. Franchise-tax amount above exemption requires entity-specific capital/allocation calculation. Official statute text was read through current indexed official pages when some direct requests produced certificate/access errors. Selected statutory provisions; not a full case-law, charter or tax audit.
Optional third-party standard despite mandatory public annual reporting. 5%/$5m enforcement threshold exceeds 2%/$2m PBC models.
$30 / year, compared filings + minimum taxesIowa keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 8 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 17 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Iowa: Responsible/sustainable conduct requires material positive society/environment effect proportionate to business size/nature; identified public benefits may be added in articles.
Why this changes the score: Iowa offers Benefit corporation.
Iowa offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Iowa: Optional director-only charter monetary limitation; exceptions improper financial benefit, intentional harm, unlawful distributions and intentional criminal violation. Benefit-specific rule: No express blanket company/director/officer benefit-failure monetary bar in this subchapter; ordinary liability rules plus benefit-duty intentional-harm safe harbor apply.
Why this changes the score: Iowa keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Iowa has an identified director monetary-protection provision in the compared scope, which earns this credit. Optional director-only charter monetary limitation; exceptions improper financial benefit, intentional harm, unlawful distributions and intentional criminal violation.
Iowa does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Iowa requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Iowa protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. No express blanket company/director/officer benefit-failure monetary bar in this subchapter; ordinary liability rules plus benefit-duty intentional-harm safe harbor apply.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Iowa: Annual objectives/standards/factual assessment; shareholder access/delivery before earlier 120 days or annual financials. All reports public website/latest free on request. Missing report request enforceable after five business days. No state benefit-report filing. Assessment rule: Optional: articles/bylaws may require a third-party standard or board may choose one. No mandatory third-party certification in reporting requirement.
Why this changes the score: Iowa: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Iowa: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Iowa: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Iowa: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Iowa has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Iowa: Registry reporting: $30 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation operating in Iowa with no Iowa taxable income after state adjustments: $0 ordinary income tax and no separate general franchise/capital minimum. This does not include registry fees or other operating taxes.
Why this changes the score: Iowa has a compared recurring floor of $30 per year, including $0 in identified minimum tax/license charges.
Iowa has a compared recurring floor of $30 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation operating in Iowa with no Iowa taxable income after state adjustments: $0 ordinary income tax and no separate general franchise/capital minimum. This does not include registry fees or other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Iowa: Becoming a benefit company: 2/3 entitled voting power. Entry/exit by amendment or covered merger/exchange/domestication/conversion: 2/3 voting power entitled plus 2/3 each separate affected voting group; greater articles/bylaws permitted. Includes identified-benefit change rules in provision. Changing back: 2/3 entitled voting power
Why this changes the score: Iowa entry uses 2/3 entitled voting power; exit uses 2/3 entitled voting power. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Iowa: becoming a benefit company requires 2/3 entitled voting power. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Iowa: changing back requires 2/3 entitled voting power. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Iowa: Directors shall pursue responsible/sustainable business, identified benefits, and consider shareholders plus known affected stakeholders. No duty to persons merely because affected. Unless articles say otherwise, benefit-duty failure is not intentional harm for specified exculpation/indemnification. Disclosure: Annual objectives/standards/factual assessment; shareholder access/delivery before earlier 120 days or annual financials. All reports public website/latest free on request. Missing report request enforceable after five business days. No state benefit-report filing. Enforcement: Corporation or derivative shareholder with 5% of a class at challenged act; organized-market alternative 5%/$5m. Continuous holding requirement applies. Any shareholder separately may enforce report access.
Why this changes the score: Iowa requires public access to the report. Optional third-party standard despite mandatory public annual reporting. 5%/$5m enforcement threshold exceeds 2%/$2m PBC models.
Iowa requires report access for people outside the company, so it earns public-access credit. Annual objectives/standards/factual assessment; shareholder access/delivery before earlier 120 days or annual financials. All reports public website/latest free on request. Missing report request enforceable after five business days. No state benefit-report filing.
Iowa: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Iowa: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Iowa makes a mission duty mandatory, so it earns this credit. Directors shall pursue responsible/sustainable business, identified benefits, and consider shareholders plus known affected stakeholders. No duty to persons merely because affected. Unless articles say otherwise, benefit-duty failure is not intentional harm for specified exculpation/indemnification.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Iowa’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Responsible/sustainable mandatory consideration model, revised 2022
Responsible/sustainable conduct requires material positive society/environment effect proportionate to business size/nature; identified public benefits may be added in articles.
Directors shall pursue responsible/sustainable business, identified benefits, and consider shareholders plus known affected stakeholders. No duty to persons merely because affected. Unless articles say otherwise, benefit-duty failure is not intentional harm for specified exculpation/indemnification.
Annual objectives/standards/factual assessment; shareholder access/delivery before earlier 120 days or annual financials. All reports public website/latest free on request. Missing report request enforceable after five business days. No state benefit-report filing.
Optional: articles/bylaws may require a third-party standard or board may choose one. No mandatory third-party certification in reporting requirement.
Corporation or derivative shareholder with 5% of a class at challenged act; organized-market alternative 5%/$5m. Continuous holding requirement applies. Any shareholder separately may enforce report access.
No express blanket company/director/officer benefit-failure monetary bar in this subchapter; ordinary liability rules plus benefit-duty intentional-harm safe harbor apply.
Optional director-only charter monetary limitation; exceptions improper financial benefit, intentional harm, unlawful distributions and intentional criminal violation.
Entry: 2/3 entitled voting power. Exit: 2/3 entitled voting power. Entry/exit by amendment or covered merger/exchange/domestication/conversion: 2/3 voting power entitled plus 2/3 each separate affected voting group; greater articles/bylaws permitted. Includes identified-benefit change rules in provision.
Ordinary: $60 / biennial. Profit-corporation biennial report $60, due April 1 of even years. $30-online/$45-paper on same fee page belongs to LLC/LLP, not profit corporation. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
For tax years beginning in 2026, ordinary corporate income tax is 5.5% on the first $100,000 of Iowa taxable income and 7.1% on income above $100,000. The Revenue Department certified that the revenue trigger did not lower the rates for 2026; its October 5, 2026 announcement also keeps these rates for 2027. No general fixed corporate franchise or capital-tax minimum for an ordinary civic/technology stock C corporation. Iowa's separately named franchise tax applies to enumerated financial institutions, not ordinary corporations; its 2026 rate is 3.8%. The former ordinary corporate alternative minimum tax ended for tax years beginning in 2021. Secretary of State report fees are separate. Iowa taxes corporate net income from doing business or receiving income from property in Iowa. Nexus, state modifications, apportionment, losses, and credits determine liability; a zero-profit assumption means zero Iowa taxable income after those adjustments. Forming in another state does not eliminate Iowa tax on Iowa activity. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation operating in Iowa with no Iowa taxable income after state adjustments: $0 ordinary income tax and no separate general franchise/capital minimum. This does not include registry fees or other operating taxes.
Optional third-party standard despite mandatory public annual reporting. 5%/$5m enforcement threshold exceeds 2%/$2m PBC models. Current law replaced former benefit subchapter January 1, 2022; older 2% model descriptions are obsolete.
Primary-source findings with stated qualifications. Selected statutory provisions; not a full case-law, charter or tax audit.
25% voting-share derivative threshold differs sharply from 2% model thresholds. No default annual public benefit report or third-party assessment.
$0 / year, compared filings + minimum taxesOhio keeps this ordinary shield limited to directors and a default statutory liability rule. Director liability default uses clear-and-convincing deliberate injury/reckless disregard, with express opt-out.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 11 |
| Less paperwork | 25 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 3 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Ohio: Articles must expressly state one or more beneficial purposes; any ordinary lawful-profit purpose alone does not qualify. No whole-society/environment general-benefit mandate.
Why this changes the score: Ohio offers Benefit corporation.
Ohio offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Ohio: A statutory default director protection, rather than merely an optional charter clause; ordinary exceptions and capacity limits remain. Benefit-specific rule: §1701.96(D) expressly preserves other legal and contractual duties/remedies. This is no defense to campaign-finance penalties or non-purpose claims.
Why this changes the score: Ohio keeps this ordinary shield limited to directors and a default statutory liability rule. Director liability default uses clear-and-convincing deliberate injury/reckless disregard, with express opt-out.
Ohio has an identified director monetary-protection provision in the compared scope, which earns this credit. A statutory default director protection, rather than merely an optional charter clause; ordinary exceptions and capacity limits remain.
Ohio does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Ohio has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Ohio earns the benefit-specific credit for company. §1701.96(D) expressly preserves other legal and contractual duties/remedies. This is no defense to campaign-finance penalties or non-purpose claims.
Ohio has no separately credited benefit-specific monetary shield for directors. §1701.96(D) expressly preserves other legal and contractual duties/remedies. This is no defense to campaign-finance penalties or non-purpose claims.
Ohio has no separately credited benefit-specific monetary shield for officers. §1701.96(D) expressly preserves other legal and contractual duties/remedies. This is no defense to campaign-finance penalties or non-purpose claims.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Ohio: No default annual benefit report, public report or third-party-standard assessment under the benefit provisions. Assessment rule: No annual independent-standard assessment or certification mandate in the benefit provisions.
Why this changes the score: Ohio: No mandated benefit report; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Ohio: No mandated benefit report. This gets more ease-of-operation credit than an annual mandate because reporting is less frequent or not mandatory.
Ohio: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Ohio: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Ohio has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Ohio: Registry reporting: $0 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation with Ohio taxable gross receipts, including any required CAT group, at or below $6 million: $0 CAT and no former franchise/annual-minimum charge. This excludes local income taxes, report fees, and other operating taxes.
Why this changes the score: Ohio has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges.
Ohio has a compared recurring floor of $0 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation with Ohio taxable gross receipts, including any required CAT group, at or below $6 million: $0 CAT and no former franchise/annual-minimum charge. This excludes local income taxes, report fees, and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Ohio: Becoming a benefit company: Ordinary articles amendment: default two thirds voting power, charter can vary but not below majority; applicable class votes still required. No model-act automatic every-class two-thirds status vote. Public-exchange timing can block a later benefit-purpose amendment. Changing back: Ordinary articles amendment rule.
Why this changes the score: Ohio entry uses Ordinary articles amendment: default two thirds voting power, charter can vary but not below majority; applicable class votes still required.; exit uses Ordinary articles amendment rule.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Ohio: becoming a benefit company requires Ordinary articles amendment: default two thirds voting power, charter can vary but not below majority; applicable class votes still required. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Ohio: changing back requires Ordinary articles amendment rule. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Ohio: Directors shall consider shareholders, stated beneficial purposes and any charter priority/balancing method. Other stakeholder groups may be considered. Disclosure: No default annual benefit report, public report or third-party-standard assessment under the benefit provisions. Enforcement: Corporation may sue directly. Default derivative benefit-purpose standing is much narrower than 2% or any-shareholder states.
Why this changes the score: Ohio does not require public access in this compared variant. 25% voting-share derivative threshold differs sharply from 2% model thresholds. No default annual public benefit report or third-party assessment.
Ohio has no mandatory public access in the compared variant, so it gets no public-access credit. Voluntary publication is still possible. No default annual benefit report, public report or third-party-standard assessment under the benefit provisions.
Ohio: No mandated benefit report. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Ohio: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Ohio makes a mission duty mandatory, so it earns this credit. Directors shall consider shareholders, stated beneficial purposes and any charter priority/balancing method. Other stakeholder groups may be considered.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Ohio’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. charter-specific beneficial purpose; discretionary other stakeholders
Articles must expressly state one or more beneficial purposes; any ordinary lawful-profit purpose alone does not qualify. No whole-society/environment general-benefit mandate.
Directors shall consider shareholders, stated beneficial purposes and any charter priority/balancing method. Other stakeholder groups may be considered.
No default annual benefit report, public report or third-party-standard assessment under the benefit provisions.
No annual independent-standard assessment or certification mandate in the benefit provisions.
Corporation may sue directly. Default derivative benefit-purpose standing is much narrower than 2% or any-shareholder states.
§1701.96(D) expressly preserves other legal and contractual duties/remedies. This is no defense to campaign-finance penalties or non-purpose claims.
A statutory default director protection, rather than merely an optional charter clause; ordinary exceptions and capacity limits remain. Retained exceptions: Clear and convincing deliberate intent to injure corporation or reckless disregard; §1701.95 specified liability; Interested-transaction liability under §1701.60 preserved; Liability when acting in another capacity preserved; Specified unequal-consideration change-of-control transactions preserved. Activation: Automatic §1701.59(E) rule; articles/regulations can opt out by specific reference.
Entry: Ordinary articles amendment: default two thirds voting power, charter can vary but not below majority; applicable class votes still required.. Exit: Ordinary articles amendment rule.. No model-act automatic every-class two-thirds status vote. Public-exchange timing can block a later benefit-purpose amendment.
Ordinary: $0 / none. Ordinary for-profit corporation has no annual/biennial SOS report requirement; professional associations and LLPs differ. Benefit filing: $0 / none. No state annual benefit-report filing requirement. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Ohio no longer imposes the former state Corporation Franchise Tax: 2013 was the final report year. An ordinary corporation instead may face the Commercial Activity Tax on Ohio taxable gross receipts. Municipal net-profit income taxes are separate and can apply even when state CAT is zero. For 2025 and later, ordinary businesses with Ohio taxable gross receipts of $6 million or less are excluded from CAT. Above the $6 million annual exclusion, CAT is 0.26% of taxable gross receipts. The CAT annual minimum tax ended in 2024; there is no surviving ordinary state flat franchise/CAT minimum. Group aggregation can change eligibility. CAT measures receipts, so an income loss does not establish exemption. Ohio domicile or statutory bright-line presence can create nexus, while receipt sourcing and group aggregation determine the base/exclusion. Sales, employment, municipal net-profit, and other taxes require separate analysis. Active CAT accounts can have filing duties even below the exclusion. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation with Ohio taxable gross receipts, including any required CAT group, at or below $6 million: $0 CAT and no former franchise/annual-minimum charge. This excludes local income taxes, report fees, and other operating taxes.
25% voting-share derivative threshold differs sharply from 2% model thresholds. No default annual public benefit report or third-party assessment. Director liability default uses clear-and-convincing deliberate injury/reckless disregard, with express opt-out. Other-law/contract remedies are expressly preserved. A later conversion can be restricted for an initially purpose-free exchange-listed corporation.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Ordinary new private-company benefit votes use majority rather than model two-thirds every class. Any shareholder has benefit enforcement standing; no automatic parent-owner standing.
$250 / year, compared filings + minimum taxesOregon keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 6 |
| Becoming a benefit company and changing back | 20 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Oregon: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Oregon offers Benefit company: corporation or LLC.
Oregon offers Benefit company: corporation or LLC. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Oregon: Ordinary §60.047(2)(d) director charter exculpation retains express loyalty and bad-faith exclusions, unlike the narrower MBCA-style exception list. Benefit-specific rule: Optional benefit governor has special immunity except self-dealing, willful misconduct or knowing law violation; every benefit company must have a board of governors.
Why this changes the score: Oregon keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Oregon has an identified director monetary-protection provision in the compared scope, which earns this credit. Ordinary §60.047(2)(d) director charter exculpation retains express loyalty and bad-faith exclusions, unlike the narrower MBCA-style exception list.
Oregon does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Oregon requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Oregon earns the benefit-specific credit for company. Optional benefit governor has special immunity except self-dealing, willful misconduct or knowing law violation; every benefit company must have a board of governors.
Oregon earns the benefit-specific credit for directors. Optional benefit governor has special immunity except self-dealing, willful misconduct or knowing law violation; every benefit company must have a board of governors.
Oregon earns the benefit-specific credit for officers. Optional benefit governor has special immunity except self-dealing, willful misconduct or knowing law violation; every benefit company must have a board of governors.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Oregon: Annual shareholder report and all public website reports or free copies. Independent-standard assessment at least annually; no certification/audit requirement. Assessment rule: Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Why this changes the score: Oregon: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Oregon: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Oregon: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Oregon: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Oregon has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Oregon: Registry reporting: $100 per year on an annualized basis. Minimum tax/license used here: $150. Ordinary domestic C corporation actually doing business in Oregon, excise filer, Oregon sales below $500,000, no taxable profit. Includes $150 minimum; CAT below its payment threshold, registry fees and variable taxes excluded.
Why this changes the score: Oregon has a compared recurring floor of $250 per year, including $150 in identified minimum tax/license charges.
Oregon has a compared recurring floor of $250 per year, including $150 in identified minimum tax/license charges. Ordinary domestic C corporation actually doing business in Oregon, excise filer, Oregon sales below $500,000, no taxable profit. Includes $150 minimum; CAT below its payment threshold, registry fees and variable taxes excluded. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Oregon: Becoming a benefit company: Generally a majority of interests entitled to vote; higher ordinary-law, governing-document and separate-class requirements remain. Legacy traded-company rules can require more. ORS 60.754 permits an existing corporation to elect by articles amendment. ORS 60.756 generally requires a majority of entitled interests, preserving higher document/statutory and separate-class approvals. For entities with traded shares as of January 1, 2014, the special rule is two-thirds per class, reduced to majority per class when gross revenue is $200 million or less. Changing back: Same §60.756 voting structure.
Why this changes the score: Oregon entry uses Generally a majority of interests entitled to vote; higher ordinary-law, governing-document and separate-class requirements remain. Legacy traded-company rules can require more.; exit uses Same §60.756 voting structure.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Oregon: becoming a benefit company requires Generally a majority of interests entitled to vote; higher ordinary-law, governing-document and separate-class requirements remain. Legacy traded-company rules can require more. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Oregon: changing back requires Same §60.756 voting structure. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Oregon: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual shareholder report and all public website reports or free copies. Independent-standard assessment at least annually; no certification/audit requirement. Enforcement: §60.766 provides direct or derivative proceedings as appropriate, without a shareholder percentage floor.
Why this changes the score: Oregon requires public access to the report. Any shareholder has benefit enforcement standing; no automatic parent-owner standing. Public report statute contains no express financial/proprietary redaction allowance.
Oregon requires report access for people outside the company, so it earns public-access credit. Annual shareholder report and all public website reports or free copies. Independent-standard assessment at least annually; no certification/audit requirement.
Oregon: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Oregon: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Oregon makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Oregon’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit model with majority status vote and any-shareholder enforcement
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual shareholder report and all public website reports or free copies. Independent-standard assessment at least annually; no certification/audit requirement.
Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
§60.766 provides direct or derivative proceedings as appropriate, without a shareholder percentage floor.
Optional benefit governor has special immunity except self-dealing, willful misconduct or knowing law violation; every benefit company must have a board of governors.
Ordinary §60.047(2)(d) director charter exculpation retains express loyalty and bad-faith exclusions, unlike the narrower MBCA-style exception list. Retained exceptions: Loyalty breach; Bad faith, intentional misconduct, knowing law violation; §60.367 unlawful distributions; Improper personal benefit; Prior acts. Activation: Opt-in articles.
Entry: Majority of entitled interests for ordinary new private company, subject to greater governing-document/ordinary-law or separate-class requirements.. Exit: Same §60.756 voting structure.. Oregon’s ordinary private-company mission/status vote is majority, not automatic two-thirds every class. Legacy listed-company rule is different.
Ordinary: $100 / annual. Domestic business corporation annual renewal; foreign corporation rate is different. Benefit filing: $0 / none. No separate state benefit-report filing identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Corporate income/excise tax is 6.6% on the first $1 million of Oregon taxable income and 7.6% above it. Excise filers pay the greater of calculated tax or a sales-tier minimum. CAT is additional: $250 plus 0.57% above $1 million of taxable Oregon commercial activity, subject to exclusions and the permitted cost subtraction. For an ordinary C-corporation excise filer, minimum tax is $150 with Oregon sales below $500,000, rising to $100,000 at $100 million or more. Income-only filers do not owe this minimum. Registration alone does not create a tax return requirement. Benefit-company designation does not change tax status. Doing business determines excise status; Oregon-source income can trigger income tax instead. Multistate apportionment, Oregon sales and CAT activity are separate bases; registration is not a substitute for this analysis. Compared yearly minimum addition: $150. Ordinary domestic C corporation actually doing business in Oregon, excise filer, Oregon sales below $500,000, no taxable profit. Includes $150 minimum; CAT below its payment threshold, registry fees and variable taxes excluded.
Ordinary new private-company benefit votes use majority rather than model two-thirds every class. Any shareholder has benefit enforcement standing; no automatic parent-owner standing. Public report statute contains no express financial/proprietary redaction allowance. Benefit company also permits LLCs; professional corporations can elect specific benefit instead of general benefit under §60.758.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
90% entry/exit threshold exceeds common 2/3. Independent benefit director mandatory.
$26 / year, compared filings + minimum taxesIndiana keeps this ordinary shield limited to directors and a default statutory liability rule. Independent benefit director mandatory.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 19 |
| Less paperwork | 8 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 4 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Indiana: Mandatory general benefit; specific optional.
Why this changes the score: Indiana offers Benefit corporation.
Indiana offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Indiana: Automatic statutory director liability standard under IC 23-1-35-1(e): an act or omission must breach director duties and constitute willful misconduct or recklessness; negligence alone is insufficient. Indiana courts explain that this statutory director business-judgment protection does not extend to acts undertaken in a separate officer or shareholder capacity. This is a director conduct standard, not a blanket immunity from third-party or statutory liability. Benefit-specific rule: Company benefit-failure monetary bar; director/officer compliant-conduct and benefit-failure protection unless bylaws change it.
Why this changes the score: Indiana keeps this ordinary shield limited to directors and a default statutory liability rule. Independent benefit director mandatory.
Indiana has an identified director monetary-protection provision in the compared scope, which earns this credit. Automatic statutory director liability standard under IC 23-1-35-1(e): an act or omission must breach director duties and constitute willful misconduct or recklessness; negligence alone is insufficient. Indiana courts explain that this statutory director business-judgment protection does not extend to acts undertaken in a separate officer or shareholder capacity. This is a director conduct standard, not a blanket immunity from third-party or statutory liability.
Indiana does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Indiana has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Indiana earns the benefit-specific credit for company. Company benefit-failure monetary bar; director/officer compliant-conduct and benefit-failure protection unless bylaws change it.
Indiana earns the benefit-specific credit for directors. Company benefit-failure monetary bar; director/officer compliant-conduct and benefit-failure protection unless bylaws change it.
Indiana earns the benefit-specific credit for officers. Company benefit-failure monetary bar; director/officer compliant-conduct and benefit-failure protection unless bylaws change it.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Indiana: Annual; shareholder delivery earlier of 120 days or annual-report delivery; all reports public website; concurrent state filing. Assessment rule: Third-party standard required for annual assessment. Report and assessment need no audit/certification.
Why this changes the score: Indiana: Annual; Required outside framework; state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
Indiana: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Indiana: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Indiana: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Indiana requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Shall consider listed stakeholders. Independent benefit director mandatory, subject to professional/alternative-board exceptions.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Indiana: Registry reporting: $26 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation operating in Indiana with no Indiana adjusted gross income subject to tax after state adjustments: $0 ordinary corporate tax and no separate general franchise/capital minimum. Excludes report and operating taxes.
Why this changes the score: Indiana has a compared recurring floor of $26 per year, including $0 in identified minimum tax/license charges.
Indiana has a compared recurring floor of $26 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation operating in Indiana with no Indiana adjusted gross income subject to tax after state adjustments: $0 ordinary corporate tax and no separate general franchise/capital minimum. Excludes report and operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Indiana: Becoming a benefit company: 90% each class/series. 90% each class/series, including nonvoting, for entry/exit; 2/3 each class for specific-benefit changes. Changing back: 90% each class/series
Why this changes the score: Indiana entry uses 90% each class/series; exit uses 90% each class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Indiana: becoming a benefit company requires 90% each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Indiana: changing back requires 90% each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Indiana: Shall consider listed stakeholders. Independent benefit director mandatory, subject to professional/alternative-board exceptions. Disclosure: Annual; shareholder delivery earlier of 120 days or annual-report delivery; all reports public website; concurrent state filing. Enforcement: Company directly; derivative 2% class/series at act, director, 5% parent, designees.
Why this changes the score: Indiana requires public access to the report. 90% entry/exit threshold exceeds common 2/3. Benefit report is state-filed with separate fee.
Indiana requires report access for people outside the company, so it earns public-access credit. Annual; shareholder delivery earlier of 120 days or annual-report delivery; all reports public website; concurrent state filing.
Indiana: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Indiana: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Indiana makes a mission duty mandatory, so it earns this credit. Shall consider listed stakeholders. Independent benefit director mandatory, subject to professional/alternative-board exceptions.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Indiana’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit mandatory stakeholder model; 90% mission lock (archival primary)
Mandatory general benefit; specific optional.
Shall consider listed stakeholders. Independent benefit director mandatory, subject to professional/alternative-board exceptions.
Annual; shareholder delivery earlier of 120 days or annual-report delivery; all reports public website; concurrent state filing.
Third-party standard required for annual assessment. Report and assessment need no audit/certification.
Company directly; derivative 2% class/series at act, director, 5% parent, designees.
Company benefit-failure monetary bar; director/officer compliant-conduct and benefit-failure protection unless bylaws change it.
Automatic statutory director liability standard under IC 23-1-35-1(e): an act or omission must breach director duties and constitute willful misconduct or recklessness; negligence alone is insufficient. Indiana courts explain that this statutory director business-judgment protection does not extend to acts undertaken in a separate officer or shareholder capacity. This is a director conduct standard, not a blanket immunity from third-party or statutory liability.
Entry: 90% each class/series. Exit: 90% each class/series. 90% each class/series, including nonvoting, for entry/exit; 2/3 each class for specific-benefit changes.
Ordinary: $32 / biennial. Current INBiz lists $32 online/$50 paper every two years. Another SOS page still says $31 online; prefer current INBiz, note conflict. Benefit filing: $10 / annual. Separate benefit-report generic statutory filing charge is $15 on paper or $10 when filed electronically under IC 23-0.5-9-6. Use the paper amount when submitting on paper; the electronic amount applies only to an accepted electronic filing. Optional payment/processing and expedited charges are excluded; those are not part of the statutory amount. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Ordinary Indiana C-corporation adjusted gross income tax is a flat 4.9% of Indiana taxable adjusted gross income. The 4.9% rate has applied since July 1, 2021 and remains the current general-corporation rate. The ordinary civic/technology corporation is subject to income-based adjusted gross income tax, with no separate general fixed franchise or capital-tax minimum in this regime. Indiana's financial-institutions franchise tax is a separate rule for financial institutions and corporate entities deriving 80% of gross income from covered financial activities. Business entity report fees are separate. Doing business in Indiana can create income-tax liability regardless of charter state. Indiana generally apportions multistate corporate business income using a single receipts factor; services and most intangibles use Indiana market sourcing. State adjustments and federal statutory protection can change the result, and filing duties are separate from tax payable. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation operating in Indiana with no Indiana adjusted gross income subject to tax after state adjustments: $0 ordinary corporate tax and no separate general franchise/capital minimum. Excludes report and operating taxes.
90% entry/exit threshold exceeds common 2/3. Independent benefit director mandatory. Benefit report is state-filed with separate fee.
Primary-source findings with stated qualifications. Benefit features read in 2015 enacted HEA 1015, primary enrolled legislative text mirrored by LegiScan; Indiana agency-published 2017 harmonization code/commentary used for generic filing charges. Current official code application did not render readable text. Ordinary director scope is documented by the current official Indiana courts Commercial Court Treatise. These source dates are retained, not represented as fresh official-code retrieval. Selected statutory provisions; not a full case-law, charter or tax audit.
General-benefit corporations require a third-party assessment standard; specific-benefit corporations do not. Both variants file annual benefit reports with the state. State report and revocation consequence; retaining benefit name after status ends can automatically expire corporation.
$35 / year, compared filings + minimum taxesMinnesota keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Court equitable remedies can remove directors or appoint receiver.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 12 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Minnesota: Choose general benefit corporation (GBC, optional specific benefit too) or specific benefit corporation (SBC, specific only). General purpose is not required for SBC. Name must state GBC/general benefit corporation or SBC/specific benefit corporation.
Why this changes the score: Minnesota offers Public benefit corporation: general or specific.
Minnesota offers Public benefit corporation: general or specific. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Minnesota: Director-only charter monetary exculpation excludes loyalty, bad faith/intentional misconduct/knowing illegality, distribution liability, specified securities liability, improper benefit and pre-effective acts. Benefit-specific rule: Corporation barred from money damages for benefit failure. Director who performs required benefit duties not liable by virtue of being director; this is conditional compliance protection. The benefit chapter provides no distinct officer benefit-failure monetary shield.
Why this changes the score: Minnesota keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Court equitable remedies can remove directors or appoint receiver.
Minnesota has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only charter monetary exculpation excludes loyalty, bad faith/intentional misconduct/knowing illegality, distribution liability, specified securities liability, improper benefit and pre-effective acts.
Minnesota does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Minnesota requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Minnesota earns the benefit-specific credit for company. Corporation barred from money damages for benefit failure. Director who performs required benefit duties not liable by virtue of being director; this is conditional compliance protection. The benefit chapter provides no distinct officer benefit-failure monetary shield.
Minnesota earns the benefit-specific credit for directors. Corporation barred from money damages for benefit failure. Director who performs required benefit duties not liable by virtue of being director; this is conditional compliance protection. The benefit chapter provides no distinct officer benefit-failure monetary shield.
Minnesota has no separately credited benefit-specific monetary shield for officers. Corporation barred from money damages for benefit failure. Director who performs required benefit duties not liable by virtue of being director; this is conditional compliance protection. The benefit chapter provides no distinct officer benefit-failure monetary shield.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Minnesota: Annual state-filed report before April 1 for prior calendar year; CEO signs within 30 days of submission and board approves. SOS publishes reports; company website publication is not required here. Nonfiling revokes status. Reinstatement statute specifies $500 fee within 30 days; agency lists total reinstatement $540 mail/$560 counter. Failure to remove benefit designation within 30 days after status ends automatically expires corporate duration. Section 304A.301 requires filing with the Secretary of State and does not impose a separate automatic delivery to shareholders. Ordinary shareholder inspection rights under 302A.461 and financial-statement delivery upon written request under 302A.463 remain available; those are separate from benefit-report distribution. Assessment rule: General benefit corporation (GBC): third-party standard required in the annual report; specific benefit corporation (SBC): narrative of the stated specific benefit and board approval, without a mandatory third-party standard. Null in the aggregate boolean denotes this resolved variant distinction, not missing research. No third-party audit or certification required.
Why this changes the score: Minnesota: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Minnesota: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Minnesota: Required. Using an outside framework reduces flexibility credit but earns transparency credit. General benefit corporation (GBC): third-party standard required in the annual report; specific benefit corporation (SBC): narrative of the stated specific benefit and board approval, without a mandatory third-party standard. Null in the aggregate boolean denotes this resolved variant distinction, not missing research. No third-party audit or certification required.
Minnesota: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Minnesota has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Minnesota: Registry reporting: $35 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation with Minnesota property plus payroll plus sales/receipts below $1,280,000 in 2026, zero Minnesota taxable income, and no taxable AMT base: $0 regular tax, AMT, and minimum fee. Excludes report and operating taxes.
Why this changes the score: Minnesota has a compared recurring floor of $35 per year, including $0 in identified minimum tax/license charges.
Minnesota has a compared recurring floor of $35 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation with Minnesota property plus payroll plus sales/receipts below $1,280,000 in 2026, zero Minnesota taxable income, and no taxable AMT base: $0 regular tax, AMT, and minimum fee. Excludes report and operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Minnesota: Becoming a benefit company: 2/3 all issued/outstanding. 2/3 ALL issued/outstanding shares for entry/exit and required mission amendments; dissenters fair-value rights. Any voluntary termination, or revocation more than once, triggers a three-year waiting period to reelect. Changing back: 2/3 all issued/outstanding
Why this changes the score: Minnesota entry uses 2/3 all issued/outstanding; exit uses 2/3 all issued/outstanding. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Minnesota: becoming a benefit company requires 2/3 all issued/outstanding. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. 2/3 ALL issued/outstanding shares for entry/exit and required mission amendments; dissenters fair-value rights. Any voluntary termination, or revocation more than once, triggers a three-year waiting period to reelect.
Minnesota: changing back requires 2/3 all issued/outstanding. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. 2/3 ALL issued/outstanding shares for entry/exit and required mission amendments; dissenters fair-value rights. Any voluntary termination, or revocation more than once, triggers a three-year waiting period to reelect.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Minnesota: GBC directors shall consider general benefit and affected stakeholders. SBC directors shall consider chosen benefit/shareholders and may consider other stakeholders. Neither gives regular/presumptive/permanent financial priority; charter may identify priorities. Charter may opt in to disinterested-failure safe harbor. Disclosure: Annual state-filed report before April 1 for prior calendar year; CEO signs within 30 days of submission and board approves. SOS publishes reports; company website publication is not required here. Nonfiling revokes status. Reinstatement statute specifies $500 fee within 30 days; agency lists total reinstatement $540 mail/$560 counter. Failure to remove benefit designation within 30 days after status ends automatically expires corporate duration. Section 304A.301 requires filing with the Secretary of State and does not impose a separate automatic delivery to shareholders. Ordinary shareholder inspection rights under 302A.461 and financial-statement delivery upon written request under 302A.463 remain available; those are separate from benefit-report distribution. Enforcement: Only shareholders may assert benefit-failure claims; no percentage floor stated. Courts may terminate benefit status, remove directors, or appoint receiver to operate/liquidate for substantial/sustained failure.
Why this changes the score: Minnesota requires public access to the report. General-benefit corporations require a third-party assessment standard; specific-benefit corporations do not. Both variants file annual benefit reports with the state. State report and revocation consequence; retaining benefit name after status ends can automatically expire corporation.
Minnesota requires report access for people outside the company, so it earns public-access credit. Annual state-filed report before April 1 for prior calendar year; CEO signs within 30 days of submission and board approves. SOS publishes reports; company website publication is not required here. Nonfiling revokes status. Reinstatement statute specifies $500 fee within 30 days; agency lists total reinstatement $540 mail/$560 counter. Failure to remove benefit designation within 30 days after status ends automatically expires corporate duration. Section 304A.301 requires filing with the Secretary of State and does not impose a separate automatic delivery to shareholders. Ordinary shareholder inspection rights under 302A.461 and financial-statement delivery upon written request under 302A.463 remain available; those are separate from benefit-report distribution.
Minnesota: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Minnesota: Required. Using an outside framework reduces flexibility credit but earns transparency credit. General benefit corporation (GBC): third-party standard required in the annual report; specific benefit corporation (SBC): narrative of the stated specific benefit and board approval, without a mandatory third-party standard. Null in the aggregate boolean denotes this resolved variant distinction, not missing research. No third-party audit or certification required.
Minnesota makes a mission duty mandatory, so it earns this credit. GBC directors shall consider general benefit and affected stakeholders. SBC directors shall consider chosen benefit/shareholders and may consider other stakeholders. Neither gives regular/presumptive/permanent financial priority; charter may identify priorities. Charter may opt in to disinterested-failure safe harbor.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Minnesota’s full guide and sources ↓Compared variant: General benefit corporation. Separate general/specific benefit models; state-filed annual report
Choose general benefit corporation (GBC, optional specific benefit too) or specific benefit corporation (SBC, specific only). General purpose is not required for SBC. Name must state GBC/general benefit corporation or SBC/specific benefit corporation.
GBC directors shall consider general benefit and affected stakeholders. SBC directors shall consider chosen benefit/shareholders and may consider other stakeholders. Neither gives regular/presumptive/permanent financial priority; charter may identify priorities. Charter may opt in to disinterested-failure safe harbor.
Annual state-filed report before April 1 for prior calendar year; CEO signs within 30 days of submission and board approves. SOS publishes reports; company website publication is not required here. Nonfiling revokes status. Reinstatement statute specifies $500 fee within 30 days; agency lists total reinstatement $540 mail/$560 counter. Failure to remove benefit designation within 30 days after status ends automatically expires corporate duration. Section 304A.301 requires filing with the Secretary of State and does not impose a separate automatic delivery to shareholders. Ordinary shareholder inspection rights under 302A.461 and financial-statement delivery upon written request under 302A.463 remain available; those are separate from benefit-report distribution.
General benefit corporation (GBC): third-party standard required in the annual report; specific benefit corporation (SBC): narrative of the stated specific benefit and board approval, without a mandatory third-party standard. Null in the aggregate boolean denotes this resolved variant distinction, not missing research. No third-party audit or certification required.
Only shareholders may assert benefit-failure claims; no percentage floor stated. Courts may terminate benefit status, remove directors, or appoint receiver to operate/liquidate for substantial/sustained failure.
Corporation barred from money damages for benefit failure. Director who performs required benefit duties not liable by virtue of being director; this is conditional compliance protection. The benefit chapter provides no distinct officer benefit-failure monetary shield.
Director-only charter monetary exculpation excludes loyalty, bad faith/intentional misconduct/knowing illegality, distribution liability, specified securities liability, improper benefit and pre-effective acts.
Entry: 2/3 all issued/outstanding. Exit: 2/3 all issued/outstanding. 2/3 ALL issued/outstanding shares for entry/exit and required mission amendments; dissenters fair-value rights. Any voluntary termination, or revocation more than once, triggers a three-year waiting period to reelect.
Ordinary: $0 / annual. Timely ordinary domestic corporation annual renewal $0. Benefit filing: $35 / annual. Separate annual benefit report $35 mail/$55 online or in person (expedited). Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Minnesota ordinary C-corporation franchise tax is 9.8% of Minnesota taxable income. A 5.8% alternative minimum tax on the alternative minimum taxable base can apply when it exceeds regular tax, subject to exemptions and adjustments; this is not a flat annual minimum. A separate 2026 minimum fee uses the sum of Minnesota property, payroll, and sales/receipts: below $1,280,000, $0; $1,280,000-$2,559,999, $260; $2,560,000-$12,829,999, $770; $12,830,000-$25,639,999, $2,560; $25,640,000-$51,279,999, $5,140; $51,280,000 or more, $12,830. RICs, REITs, and REMICs are exempt; federal P.L. 86-272 protection without a Minnesota filing requirement can also remove the fee. Report fees are separate. Minnesota nexus and tax-specific sourcing determine the income calculation. The minimum-fee sum can differ from the apportionment amounts and changes annually for inflation, so a low revenue figure alone does not establish the $0 tier. Income, minimum fee, and registry/benefit-report charges must be calculated separately. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation with Minnesota property plus payroll plus sales/receipts below $1,280,000 in 2026, zero Minnesota taxable income, and no taxable AMT base: $0 regular tax, AMT, and minimum fee. Excludes report and operating taxes.
General-benefit corporations require a third-party assessment standard; specific-benefit corporations do not. Both variants file annual benefit reports with the state. State report and revocation consequence; retaining benefit name after status ends can automatically expire corporation. Court equitable remedies can remove directors or appoint receiver. Mandatory GBC/SBC naming designation. Three-year reentry wait after any voluntary termination or repeated revocation.
Primary-source findings with stated qualifications. Current official Minnesota statutory compilation is labelled 2025. Annual report statute and current 2026 agency reporting/fee guidance were read together. Selected statutory provisions; not a full case-law, charter or tax audit.
90% entry versus 2/3 exit. Automatic ordinary director damages threshold includes clear-and-convincing proof.
$190 / year, compared filings + minimum taxesKentucky adds ordinary officer coverage and a default statutory liability rule. Automatic ordinary director damages threshold includes clear-and-convincing proof.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 17 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 9 |
| Becoming a benefit company and changing back | 8 |
| Public transparency | 9 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Kentucky: Responsible/sustainable PBC must identify one or more specific public benefits; no mandatory broad general-benefit purpose.
Why this changes the score: Kentucky offers Public benefit corporation.
Kentucky offers Public benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Kentucky: Optional charter exculpation is director-only and excludes conflicting financial interest, bad faith/intentional misconduct/knowing illegality, unlawful distributions and improper benefit. Separately, directors AND officers automatically receive a statutory liability threshold: duty breach must be shown; monetary damages also require willful misconduct or wanton/reckless disregard of corporate/shareholder interests. Breach, culpability and legal causation require clear-and-convincing proof. Injunctive relief is not eliminated. optIn refers only to the additional director charter provision. Benefit-specific rule: No blanket corporate/director/officer benefit-failure monetary bar in the benefit-specific provisions. Charter may protect disinterested balancing failure; automatic ordinary director liability rule requires willful misconduct or wanton/reckless disregard, proved clearly and convincingly.
Why this changes the score: Kentucky adds ordinary officer coverage and a default statutory liability rule. Automatic ordinary director damages threshold includes clear-and-convincing proof.
Kentucky has an identified director monetary-protection provision in the compared scope, which earns this credit. Optional charter exculpation is director-only and excludes conflicting financial interest, bad faith/intentional misconduct/knowing illegality, unlawful distributions and improper benefit. Separately, directors AND officers automatically receive a statutory liability threshold: duty breach must be shown; monetary damages also require willful misconduct or wanton/reckless disregard of corporate/shareholder interests. Breach, culpability and legal causation require clear-and-convincing proof. Injunctive relief is not eliminated. optIn refers only to the additional director charter provision.
Kentucky extends ordinary protection to officers, which earns officer-scope credit. Optional charter exculpation is director-only and excludes conflicting financial interest, bad faith/intentional misconduct/knowing illegality, unlawful distributions and improper benefit. Separately, directors AND officers automatically receive a statutory liability threshold: duty breach must be shown; monetary damages also require willful misconduct or wanton/reckless disregard of corporate/shareholder interests. Breach, culpability and legal causation require clear-and-convincing proof. Injunctive relief is not eliminated. optIn refers only to the additional director charter provision.
Kentucky has a default statutory liability rule in the compared scope, so it earns the automatic-coverage credit. Articles and retained exceptions still matter.
Kentucky protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. No blanket corporate/director/officer benefit-failure monetary bar in the benefit-specific provisions. Charter may protect disinterested balancing failure; automatic ordinary director liability rule requires willful misconduct or wanton/reckless disregard, proved clearly and convincingly.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Kentucky: Annual statement to shareholders with objectives, standards, factual information and assessment. Public availability/third-party standard/certification optional; no state benefit-report filing specified. Assessment rule: Optional through articles/bylaws. Optional through articles/bylaws.
Why this changes the score: Kentucky: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Kentucky: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Kentucky: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Kentucky: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Kentucky has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Kentucky: Registry reporting: $15 per year on an annualized basis. Minimum tax/license used here: $175. Small active domestic C corporation in a regular year, no taxable profit and total gross receipts or gross profits at or below $3 million, with no special statutory exemption or incentive credit assumed. Annual registry reporting is separate.
Why this changes the score: Kentucky has a compared recurring floor of $190 per year, including $175 in identified minimum tax/license charges.
Kentucky has a compared recurring floor of $190 per year, including $175 in identified minimum tax/license charges. Small active domestic C corporation in a regular year, no taxable profit and total gross receipts or gross profits at or below $3 million, with no special statutory exemption or incentive credit assumed. Annual registry reporting is separate. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Kentucky: Becoming a benefit company: 90% each class. 90% of every outstanding class, voting/nonvoting, to enter PBC after stock payment; 2/3 every class to exit or covered nonbenefit merger. Dissent/appraisal rights for entry. Changing back: 2/3 each class
Why this changes the score: Kentucky entry uses 90% each class; exit uses 2/3 each class. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Kentucky: becoming a benefit company requires 90% each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. 90% of every outstanding class, voting/nonvoting, to enter PBC after stock payment; 2/3 every class to exit or covered nonbenefit merger. Dissent/appraisal rights for entry.
Kentucky: changing back requires 2/3 each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. 90% of every outstanding class, voting/nonvoting, to enter PBC after stock payment; 2/3 every class to exit or covered nonbenefit merger. Dissent/appraisal rights for entry.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Kentucky: Mandatory three-interest balance, no beneficiary duty; charter may opt in to treating disinterested balancing failures as neither bad faith nor loyalty breach. Disclosure: Annual statement to shareholders with objectives, standards, factual information and assessment. Public availability/third-party standard/certification optional; no state benefit-report filing specified. Enforcement: Shareholder derivative balancing suit requires 2% outstanding total, or listed lesser 2%/$2m, at institution; ordinary demand/ownership rules apply.
Why this changes the score: Kentucky does not require public access in this compared variant. Automatic ordinary director damages threshold includes clear-and-convincing proof. Annual shareholder-only benefit report is default; public/third-party optional.
Kentucky has no mandatory public access in the compared variant, so it gets no public-access credit. Voluntary publication is still possible. Annual statement to shareholders with objectives, standards, factual information and assessment. Public availability/third-party standard/certification optional; no state benefit-report filing specified.
Kentucky: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Kentucky: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Kentucky makes a mission duty mandatory, so it earns this credit. Mandatory three-interest balance, no beneficiary duty; charter may opt in to treating disinterested balancing failures as neither bad faith nor loyalty breach.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Kentucky’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Specific-benefit three-interest balancing; 90% entry
Responsible/sustainable PBC must identify one or more specific public benefits; no mandatory broad general-benefit purpose.
Mandatory three-interest balance, no beneficiary duty; charter may opt in to treating disinterested balancing failures as neither bad faith nor loyalty breach.
Annual statement to shareholders with objectives, standards, factual information and assessment. Public availability/third-party standard/certification optional; no state benefit-report filing specified.
Optional through articles/bylaws. Optional through articles/bylaws.
Shareholder derivative balancing suit requires 2% outstanding total, or listed lesser 2%/$2m, at institution; ordinary demand/ownership rules apply.
No blanket corporate/director/officer benefit-failure monetary bar in the benefit-specific provisions. Charter may protect disinterested balancing failure; automatic ordinary director liability rule requires willful misconduct or wanton/reckless disregard, proved clearly and convincingly.
Optional charter exculpation is director-only and excludes conflicting financial interest, bad faith/intentional misconduct/knowing illegality, unlawful distributions and improper benefit. Separately, directors AND officers automatically receive a statutory liability threshold: duty breach must be shown; monetary damages also require willful misconduct or wanton/reckless disregard of corporate/shareholder interests. Breach, culpability and legal causation require clear-and-convincing proof. Injunctive relief is not eliminated. optIn refers only to the additional director charter provision.
Entry: 90% each class. Exit: 2/3 each class. 90% of every outstanding class, voting/nonvoting, to enter PBC after stock payment; 2/3 every class to exit or covered nonbenefit merger. Dissent/appraisal rights for entry.
Ordinary: $15 / annual. Ordinary annual report $15. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Kentucky corporate income tax is a flat 5% for tax years beginning on or after January 1, 2018, on Kentucky taxable net income after state modifications, apportionment and losses. Ordinary multistate businesses generally use a receipts factor; industry rules differ. The Limited Liability Entity Tax (LLET) is separate from income tax. The small-business rule leaves a $175 minimum when total gross receipts or gross profits are $3 million or less. Above the phaseout range, tax is the smaller of 0.095% of Kentucky gross receipts or 0.75% of Kentucky gross profits, never below the ordinary minimum; income tax generally credits LLET above $175. The DOR FAQ distinguishes domestic organization from mere name reservation and from a foreign registration with no actual Kentucky activity. Kentucky receipts determine the operating LLET base while everywhere receipts/profits control the small-business threshold; the income-tax and LLET nexus protections are not identical. Compared yearly minimum addition: $175. Small active domestic C corporation in a regular year, no taxable profit and total gross receipts or gross profits at or below $3 million, with no special statutory exemption or incentive credit assumed. Annual registry reporting is separate.
90% entry versus 2/3 exit. Automatic ordinary director damages threshold includes clear-and-convincing proof. Annual shareholder-only benefit report is default; public/third-party optional.
Primary-source findings with stated qualifications. LLET requires entity/nexus-specific calculation; minimum is not a universal all-in annual cost. Selected statutory provisions; not a full case-law, charter or tax audit.
Consideration plus no permanent constituency priority, not Delaware balance text. Mandatory public annual narrative, third-party optional.
$120 / year, compared filings + minimum taxesTennessee keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 10 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 9 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 17 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Tennessee: For-profit benefit charter must name one or more public benefits; no separate broad general-benefit purpose required.
Why this changes the score: Tennessee offers For-profit benefit corporation.
Tennessee offers For-profit benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Tennessee: Optional charter monetary exculpation covers directors in internal corporation/shareholder fiduciary-duty claims. It does not extend the charter shield to officers acting solely as officers. Exceptions preserve loyalty breaches, bad faith, intentional misconduct, knowing law violations and unlawful-distribution liability; prospective only. Members of a substituted governing body are treated as directors. Ordinary good-faith conduct standards and officer/director indemnification are separate mechanisms. Director-only charter authority is confirmed by official SOS-form instructions and 2025 primary issuer filings; source dates are stated because current public code viewing requires acceptance of provider terms. Benefit-specific rule: Director performing mission duties not liable by virtue of being director; charter may protect disinterested failures from bad-faith/loyalty classification. No blanket corporate or distinct officer benefit-failure monetary bar in the enacted benefit text.
Why this changes the score: Tennessee keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Tennessee has an identified director monetary-protection provision in the compared scope, which earns this credit. Optional charter monetary exculpation covers directors in internal corporation/shareholder fiduciary-duty claims. It does not extend the charter shield to officers acting solely as officers. Exceptions preserve loyalty breaches, bad faith, intentional misconduct, knowing law violations and unlawful-distribution liability; prospective only. Members of a substituted governing body are treated as directors. Ordinary good-faith conduct standards and officer/director indemnification are separate mechanisms. Director-only charter authority is confirmed by official SOS-form instructions and 2025 primary issuer filings; source dates are stated because current public code viewing requires acceptance of provider terms.
Tennessee does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Tennessee requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Tennessee has no separately credited benefit-specific monetary shield for company. Director performing mission duties not liable by virtue of being director; charter may protect disinterested failures from bad-faith/loyalty classification. No blanket corporate or distinct officer benefit-failure monetary bar in the enacted benefit text.
Tennessee earns the benefit-specific credit for directors. Director performing mission duties not liable by virtue of being director; charter may protect disinterested failures from bad-faith/loyalty classification. No blanket corporate or distinct officer benefit-failure monetary bar in the enacted benefit text.
Tennessee has no separately credited benefit-specific monetary shield for officers. Director performing mission duties not liable by virtue of being director; charter may protect disinterested failures from bad-faith/loyalty classification. No blanket corporate or distinct officer benefit-failure monetary bar in the enacted benefit text.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Tennessee: Annual narrative delivered to shareholders within four months after fiscal year-end; all reports public website/latest free copy if no website. No state benefit-report filing specified. Assessment rule: Optional through charter/bylaws. Not required; charter/bylaws may add it.
Why this changes the score: Tennessee: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Tennessee: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Tennessee: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Tennessee: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Tennessee has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Tennessee: Registry reporting: $20 per year on an annualized basis. Minimum tax/license used here: $100. Small active nonexempt domestic C corporation with apportioned net worth at or below $40,000, no Tennessee taxable net earnings, and no standard business-license tax obligation: $100 franchise minimum. Below-$100,000 receipts remove ordinary business tax when correctly licensed; conditional $15 county/city minimal-activity license fees are outside this state-tax-only amount.
Why this changes the score: Tennessee has a compared recurring floor of $120 per year, including $100 in identified minimum tax/license charges.
Tennessee has a compared recurring floor of $120 per year, including $100 in identified minimum tax/license charges. Small active nonexempt domestic C corporation with apportioned net worth at or below $40,000, no Tennessee taxable net earnings, and no standard business-license tax obligation: $100 franchise minimum. Below-$100,000 receipts remove ordinary business tax when correctly licensed; conditional $15 county/city minimal-activity license fees are outside this state-tax-only amount. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Tennessee: Becoming a benefit company: 2/3 each class. 2/3 each outstanding class voting/nonvoting for entry/exit, chosen-benefit change and covered transactions; dissent payment rights. Surviving benefit purpose must be same/substantially same for stated merger exception. Changing back: 2/3 each class
Why this changes the score: Tennessee entry uses 2/3 each class; exit uses 2/3 each class. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Tennessee: becoming a benefit company requires 2/3 each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Tennessee: changing back requires 2/3 each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Tennessee: Director shall consider materially affected interests including shareholders and chosen benefits; shall not give regular/presumptive/permanent priority to a constituency. This is consideration/no-fixed-priority wording, not the three-interest balancing text. Charter may opt in to disinterested-failure safe harbor. Disclosure: Annual narrative delivered to shareholders within four months after fiscal year-end; all reports public website/latest free copy if no website. No state benefit-report filing specified. Enforcement: Derivative enforcement of director mission duties by 2% total shareholders at filing, or listed lesser 2%/$2m.
Why this changes the score: Tennessee requires public access to the report. Mandatory public annual narrative, third-party optional. Minimum franchise tax separate from $20 report.
Tennessee requires report access for people outside the company, so it earns public-access credit. Annual narrative delivered to shareholders within four months after fiscal year-end; all reports public website/latest free copy if no website. No state benefit-report filing specified.
Tennessee: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Tennessee: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Tennessee makes a mission duty mandatory, so it earns this credit. Director shall consider materially affected interests including shareholders and chosen benefits; shall not give regular/presumptive/permanent priority to a constituency. This is consideration/no-fixed-priority wording, not the three-interest balancing text. Charter may opt in to disinterested-failure safe harbor.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Tennessee’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. Specific-benefit mandatory consideration; annual public narrative report
For-profit benefit charter must name one or more public benefits; no separate broad general-benefit purpose required.
Director shall consider materially affected interests including shareholders and chosen benefits; shall not give regular/presumptive/permanent priority to a constituency. This is consideration/no-fixed-priority wording, not the three-interest balancing text. Charter may opt in to disinterested-failure safe harbor.
Annual narrative delivered to shareholders within four months after fiscal year-end; all reports public website/latest free copy if no website. No state benefit-report filing specified.
Optional through charter/bylaws. Not required; charter/bylaws may add it.
Derivative enforcement of director mission duties by 2% total shareholders at filing, or listed lesser 2%/$2m.
Director performing mission duties not liable by virtue of being director; charter may protect disinterested failures from bad-faith/loyalty classification. No blanket corporate or distinct officer benefit-failure monetary bar in the enacted benefit text.
Optional charter monetary exculpation covers directors in internal corporation/shareholder fiduciary-duty claims. It does not extend the charter shield to officers acting solely as officers. Exceptions preserve loyalty breaches, bad faith, intentional misconduct, knowing law violations and unlawful-distribution liability; prospective only. Members of a substituted governing body are treated as directors. Ordinary good-faith conduct standards and officer/director indemnification are separate mechanisms. Director-only charter authority is confirmed by official SOS-form instructions and 2025 primary issuer filings; source dates are stated because current public code viewing requires acceptance of provider terms.
Entry: 2/3 each class. Exit: 2/3 each class. 2/3 each outstanding class voting/nonvoting for entry/exit, chosen-benefit change and covered transactions; dissent payment rights. Surviving benefit purpose must be same/substantially same for stated merger exception.
Ordinary: $20 / annual. Ordinary corporation annual report $20, excluding $20 agent-change surcharge. Benefit filing: $0 / none. No mandatory state benefit-report filing in the cited reporting provision; no separate required filing fee identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Tennessee's ordinary excise tax is 6.5% of Tennessee taxable income. For tax years ending on or after December 31, 2024, taxpayers receive a standard deduction up to $50,000 of pre-apportioned adjusted net earnings; it cannot create or enlarge a net loss. Franchise tax is a separate net-worth tax. Franchise tax is 0.25% of Tennessee-apportioned net worth, with a $100 minimum for nonexempt entities incorporated, domesticated, qualified, or registered in Tennessee, whether active or inactive. The former property-value alternative minimum measure was repealed. Tennessee business tax also depends on taxable receipts/classification and has a $22 ordinary minimum for standard-license taxpayers; local minimal-activity licenses can renew for $15 each where receipts exceed $3,000 but are below $100,000. Franchise/excise registration, nexus, and apportionment matter independently of income. Ordinary apportioning taxpayers use single-sales-factor apportionment for tax years ending on or after December 31, 2025, subject to industry exceptions. Gross-receipts business tax and county/city licenses have separate sourcing, location, thresholds, and renewal rules; a zero-profit corporation can still owe these charges. Compared yearly minimum addition: $100. Small active nonexempt domestic C corporation with apportioned net worth at or below $40,000, no Tennessee taxable net earnings, and no standard business-license tax obligation: $100 franchise minimum. Below-$100,000 receipts remove ordinary business tax when correctly licensed; conditional $15 county/city minimal-activity license fees are outside this state-tax-only amount.
Consideration plus no permanent constituency priority, not Delaware balance text. Mandatory public annual narrative, third-party optional. Minimum franchise tax separate from $20 report.
Primary-source findings with stated qualifications. Benefit law read in adopted SA0433 (2015) and official enactment history; ordinary charter mechanism read in official agency-hosted form and current issuer primary filing, with the 2025 unofficial statutory republication used to cross-check exact exceptions. The paid-provider public-code terms were not accepted. Selected statutory provisions; not a full case-law, charter or tax audit.
Three-quarter entry vote differs from the usual two-thirds model. Benefit report is filed with the commission as well as shared publicly.
$105 / year, compared filings + minimum taxesArizona keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 9 |
| Becoming a benefit company and changing back | 10 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Arizona: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Arizona offers Benefit corporation.
Arizona offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Arizona: Charter can limit directors’ monetary liability to corporation/shareholders, subject to improper benefit, intentional harm, unlawful distributions and intentional criminal-law violations. No general officer extension in §10-202(B)(1). Benefit-specific rule: The benefit-failure shield is narrower in its wording than statutes expressly barring every compliant benefit-duty action. Ordinary conduct standards still apply.
Why this changes the score: Arizona keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Arizona has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter can limit directors’ monetary liability to corporation/shareholders, subject to improper benefit, intentional harm, unlawful distributions and intentional criminal-law violations. No general officer extension in §10-202(B)(1).
Arizona does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Arizona requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Arizona earns the benefit-specific credit for company. The benefit-failure shield is narrower in its wording than statutes expressly barring every compliant benefit-duty action. Ordinary conduct standards still apply.
Arizona earns the benefit-specific credit for directors. The benefit-failure shield is narrower in its wording than statutes expressly barring every compliant benefit-duty action. Ordinary conduct standards still apply.
Arizona earns the benefit-specific credit for officers. The benefit-failure shield is narrower in its wording than statutes expressly barring every compliant benefit-duty action. Ordinary conduct standards still apply.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Arizona: Annual assessment to shareholders, all benefit reports on public website or free on request, plus a separate Arizona Corporation Commission filing. Assessment rule: Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Why this changes the score: Arizona: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Arizona: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Arizona: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Arizona: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Arizona has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Arizona: Registry reporting: $55 per year on an annualized basis. Minimum tax/license used here: $50. Ordinary domestic C corporation actually operating in Arizona, required to file, no taxable net profit, no special exemption or credit assumption. Includes $50 corporate minimum; excludes registry fees and variable operating taxes.
Why this changes the score: Arizona has a compared recurring floor of $105 per year, including $50 in identified minimum tax/license charges.
Arizona has a compared recurring floor of $105 per year, including $50 in identified minimum tax/license charges. Ordinary domestic C corporation actually operating in Arizona, required to file, no taxable net profit, no special exemption or credit assumption. Includes $50 corporate minimum; excludes registry fees and variable operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Arizona: Becoming a benefit company: At least three quarters of every class or series, including otherwise nonvoting shares. Entry is harder than exit: a 75% class vote to become a benefit corporation, 66⅔% class vote to terminate. Changing back: At least two thirds of every class or series, including otherwise nonvoting shares.
Why this changes the score: Arizona entry uses At least three quarters of every class or series, including otherwise nonvoting shares.; exit uses At least two thirds of every class or series, including otherwise nonvoting shares.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Arizona: becoming a benefit company requires At least three quarters of every class or series, including otherwise nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Entry is harder than exit: a 75% class vote to become a benefit corporation, 66⅔% class vote to terminate.
Arizona: changing back requires At least two thirds of every class or series, including otherwise nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Entry is harder than exit: a 75% class vote to become a benefit corporation, 66⅔% class vote to terminate.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Arizona: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual assessment to shareholders, all benefit reports on public website or free on request, plus a separate Arizona Corporation Commission filing. Enforcement: The corporation can sue directly. Shareholder derivative standing generally requires 2% total ownership; it is not the 2%-of-one-class formulation.
Why this changes the score: Arizona requires public access to the report. Benefit report is filed with the commission as well as shared publicly.
Arizona requires report access for people outside the company, so it earns public-access credit. Annual assessment to shareholders, all benefit reports on public website or free on request, plus a separate Arizona Corporation Commission filing.
Arizona: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Arizona: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Arizona makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Arizona’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit model with distinct entry vote and commission filing
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual assessment to shareholders, all benefit reports on public website or free on request, plus a separate Arizona Corporation Commission filing.
Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
The corporation can sue directly. Shareholder derivative standing generally requires 2% total ownership; it is not the 2%-of-one-class formulation.
The benefit-failure shield is narrower in its wording than statutes expressly barring every compliant benefit-duty action. Ordinary conduct standards still apply.
Charter can limit directors’ monetary liability to corporation/shareholders, subject to improper benefit, intentional harm, unlawful distributions and intentional criminal-law violations. No general officer extension in §10-202(B)(1). Retained exceptions: Improper financial benefit; Intentional infliction of harm; Specified unlawful distributions; Intentional criminal-law violation; Acts before the provision becomes effective. Activation: Opt-in articles of incorporation.
Entry: At least three quarters of every class or series, including otherwise nonvoting shares.. Exit: At least two thirds of every class or series, including otherwise nonvoting shares.. Entry is harder than exit: a 75% class vote to become a benefit corporation, 66⅔% class vote to terminate.
Ordinary: $45 / annual. Domestic for-profit normal annual report, regular processing. Benefit filing: $10 / annual. Separate annual benefit report fee; additional to normal annual report. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
General C-corporation income tax is the greater of 4.9% of Arizona taxable net income or $50. The minimum applies to corporations required to file an Arizona return; S-corporation and exempt-entity rules differ. The $50 annual corporate income-tax minimum is separate from registry annual-report and benefit-report charges. It is a tax-return minimum, not a formation fee. A multistate corporation allocates and apportions income attributable to Arizona. Nexus, federal protections and classification affect filing; formation in another state does not remove Arizona business obligations. Compared yearly minimum addition: $50. Ordinary domestic C corporation actually operating in Arizona, required to file, no taxable net profit, no special exemption or credit assumption. Includes $50 corporate minimum; excludes registry fees and variable operating taxes.
Three-quarter entry vote differs from the usual two-thirds model. Benefit report is filed with the commission as well as shared publicly. Ordinary Arizona corporations already have broad default powers to pursue benefit and consider stakeholders under §10-2401(F); benefit designation makes specified duties mandatory.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Biennial private shareholder reporting contrasts with most annual public-report states. Eligible officer charter protection is narrower than director protection.
$300 / year, compared filings + minimum taxesDelaware adds ordinary officer coverage; the charter must elect the ordinary protection. Eligible officer charter protection is narrower than director protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 12 |
| Less paperwork | 23 |
| Yearly state costs and taxes | 6 |
| Becoming a benefit company and changing back | 20 |
| Public transparency | 6 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Delaware: Charter identifies one or more specific public benefits; the model general-public-benefit purpose is not separately mandated.
Why this changes the score: Delaware offers Public benefit corporation.
Delaware offers Public benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Delaware: Opt-in charter protection for directors and eligible officers. Exceptions include loyalty, bad faith, intentional misconduct, knowing illegality and improper benefit. Officer coverage excludes corporation/derivative claims; directors also retain unlawful-distribution exposure. Benefit-specific rule: Informed, disinterested, non-irrational decisions satisfy the duty. No duty to benefit beneficiaries solely as such. Absent conflict, balancing failure is not bad faith or disloyalty for exculpation/indemnification unless charter changes this.
Why this changes the score: Delaware adds ordinary officer coverage; the charter must elect the ordinary protection. Eligible officer charter protection is narrower than director protection.
Delaware has an identified director monetary-protection provision in the compared scope, which earns this credit. Opt-in charter protection for directors and eligible officers. Exceptions include loyalty, bad faith, intentional misconduct, knowing illegality and improper benefit. Officer coverage excludes corporation/derivative claims; directors also retain unlawful-distribution exposure.
Delaware extends ordinary protection to officers in a limited eligible-officer scope, so it receives less credit than the broader officer category. Opt-in charter protection for directors and eligible officers. Exceptions include loyalty, bad faith, intentional misconduct, knowing illegality and improper benefit. Officer coverage excludes corporation/derivative claims; directors also retain unlawful-distribution exposure.
Delaware requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Delaware protects certain properly made or classified benefit decisions. This is narrower than an express company/director/officer bar on damages merely for missing the mission, so only the narrower safe-harbor credit applies. Informed, disinterested, non-irrational decisions satisfy the duty. No duty to benefit beneficiaries solely as such. Absent conflict, balancing failure is not bad faith or disloyalty for exculpation/indemnification unless charter changes this.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Delaware: At least biennial stockholder statement; more frequent or public reporting can be elected. Assessment rule: Third-party standard, public release and certification are optional governing-document commitments.
Why this changes the score: Delaware: At least biennial; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Delaware: At least biennial. This gets more ease-of-operation credit than an annual mandate because reporting is less frequent or not mandatory.
Delaware: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Delaware: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Delaware has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Delaware: Registry reporting: $50 per year on an annualized basis. Minimum tax/license used here: $250. Active domestic general-services C corporation operating at one Delaware location in a regular year, at the $175 authorized-shares franchise minimum plus the $75 annual DOR business license; no taxable profit and receipts within the category's gross-receipts exclusion. Add the separate $50 registry report only once. If comparing formation-only companies operating entirely elsewhere, use $175 instead.
Why this changes the score: Delaware has a compared recurring floor of $300 per year, including $250 in identified minimum tax/license charges.
Delaware has a compared recurring floor of $300 per year, including $250 in identified minimum tax/license charges. Active domestic general-services C corporation operating at one Delaware location in a regular year, at the $175 authorized-shares franchise minimum plus the $75 annual DOR business license; no taxable profit and receipts within the category's gross-receipts exclusion. Add the separate $50 registry report only once. If comparing formation-only companies operating entirely elsewhere, use $175 instead. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Delaware: Becoming a benefit company: Board approval plus a majority of all outstanding stock entitled to vote; applicable separate class votes and higher charter requirements remain. No special PBC supermajority remains for ordinary stock corporations. Use normal charter-amendment/transaction rules: ordinarily majority outstanding entitled shares, with applicable class votes and charter requirements. Changing back: ordinary
Why this changes the score: Delaware entry uses Board approval plus a majority of all outstanding stock entitled to vote; applicable separate class votes and higher charter requirements remain.; exit uses ordinary. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Delaware: becoming a benefit company requires Board approval plus a majority of all outstanding stock entitled to vote; applicable separate class votes and higher charter requirements remain. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Delaware: changing back requires ordinary. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Delaware: Balance stockholder financial interests, materially affected persons, and the charter benefit. Disclosure: At least biennial stockholder statement; more frequent or public reporting can be elected. Enforcement: Balancing actions require 2% of all outstanding shares, or for listed companies the lower $2 million alternative. Other derivative conditions remain.
Why this changes the score: Delaware does not require public access in this compared variant. Biennial private shareholder reporting contrasts with most annual public-report states.
Delaware has no mandatory public access in the compared variant, so it gets no public-access credit. Voluntary publication is still possible. At least biennial stockholder statement; more frequent or public reporting can be elected.
Delaware: At least biennial. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Delaware: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit.
Delaware makes a mission duty mandatory, so it earns this credit. Balance stockholder financial interests, materially affected persons, and the charter benefit.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Delaware’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. specific-benefit balancing
Charter identifies one or more specific public benefits; the model general-public-benefit purpose is not separately mandated.
Balance stockholder financial interests, materially affected persons, and the charter benefit.
At least biennial stockholder statement; more frequent or public reporting can be elected.
Third-party standard, public release and certification are optional governing-document commitments.
Balancing actions require 2% of all outstanding shares, or for listed companies the lower $2 million alternative. Other derivative conditions remain.
Informed, disinterested, non-irrational decisions satisfy the duty. No duty to benefit beneficiaries solely as such. Absent conflict, balancing failure is not bad faith or disloyalty for exculpation/indemnification unless charter changes this.
Opt-in charter protection for directors and eligible officers. Exceptions include loyalty, bad faith, intentional misconduct, knowing illegality and improper benefit. Officer coverage excludes corporation/derivative claims; directors also retain unlawful-distribution exposure.
Entry: ordinary. Exit: ordinary. No special PBC supermajority remains for ordinary stock corporations. Use normal charter-amendment/transaction rules: ordinarily majority outstanding entitled shares, with applicable class votes and charter requirements.
Ordinary: $50 / annual. Domestic stock corporation annual report. Benefit filing: $0 / none. No separate PBC report filing mandated. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Nonexempt C corporations pay 8.7% of Delaware taxable income. Merely maintaining a statutory corporate office without doing business in Delaware is an express income-tax exemption. Ordinary multistate corporations use the current statutory sales-factor apportionment, not the obsolete equally weighted three-factor description on some agency pages. Domestic stock corporations owe franchise tax: authorized-shares method minimum $175, or assumed-par-value-capital method minimum $400. The separate annual-report fee is $50. A general-services business actually operating in Delaware also needs a $75 annual business license for its first location; gross-receipts tax is 0.3983% above the applicable $100,000 monthly exclusion for that category. Delaware Code sections 1902–1904 separate incorporation-only exemptions from business income sourced to Delaware and require nonexempt returns even without taxable income. Business-license and gross-receipts classifications follow actual activity. A Delaware charter does not eliminate income, franchise, sales or payroll taxes in states where the company operates. Compared yearly minimum addition: $250. Active domestic general-services C corporation operating at one Delaware location in a regular year, at the $175 authorized-shares franchise minimum plus the $75 annual DOR business license; no taxable profit and receipts within the category's gross-receipts exclusion. Add the separate $50 registry report only once. If comparing formation-only companies operating entirely elsewhere, use $175 instead.
Biennial private shareholder reporting contrasts with most annual public-report states. Eligible officer charter protection is narrower than director protection. Delaware’s broad corporate adoption supports investor familiarity as an inference, not a valuation or financing guarantee.
Current code and agency fee schedule. Financing suitability, court outcomes, actual taxes and operating-state registration require facts specific to the company. Selected statutory provisions; not a full case-law, charter or tax audit.
Explicit general-benefit test scales to company size and nature. Statutory amendments use voting shares and entitled classes, rather than automatic every-class votes.
$62.5 / year, compared filings + minimum taxesNew Mexico keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. No express separate director/officer benefit monetary shield in the compact statute. Public-company report preparation by an independent director differs from a separate required benefit-director office. Any equity ownership or more than $2,000 director/employee compensation preserves negligence exposure under the ordinary charter clause; this materially limits founder protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 8 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
New Mexico: General social/environmental benefit is mandatory, measured relative to company size and business nature; charter may specify additional purposes.
Why this changes the score: New Mexico offers Benefit corporation designation.
New Mexico offers Benefit corporation designation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
New Mexico: New Mexico is unusually restrictive for founders: any ownership, or annual director/employee compensation above $2,000, preserves liability for negligent fiduciary conduct. The limited negligence shield available to unpaid/low-paid nonowner directors does not extend to founder directors. Benefit-specific rule: The compact statute expressly shields the corporation’s benefit-failure liability but does not reproduce model-act director/officer monetary bars.
Why this changes the score: New Mexico keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. No express separate director/officer benefit monetary shield in the compact statute. Public-company report preparation by an independent director differs from a separate required benefit-director office. Any equity ownership or more than $2,000 director/employee compensation preserves negligence exposure under the ordinary charter clause; this materially limits founder protection.
New Mexico has an identified director monetary-protection provision in the compared scope, which earns this credit. New Mexico is unusually restrictive for founders: any ownership, or annual director/employee compensation above $2,000, preserves liability for negligent fiduciary conduct. The limited negligence shield available to unpaid/low-paid nonowner directors does not extend to founder directors.
New Mexico does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
New Mexico requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
New Mexico earns the benefit-specific credit for company. The compact statute expressly shields the corporation’s benefit-failure liability but does not reproduce model-act director/officer monetary bars.
New Mexico has no separately credited benefit-specific monetary shield for directors. The compact statute expressly shields the corporation’s benefit-failure liability but does not reproduce model-act director/officer monetary bars.
New Mexico has no separately credited benefit-specific monetary shield for officers. The compact statute expressly shields the corporation’s benefit-failure liability but does not reproduce model-act director/officer monetary bars.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
New Mexico: Annual public/shareholder benefit report. For a publicly traded benefit corporation, an independent board director prepares it; private companies may appoint one. Assessment rule: Annual social/environmental performance assessment against an independent third-party standard is required. No paid-certification requirement appears in the enacted section.
Why this changes the score: New Mexico: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
New Mexico: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
New Mexico: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New Mexico: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
New Mexico has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
New Mexico: Registry reporting: $12.5 per year on an annualized basis. Minimum tax/license used here: $50. Ordinary domestic C corporation operating in New Mexico, no taxable profit. Includes $50 franchise charge only. Variable GRT on receipts may be positive despite no profit and is excluded, along with registry and other operating taxes.
Why this changes the score: New Mexico has a compared recurring floor of $62.5 per year, including $50 in identified minimum tax/license charges.
New Mexico has a compared recurring floor of $62.5 per year, including $50 in identified minimum tax/license charges. Ordinary domestic C corporation operating in New Mexico, no taxable profit. Includes $50 franchise charge only. Variable GRT on receipts may be positive despite no profit and is excluded, along with registry and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
New Mexico: Becoming a benefit company: Two thirds of voting shares; class approval only when that class is entitled to vote. Unlike the model, the enacted section does not automatically enfranchise every otherwise nonvoting class for benefit amendments. Changing back: Same two-thirds voting-share amendment rule; delete required benefit provisions.
Why this changes the score: New Mexico entry uses Two thirds of voting shares; class approval only when that class is entitled to vote.; exit uses Same two-thirds voting-share amendment rule; delete required benefit provisions.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
New Mexico: becoming a benefit company requires Two thirds of voting shares; class approval only when that class is entitled to vote. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
New Mexico: changing back requires Same two-thirds voting-share amendment rule; delete required benefit provisions. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
New Mexico: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual public/shareholder benefit report. For a publicly traded benefit corporation, an independent board director prepares it; private companies may appoint one. Enforcement: Corporation direct or enumerated derivative plaintiffs; class ownership can qualify even below 2% total ownership.
Why this changes the score: New Mexico requires public access to the report. Public-company report preparation by an independent director differs from a separate required benefit-director office. Any equity ownership or more than $2,000 director/employee compensation preserves negligence exposure under the ordinary charter clause; this materially limits founder protection.
New Mexico requires report access for people outside the company, so it earns public-access credit. Annual public/shareholder benefit report. For a publicly traded benefit corporation, an independent board director prepares it; private companies may appoint one.
New Mexico: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
New Mexico: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New Mexico makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download New Mexico’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. compact general-benefit statute with different voting/class rule
General social/environmental benefit is mandatory, measured relative to company size and business nature; charter may specify additional purposes.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual public/shareholder benefit report. For a publicly traded benefit corporation, an independent board director prepares it; private companies may appoint one.
Annual social/environmental performance assessment against an independent third-party standard is required. No paid-certification requirement appears in the enacted section.
Corporation direct or enumerated derivative plaintiffs; class ownership can qualify even below 2% total ownership.
The compact statute expressly shields the corporation’s benefit-failure liability but does not reproduce model-act director/officer monetary bars.
New Mexico is unusually restrictive for founders: any ownership, or annual director/employee compensation above $2,000, preserves liability for negligent fiduciary conduct. The limited negligence shield available to unpaid/low-paid nonowner directors does not extend to founder directors. Retained exceptions: For a director with any ownership interest, or annual director/employee compensation above $2,000: negligence, willful misconduct or recklessness when the §53-11-35(B) director duty is breached; For a director with no ownership interest and compensation of $2,000 or less: willful misconduct or recklessness when that duty is breached; Actions/inactions outside board or committee meetings or authorized written consent; Acts before the articles provision becomes effective; Officer conduct is outside the director-only articles provision. Activation: An articles provision under §53-12-2(E); applies prospectively to board/committee meeting or unanimous written-consent actions under §53-11-43.
Entry: Two thirds of voting shares; class approval only when that class is entitled to vote.. Exit: Same two-thirds voting-share amendment rule; delete required benefit provisions.. Unlike the model, the enacted section does not automatically enfranchise every otherwise nonvoting class for benefit amendments.
Ordinary: $25 / biennial. §53-2-1(A)(16) sets the corporate-report base fee at $25; ordinary for-profit corporate reporting is biennial under §53-5-2. Card-handling, supplemental-report and late fees are separate. Benefit filing: $0 / none. No state benefit-report filing in the enacted section. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Corporate income tax is a flat 5.9% of New Mexico taxable income from 2025, replacing the prior brackets. Separately, gross receipts tax can apply to sales/services regardless of profit, with location-specific combined rates and statutory deductions/exemptions. A corporation having or exercising its New Mexico franchise owes $50 annual franchise tax, even when inactive or owing no corporate income tax. The $50 is separate from income tax and variable GRT. New Mexico-source income and nexus determine income/GRT obligations. Multistate apportionment and GRT sourcing differ; an out-of-state formation does not remove tax on New Mexico operations. Compared yearly minimum addition: $50. Ordinary domestic C corporation operating in New Mexico, no taxable profit. Includes $50 franchise charge only. Variable GRT on receipts may be positive despite no profit and is excluded, along with registry and other operating taxes.
Explicit general-benefit test scales to company size and nature. Statutory amendments use voting shares and entitled classes, rather than automatic every-class votes. No express separate director/officer benefit monetary shield in the compact statute. Public-company report preparation by an independent director differs from a separate required benefit-director office. Any equity ownership or more than $2,000 director/employee compensation preserves negligence exposure under the ordinary charter clause; this materially limits founder protection.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Separate $70 state benefit-report filing fee. Any shareholder can bring a benefit derivative claim; no 2% floor.
$220 / year, compared filings + minimum taxesArkansas keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Independent benefit director is optional. Arkansas expressly excludes all third-party liability from this ordinary director charter protection.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 6 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Arkansas: General public benefit is mandatory; a specific benefit may be added without replacing the general purpose.
Why this changes the score: Arkansas offers Benefit corporation.
Arkansas offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Arkansas: Articles may eliminate or limit directors’ personal liability to the corporation or stockholders for monetary fiduciary-duty damages. Officers are outside this charter authorization. Exceptions preserve loyalty breaches, bad faith, intentional misconduct, knowing law violations, unlawful distributions, improper personal benefit, and any third-party liability. Protection starts when the charter clause takes effect; earlier acts remain exposed. Benefit-specific rule: Company cannot owe monetary damages under benefit chapter for benefit failure. Directors and officers have benefit-failure monetary protection and protection for compliant acts; special benefit director exceptions include self-dealing, willful misconduct and knowing law violations.
Why this changes the score: Arkansas keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Independent benefit director is optional. Arkansas expressly excludes all third-party liability from this ordinary director charter protection.
Arkansas has an identified director monetary-protection provision in the compared scope, which earns this credit. Articles may eliminate or limit directors’ personal liability to the corporation or stockholders for monetary fiduciary-duty damages. Officers are outside this charter authorization. Exceptions preserve loyalty breaches, bad faith, intentional misconduct, knowing law violations, unlawful distributions, improper personal benefit, and any third-party liability. Protection starts when the charter clause takes effect; earlier acts remain exposed.
Arkansas does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Arkansas requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Arkansas earns the benefit-specific credit for company. Company cannot owe monetary damages under benefit chapter for benefit failure. Directors and officers have benefit-failure monetary protection and protection for compliant acts; special benefit director exceptions include self-dealing, willful misconduct and knowing law violations.
Arkansas earns the benefit-specific credit for directors. Company cannot owe monetary damages under benefit chapter for benefit failure. Directors and officers have benefit-failure monetary protection and protection for compliant acts; special benefit director exceptions include self-dealing, willful misconduct and knowing law violations.
Arkansas earns the benefit-specific credit for officers. Company cannot owe monetary damages under benefit chapter for benefit failure. Directors and officers have benefit-failure monetary protection and protection for compliant acts; special benefit director exceptions include self-dealing, willful misconduct and knowing law violations.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Arkansas: Annual report goes to shareholders before franchise-tax due date or with annual financial report, is published on public website (all reports; latest free copy if no website), and concurrently filed with Secretary of State; specified compensation/proprietary information may be removed. Assessment rule: Annual social/environmental assessment must use a third-party standard. Assessment need not be performed, audited or certified by the standard provider.
Why this changes the score: Arkansas: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Arkansas: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Arkansas: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Arkansas: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Arkansas has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Arkansas: Registry reporting: $70 per year on an annualized basis. Minimum tax/license used here: $150. Small active domestic stock C corporation operating in Arkansas, no Arkansas taxable profit, and Arkansas-attributed capital stock of $50,000 or less: the $150 franchise minimum applies. Tax only, excluding report and local/industry fees.
Why this changes the score: Arkansas has a compared recurring floor of $220 per year, including $150 in identified minimum tax/license charges.
Arkansas has a compared recurring floor of $220 per year, including $150 in identified minimum tax/license charges. Small active domestic stock C corporation operating in Arkansas, no Arkansas taxable profit, and Arkansas-attributed capital stock of $50,000 or less: the $150 franchise minimum applies. Tax only, excluding report and local/industry fees. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Arkansas: Becoming a benefit company: 2/3 each class/series. Entry, exit and covered fundamental transactions require 2/3 of each class/series, including otherwise nonvoting shares. Nonordinary sale of all/substantially all assets also requires minimum vote. Changing back: 2/3 each class/series
Why this changes the score: Arkansas entry uses 2/3 each class/series; exit uses 2/3 each class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Arkansas: becoming a benefit company requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Arkansas: changing back requires 2/3 each class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Arkansas: Directors must consider the listed shareholders, workforce, customers, communities, environment, long-term interests and benefit purposes; priority may be set in articles. Benefit director is optional and ordinarily independent. Disclosure: Annual report goes to shareholders before franchise-tax due date or with annual financial report, is published on public website (all reports; latest free copy if no website), and concurrently filed with Secretary of State; specified compensation/proprietary information may be removed. Enforcement: Corporation directly; derivatively any shareholder, director, 5% parent-equity holders, or charter/bylaw designees. No minimum corporation-share percentage for its own shareholder.
Why this changes the score: Arkansas requires public access to the report. Separate $70 state benefit-report filing fee. Any shareholder can bring a benefit derivative claim; no 2% floor.
Arkansas requires report access for people outside the company, so it earns public-access credit. Annual report goes to shareholders before franchise-tax due date or with annual financial report, is published on public website (all reports; latest free copy if no website), and concurrently filed with Secretary of State; specified compensation/proprietary information may be removed.
Arkansas: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Arkansas: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Arkansas makes a mission duty mandatory, so it earns this credit. Directors must consider the listed shareholders, workforce, customers, communities, environment, long-term interests and benefit purposes; priority may be set in articles. Benefit director is optional and ordinarily independent.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Arkansas’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit mandatory stakeholder model; state-filed report
General public benefit is mandatory; a specific benefit may be added without replacing the general purpose.
Directors must consider the listed shareholders, workforce, customers, communities, environment, long-term interests and benefit purposes; priority may be set in articles. Benefit director is optional and ordinarily independent.
Annual report goes to shareholders before franchise-tax due date or with annual financial report, is published on public website (all reports; latest free copy if no website), and concurrently filed with Secretary of State; specified compensation/proprietary information may be removed.
Annual social/environmental assessment must use a third-party standard. Assessment need not be performed, audited or certified by the standard provider.
Corporation directly; derivatively any shareholder, director, 5% parent-equity holders, or charter/bylaw designees. No minimum corporation-share percentage for its own shareholder.
Company cannot owe monetary damages under benefit chapter for benefit failure. Directors and officers have benefit-failure monetary protection and protection for compliant acts; special benefit director exceptions include self-dealing, willful misconduct and knowing law violations.
Articles may eliminate or limit directors’ personal liability to the corporation or stockholders for monetary fiduciary-duty damages. Officers are outside this charter authorization. Exceptions preserve loyalty breaches, bad faith, intentional misconduct, knowing law violations, unlawful distributions, improper personal benefit, and any third-party liability. Protection starts when the charter clause takes effect; earlier acts remain exposed. Retained exceptions: Breach of loyalty to the corporation or its stockholders; Acts or omissions in bad faith; intentional misconduct; knowing law violations; Unlawful distributions: original Act 958 §64-821, codified §4-27-833; Transaction yielding an improper personal benefit; Any action, omission, transaction or duty breach creating liability to someone other than the corporation or stockholder.
Entry: 2/3 each class/series. Exit: 2/3 each class/series. Entry, exit and covered fundamental transactions require 2/3 of each class/series, including otherwise nonvoting shares. Nonordinary sale of all/substantially all assets also requires minimum vote.
Ordinary: $0 / annual. The annual corporation franchise-tax report is filed with the franchise tax; there is no separately listed original annual report charge. Minimum franchise tax is $150 below, counted once. Optional online payment processing charges and late penalties are separate. Benefit filing: $70 / annual. Separate annual benefit-report state filing fee is $70 in enacted statute. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
For tax years beginning on or after January 1, 2024, ordinary C-corporation income tax has marginal rates of 1% on the first $3,000, 2% on the next $3,000, 3% on the next $5,000, and 4.3% above $11,000 of Arkansas taxable income. The official table gives $240 plus 4.3% of income above $11,000. The annual stock-corporation franchise tax is 0.3% of issued and outstanding capital stock attributed to Arkansas using the property ratio, with a $150 minimum. No-par shares are assigned $25 per share for this calculation. All registered for-profit corporations owe the tax; it continues until dissolution, withdrawal, or merger, including while revoked. The $300 nonstock-corporation rule is outside this stock-corporation scope. Incorporation does not substitute for measuring taxable income and multistate activity. Arkansas generally uses single-sales-factor apportionment. Act 719 changes services/intangibles to market sourcing and adds a $250,000 receipts economic-nexus threshold for nonresident corporations without physical presence for tax years beginning in 2026. Sales/use, employment, property, and other states' nexus obligations are separate. Compared yearly minimum addition: $150. Small active domestic stock C corporation operating in Arkansas, no Arkansas taxable profit, and Arkansas-attributed capital stock of $50,000 or less: the $150 franchise minimum applies. Tax only, excluding report and local/industry fees.
Separate $70 state benefit-report filing fee. Any shareholder can bring a benefit derivative claim; no 2% floor. Independent benefit director is optional. Arkansas expressly excludes all third-party liability from this ordinary director charter protection.
Primary-source findings with stated qualifications. Benefit provisions read in enacted Act 1388 (2013), with current SOS January 2025 benefit corporation articles confirming availability. Ordinary clause verified in official Act 958 (1987), 2007/2019 amendment texts and official legislative amendment indexes through the 2026 fiscal session. Selected statutory provisions; not a full case-law, charter or tax audit.
Any shareholder can enforce benefit duties, and unjustified noncompliance may shift plaintiff legal fees. Annual report discloses 5% holders, a privacy consideration.
$825 / year, compared filings + minimum taxesCalifornia keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Ordinary charter exculpation is director-only; California preserves recklessness and repeated inattention as well as misconduct exceptions.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 3 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
California: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: California offers Benefit corporation; also social purpose corporation.
California offers Benefit corporation; also social purpose corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
California: §204(a)(10) permits prospective monetary limitation in corporate/derivative director-duty actions. California expressly retains recklessness and abdication exposure and excludes officer acts. The benefit-act shield remains a separate provision. Benefit-specific rule: The benefit-purpose shield is expressly separate from ordinary charter exculpation; any-shareholder standing and fee shifting strengthen accountability.
Why this changes the score: California keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Ordinary charter exculpation is director-only; California preserves recklessness and repeated inattention as well as misconduct exceptions.
California has an identified director monetary-protection provision in the compared scope, which earns this credit. §204(a)(10) permits prospective monetary limitation in corporate/derivative director-duty actions. California expressly retains recklessness and abdication exposure and excludes officer acts. The benefit-act shield remains a separate provision.
California does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
California requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
California earns the benefit-specific credit for company. The benefit-purpose shield is expressly separate from ordinary charter exculpation; any-shareholder standing and fee shifting strengthen accountability.
California earns the benefit-specific credit for directors. The benefit-purpose shield is expressly separate from ordinary charter exculpation; any-shareholder standing and fee shifting strengthen accountability.
California earns the benefit-specific credit for officers. The benefit-purpose shield is expressly separate from ordinary charter exculpation; any-shareholder standing and fee shifting strengthen accountability.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
California: Annual shareholder and public report against third-party standard; report identifies holders of at least 5% of shares. No benefit-report state filing in current §§14630–14631. Assessment rule: Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Why this changes the score: California: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
California: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
California: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
California: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
California has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
California: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $800. Regular operating year after the first taxable year, domestic ordinary C corporation, no taxable profit and no special exemption. Includes $800 franchise minimum; excludes registry and variable taxes.
Why this changes the score: California has a compared recurring floor of $825 per year, including $800 in identified minimum tax/license charges.
California has a compared recurring floor of $825 per year, including $800 in identified minimum tax/license charges. Regular operating year after the first taxable year, domestic ordinary C corporation, no taxable profit and no special exemption. Includes $800 franchise minimum; excludes registry and variable taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
California: Becoming a benefit company: Two thirds of every class or series, including nonvoting shares. A two-thirds class vote protects status and specific-purpose changes, with statutory dissenters’ rights. Changing back: Two thirds of every class or series, including nonvoting shares.
Why this changes the score: California entry uses Two thirds of every class or series, including nonvoting shares.; exit uses Two thirds of every class or series, including nonvoting shares.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
California: becoming a benefit company requires Two thirds of every class or series, including nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
California: changing back requires Two thirds of every class or series, including nonvoting shares. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
California: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual shareholder and public report against third-party standard; report identifies holders of at least 5% of shares. No benefit-report state filing in current §§14630–14631. Enforcement: No percentage floor for a shareholder benefit enforcement proceeding. Court may award plaintiff expenses and attorney fees for noncompliance without justification.
Why this changes the score: California requires public access to the report. Any shareholder can enforce benefit duties, and unjustified noncompliance may shift plaintiff legal fees. Annual report discloses 5% holders, a privacy consideration. California social purpose corporation is a separate stock form; nonprofit public benefit corporation is not this for-profit form. §14631 requires a conspicuous benefit-corporation legend on share certificates, not state benefit-report filing.
California requires report access for people outside the company, so it earns public-access credit. Annual shareholder and public report against third-party standard; report identifies holders of at least 5% of shares. No benefit-report state filing in current §§14630–14631.
California: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
California: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
California makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download California’s full guide and sources ↓Compared variant: Benefit corporation. general-benefit model with any-shareholder enforcement and fee shifting
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual shareholder and public report against third-party standard; report identifies holders of at least 5% of shares. No benefit-report state filing in current §§14630–14631.
Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
No percentage floor for a shareholder benefit enforcement proceeding. Court may award plaintiff expenses and attorney fees for noncompliance without justification.
The benefit-purpose shield is expressly separate from ordinary charter exculpation; any-shareholder standing and fee shifting strengthen accountability.
§204(a)(10) permits prospective monetary limitation in corporate/derivative director-duty actions. California expressly retains recklessness and abdication exposure and excludes officer acts. The benefit-act shield remains a separate provision. Retained exceptions: Intentional misconduct or a knowing and culpable law violation; Acts believed contrary to the corporation/shareholders' best interests, or absence of good faith; Improper personal benefit; Reckless disregard where the director knew or should have known of a serious-injury risk; An unexcused pattern of inattention amounting to abdication; Interested transactions under §310 and specified unlawful distributions under §316; Acts before the provision takes effect; Officer conduct, even by someone also serving as a director and even if directors ratify it. Activation: An articles provision under Corporations Code §204(a)(10); §204(b) also permits these provisions in a close-corporation shareholders agreement.
Entry: Two thirds of every class or series, including nonvoting shares.. Exit: Two thirds of every class or series, including nonvoting shares.. A two-thirds class vote protects status and specific-purpose changes, with statutory dissenters’ rights.
Ordinary: $25 / annual. Annual stock-corporation Statement of Information; not the $20 biennial LLC/nonprofit fee. Benefit filing: $0 / none. No state benefit-report filing requirement in §§14630–14631. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Ordinary C corporations pay 8.84% on California taxable income, subject to the $800 franchise minimum. First-year income remains taxable at 8.84% even when the minimum is waived. Benefit corporations remain corporations; benefit status does not itself establish tax exemption. Corporations incorporated, registered or doing business in California generally owe at least $800 annually, including inactive or loss-making corporations. Newly incorporated or qualified corporations are exempt from the minimum for their first taxable year; the limited 15-day/no-business exception also applies. California-source income, registration and doing-business nexus can create obligations for corporations formed elsewhere. Multistate income is allocated/apportioned; an out-of-state charter does not avoid California operating tax. Compared yearly minimum addition: $800. Regular operating year after the first taxable year, domestic ordinary C corporation, no taxable profit and no special exemption. Includes $800 franchise minimum; excludes registry and variable taxes.
Any shareholder can enforce benefit duties, and unjustified noncompliance may shift plaintiff legal fees. Annual report discloses 5% holders, a privacy consideration. California social purpose corporation is a separate stock form; nonprofit public benefit corporation is not this for-profit form. §14631 requires a conspicuous benefit-corporation legend on share certificates, not state benefit-report filing. Ordinary charter exculpation is director-only; California preserves recklessness and repeated inattention as well as misconduct exceptions.
high. Selected statutory provisions; not a full case-law, charter or tax audit.
Optional legacy lock materially restricts future sale, exit and dissolution distributions. 5% direct-company and 10% parent standing differ from 2%/5% states.
$400 / year, compared filings + minimum taxesConnecticut keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Ordinary director damages cap retains at least one year’s compensation.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 3 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Connecticut: General public benefit required; specific charter benefits optional and cannot limit the general obligation.
Why this changes the score: Connecticut offers Benefit corporation.
Connecticut offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Connecticut: Charter may cap director damages no lower than compensation received in the year of violation. Excludes knowing culpable law violations, improper economic gain, conscious bad-faith disregard of serious-injury risk, sustained abdication/inattention, and unlawful distributions; no officer clause. Benefit-specific rule: Corporation cannot owe monetary damages for missing public-benefit creation. Directors/officers receive compliant-duty and mission-failure damages protection; beneficiary status alone creates no duty.
Why this changes the score: Connecticut keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Ordinary director damages cap retains at least one year’s compensation.
Connecticut has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter may cap director damages no lower than compensation received in the year of violation. Excludes knowing culpable law violations, improper economic gain, conscious bad-faith disregard of serious-injury risk, sustained abdication/inattention, and unlawful distributions; no officer clause.
Connecticut does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Connecticut requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Connecticut earns the benefit-specific credit for company. Corporation cannot owe monetary damages for missing public-benefit creation. Directors/officers receive compliant-duty and mission-failure damages protection; beneficiary status alone creates no duty.
Connecticut earns the benefit-specific credit for directors. Corporation cannot owe monetary damages for missing public-benefit creation. Directors/officers receive compliant-duty and mission-failure damages protection; beneficiary status alone creates no duty.
Connecticut earns the benefit-specific credit for officers. Corporation cannot owe monetary damages for missing public-benefit creation. Directors/officers receive compliant-duty and mission-failure damages protection; beneficiary status alone creates no duty.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Connecticut: Annual; each shareholder by earlier of 120 days or other annual report. All reports remain public online; latest free on request if no website. No state filing. Assessment rule: Third-party assessment standard required. No third-party audit or certification required; selecting/changing standard requires prescribed board/shareholder approval.
Why this changes the score: Connecticut: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Connecticut: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Connecticut: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Connecticut: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Connecticut has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Connecticut: Registry reporting: $150 per year on an annualized basis. Minimum tax/license used here: $250. Small active domestic C corporation, regular full year after the first, no taxable profit and sufficiently low capital that the capital-base calculation does not exceed $250. No combined group or special classification is assumed.
Why this changes the score: Connecticut has a compared recurring floor of $400 per year, including $250 in identified minimum tax/license charges.
Connecticut has a compared recurring floor of $400 per year, including $250 in identified minimum tax/license charges. Small active domestic C corporation, regular full year after the first, no taxable profit and sufficiently low capital that the capital-base calculation does not exceed $250. No combined group or special classification is assumed. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Connecticut: Becoming a benefit company: two-thirds of each class, including nonvoting. Default two-thirds of each class/series, including otherwise nonvoting shares. After 24 months, unanimous all-class approval can adopt a legacy lock that restricts exit/transactions and sends residual assets to charities or similarly locked benefit corporations. Changing back: two-thirds unless legacy lock
Why this changes the score: Connecticut entry uses two-thirds of each class, including nonvoting; exit uses two-thirds unless legacy lock. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Connecticut: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Default two-thirds of each class/series, including otherwise nonvoting shares. After 24 months, unanimous all-class approval can adopt a legacy lock that restricts exit/transactions and sends residual assets to charities or similarly locked benefit corporations.
Connecticut: changing back requires two-thirds unless legacy lock. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Default two-thirds of each class/series, including otherwise nonvoting shares. After 24 months, unanimous all-class approval can adopt a legacy lock that restricts exit/transactions and sends residual assets to charities or similarly locked benefit corporations.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Connecticut: Directors must consider stakeholder effects and mission. Charter can prioritize a specified benefit. Independent benefit director mandatory only for publicly traded corporations; optional for private corporations. Disclosure: Annual; each shareholder by earlier of 120 days or other annual report. All reports remain public online; latest free on request if no website. No state filing. Enforcement: Corporation; derivative holders collectively 5% of class/series at challenged act; 10% equity of parent with majority-owned subsidiary; charter/bylaw designees. Directors do not receive independent standing just by holding office.
Why this changes the score: Connecticut requires public access to the report. Optional legacy lock materially restricts future sale, exit and dissolution distributions.
Connecticut requires report access for people outside the company, so it earns public-access credit. Annual; each shareholder by earlier of 120 days or other annual report. All reports remain public online; latest free on request if no website. No state filing.
Connecticut: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Connecticut: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Connecticut makes a mission duty mandatory, so it earns this credit. Directors must consider stakeholder effects and mission. Charter can prioritize a specified benefit. Independent benefit director mandatory only for publicly traded corporations; optional for private corporations.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Connecticut’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / mandatory-stakeholder model
General public benefit required; specific charter benefits optional and cannot limit the general obligation.
Directors must consider stakeholder effects and mission. Charter can prioritize a specified benefit. Independent benefit director mandatory only for publicly traded corporations; optional for private corporations.
Annual; each shareholder by earlier of 120 days or other annual report. All reports remain public online; latest free on request if no website. No state filing.
Third-party assessment standard required. No third-party audit or certification required; selecting/changing standard requires prescribed board/shareholder approval.
Corporation; derivative holders collectively 5% of class/series at challenged act; 10% equity of parent with majority-owned subsidiary; charter/bylaw designees. Directors do not receive independent standing just by holding office.
Corporation cannot owe monetary damages for missing public-benefit creation. Directors/officers receive compliant-duty and mission-failure damages protection; beneficiary status alone creates no duty.
Charter may cap director damages no lower than compensation received in the year of violation. Excludes knowing culpable law violations, improper economic gain, conscious bad-faith disregard of serious-injury risk, sustained abdication/inattention, and unlawful distributions; no officer clause.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds unless legacy lock. Default two-thirds of each class/series, including otherwise nonvoting shares. After 24 months, unanimous all-class approval can adopt a legacy lock that restricts exit/transactions and sends residual assets to charities or similarly locked benefit corporations.
Ordinary: $150 / annual. Domestic stock-corporation annual report. Benefit filing: $0 / annual. No state benefit-report filing. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Corporation business tax uses a 7.5% net-income rate. A 10% surtax applies to companies with federal total income of at least $100 million and combined unitary filers; it does not apply to the $250 minimum. The surtax is extended through income years beginning in 2028. Liability is the larger of the income measure and the capital-base measure, with a $250 minimum. The statutory capital-base rate for an income year beginning in 2026 is 0.16%, capped at $1 million before applicable adjustments; the DRS overview still describes the 2025 rate of 0.21%. DRS requires returns from corporations carrying on business or having the right to do so in Connecticut. Income generally follows a Connecticut-sales fraction; capital uses an asset-based apportionment fraction, with special industry rules. An operating address in another formation state does not determine Connecticut liability. Compared yearly minimum addition: $250. Small active domestic C corporation, regular full year after the first, no taxable profit and sufficiently low capital that the capital-base calculation does not exceed $250. No combined group or special classification is assumed.
Optional legacy lock materially restricts future sale, exit and dissolution distributions. 5% direct-company and 10% parent standing differ from 2%/5% states. Ordinary director damages cap retains at least one year’s compensation.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Entity-specific tax nexus, exemptions and current capital-base computation not modeled. Selected statutory provisions; not a full case-law, charter or tax audit.
A small private company lacks the ordinary charter exculpation available to larger/listed companies. Independent benefit director required; any qualifying shareholder can enforce.
$35 / year, compared filings + minimum taxesSouth Carolina’s ordinary charter shield has public-company/size eligibility gates, so the new small private company receives no ordinary director credit. Benefit-specific rules remain separate.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 10 |
| Less paperwork | 8 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
South Carolina: General public benefit is required. A specific public benefit must be identified at formation under §33-38-200, as confirmed by SOS formation form F0009 item 6 and its FY2025 statutory explanation. Section 33-38-300(B) nevertheless uses optional wording for specific purposes. Include a specific mission when forming; the inconsistent purpose-section wording remains a real drafting distinction.
Why this changes the score: South Carolina offers Benefit corporation.
South Carolina offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
South Carolina: Ordinary charter director exculpation restricted to SEC-registered voting-share companies, ≥$25m assets, OR ≥500 shareholders. Exceptions include loyalty, bad faith, GROSS NEGLIGENCE, intentional misconduct/knowing violation, unlawful distributions, improper personal benefit. Small private startups do not qualify; no officer clause. Benefit-specific rule: Corporation mission-failure damages barred. Directors/officers protected for compliant-duty conduct and mission failure. Benefit-director immunity excludes improper personal benefit, wilful misconduct or knowing law violations.
Why this changes the score: South Carolina’s ordinary charter shield has public-company/size eligibility gates, so the new small private company receives no ordinary director credit. Benefit-specific rules remain separate.
South Carolina’s ordinary charter shield has public-company/size eligibility gates; this new small private company does not qualify, so this factor receives no credit. Ordinary charter director exculpation restricted to SEC-registered voting-share companies, ≥$25m assets, OR ≥500 shareholders. Exceptions include loyalty, bad faith, GROSS NEGLIGENCE, intentional misconduct/knowing violation, unlawful distributions, improper personal benefit. Small private startups do not qualify; no officer clause.
South Carolina does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
South Carolina requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
South Carolina earns the benefit-specific credit for company. Corporation mission-failure damages barred. Directors/officers protected for compliant-duty conduct and mission failure. Benefit-director immunity excludes improper personal benefit, wilful misconduct or knowing law violations.
South Carolina earns the benefit-specific credit for directors. Corporation mission-failure damages barred. Directors/officers protected for compliant-duty conduct and mission failure. Benefit-director immunity excludes improper personal benefit, wilful misconduct or knowing law violations.
South Carolina earns the benefit-specific credit for officers. Corporation mission-failure damages barred. Directors/officers protected for compliant-duty conduct and mission failure. Benefit-director immunity excludes improper personal benefit, wilful misconduct or knowing law violations.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
South Carolina: Annual to shareholders by earlier of 120 days or another annual shareholder report; all benefit reports public online, free latest copy on request if no website. SOS form F0018 supplies the state-filing route: attach latest shareholder benefit report, submit two copies and $10 to SOS Corporate Filings. Ordinary annual Schedule D goes to DOR with the corporate tax return. Assessment rule: Third-party assessment standard required; performance assessment need not be performed, audited or certified by third party.
Why this changes the score: South Carolina: Annual; Required outside framework; state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
South Carolina: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
South Carolina: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
South Carolina: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
South Carolina requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required for all, including private corporations.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
South Carolina: Registry reporting: $10 per year on an annualized basis. Minimum tax/license used here: $25. Small active domestic C corporation in a regular full year after formation, no taxable profit and capital/paid-in-surplus license computation no greater than $25. Do not add the one-time initial CL-1 fee again; annual benefit-report fees are separate.
Why this changes the score: South Carolina has a compared recurring floor of $35 per year, including $25 in identified minimum tax/license charges.
South Carolina has a compared recurring floor of $35 per year, including $25 in identified minimum tax/license charges. Small active domestic C corporation in a regular full year after formation, no taxable profit and capital/paid-in-surplus license computation no greater than $25. Do not add the one-time initial CL-1 fee again; annual benefit-report fees are separate. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
South Carolina: Becoming a benefit company: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and specified asset transactions. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: South Carolina entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
South Carolina: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
South Carolina: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
South Carolina: Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required for all, including private corporations. Disclosure: Annual to shareholders by earlier of 120 days or another annual shareholder report; all benefit reports public online, free latest copy on request if no website. SOS form F0018 supplies the state-filing route: attach latest shareholder benefit report, submit two copies and $10 to SOS Corporate Filings. Ordinary annual Schedule D goes to DOR with the corporate tax return. Enforcement: Corporation; any shareholder, director, 5% parent equity, charter/bylaw designees.
Why this changes the score: South Carolina requires public access to the report. Independent benefit director required; any qualifying shareholder can enforce. Formation requires a specific public mission in current SOS practice despite optional wording in the purpose section; annual benefit filing is $10 in addition to the DOR license minimum.
South Carolina requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or another annual shareholder report; all benefit reports public online, free latest copy on request if no website. SOS form F0018 supplies the state-filing route: attach latest shareholder benefit report, submit two copies and $10 to SOS Corporate Filings. Ordinary annual Schedule D goes to DOR with the corporate tax return.
South Carolina: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
South Carolina: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
South Carolina makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required for all, including private corporations.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download South Carolina’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / independent-benefit-director model
General public benefit is required. A specific public benefit must be identified at formation under §33-38-200, as confirmed by SOS formation form F0009 item 6 and its FY2025 statutory explanation. Section 33-38-300(B) nevertheless uses optional wording for specific purposes. Include a specific mission when forming; the inconsistent purpose-section wording remains a real drafting distinction.
Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required for all, including private corporations.
Annual to shareholders by earlier of 120 days or another annual shareholder report; all benefit reports public online, free latest copy on request if no website. SOS form F0018 supplies the state-filing route: attach latest shareholder benefit report, submit two copies and $10 to SOS Corporate Filings. Ordinary annual Schedule D goes to DOR with the corporate tax return.
Third-party assessment standard required; performance assessment need not be performed, audited or certified by third party.
Corporation; any shareholder, director, 5% parent equity, charter/bylaw designees.
Corporation mission-failure damages barred. Directors/officers protected for compliant-duty conduct and mission failure. Benefit-director immunity excludes improper personal benefit, wilful misconduct or knowing law violations.
Ordinary charter director exculpation restricted to SEC-registered voting-share companies, ≥$25m assets, OR ≥500 shareholders. Exceptions include loyalty, bad faith, GROSS NEGLIGENCE, intentional misconduct/knowing violation, unlawful distributions, improper personal benefit. Small private startups do not qualify; no officer clause.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and specified asset transactions.
Ordinary: $0 / annual. Ordinary annual report is Schedule D inside the DOR SC1120/SC1120S corporate tax return; no separate ordinary SOS annual-report filing fee is added here. The DOR annual corporate license fee (minimum $25) is counted separately below. Dormant corporations still file the return and Schedule D. Benefit filing: $10 / annual. Current SOS form F0018 requires the most recent benefit report delivered to shareholders, two copies of form and attachments, a self-addressed stamped return envelope, and a $10 check payable to Secretary of State. Mail to Corporate Filings, 1205 Pendleton Street, Suite 525, Columbia SC 29201. Separate from DOR Schedule D and corporate license fee. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
South Carolina C-corporation income tax is 5% of South Carolina taxable income, beginning with federal taxable income, state modifications and applicable allocation/apportionment. Special banks, savings institutions and other classifications have different rates. Ordinary corporations owe an annual license fee of $15 plus 0.1% of capital and paid-in surplus, with a $25 minimum. The license fee is paid with the income return and covers the following year. A separate $25 initial CL-1 license fee is due on incorporation/qualification; dormant corporations still owe the annual minimum. SCDOR requires filing from charter/authority through recorded dissolution/withdrawal, even without income. Multistate corporations calculate their own apportionment for both taxable income and the license fee; short-period and final-return rules change timing rather than establish a general $0 annual tax. Compared yearly minimum addition: $25. Small active domestic C corporation in a regular full year after formation, no taxable profit and capital/paid-in-surplus license computation no greater than $25. Do not add the one-time initial CL-1 fee again; annual benefit-report fees are separate.
A small private company lacks the ordinary charter exculpation available to larger/listed companies. Independent benefit director required; any qualifying shareholder can enforce. Formation requires a specific public mission in current SOS practice despite optional wording in the purpose section; annual benefit filing is $10 in addition to the DOR license minimum.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Formation §33-38-200 and SOS practice require a specific mission, while purpose §33-38-300(B) uses optional language; this wording conflict should be preserved. Size thresholds materially qualify director-exculpation eligibility; it is unavailable to an ordinary small startup. Selected statutory provisions; not a full case-law, charter or tax audit.
Purpose consideration is permissive unless articles strengthen it. Annual public reporting without a mandatory assessment standard.
$70 / year, compared filings + minimum taxesWashington keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
| Area | Score |
|---|---|
| Benefit company option | 12 |
| Personal protections | 14 |
| Less paperwork | 20 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 14 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Washington: Related social purpose corporation: general positive effects on selected stakeholder categories; specific social purposes optional.
Why this changes the score: Washington offers Social purpose corporation.
Washington offers Social purpose corporation. Washington gets partial form credit because its social-purpose corporation uses a different mission model.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Washington: Director-only opt-in charter monetary limitation; exceptions include intentional misconduct, knowing law violation, unlawful distributions and improper personal benefit. Benefit-specific rule: Director and officer purpose-duty liability bars depend on compliance with good faith, care and best-interest standards. Not a bar to unrelated duties.
Why this changes the score: Washington keeps this ordinary shield limited to directors; the charter must elect the ordinary protection.
Washington has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in charter monetary limitation; exceptions include intentional misconduct, knowing law violation, unlawful distributions and improper personal benefit.
Washington does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Washington requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Washington has no separately credited benefit-specific monetary shield for company. Director and officer purpose-duty liability bars depend on compliance with good faith, care and best-interest standards. Not a bar to unrelated duties.
Washington earns the benefit-specific credit for directors. Director and officer purpose-duty liability bars depend on compliance with good faith, care and best-interest standards. Not a bar to unrelated duties.
Washington earns the benefit-specific credit for officers. Director and officer purpose-duty liability bars depend on compliance with good faith, care and best-interest standards. Not a bar to unrelated duties.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Washington: Annual public website report within four months of year end. After two consecutive missed fiscal years, a shareholder may seek a summary reporting order. Assessment rule: No mandatory third-party assessment standard identified; companies can elect one.
Why this changes the score: Washington: Annual; Optional / no mandate outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Washington: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Washington: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit. No mandatory third-party assessment standard identified; companies can elect one.
Washington: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Washington has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Washington: Registry reporting: $70 per year on an annualized basis. Minimum tax/license used here: $0. Fixed yearly baseline only, ordinary domestic corporation. Variable B&O is excluded; the small-business credit may eliminate it at sufficiently low activity, depending on classification and reporting period. State/city license endorsements, registry charges and sales/payroll taxes are excluded.
Why this changes the score: Washington has a compared recurring floor of $70 per year, including $0 in identified minimum tax/license charges.
Washington has a compared recurring floor of $70 per year, including $0 in identified minimum tax/license charges. Fixed yearly baseline only, ordinary domestic corporation. Variable B&O is excluded; the small-business credit may eliminate it at sufficiently low activity, depending on classification and reporting period. State/city license endorsements, registry charges and sales/payroll taxes are excluded. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Washington: Becoming a benefit company: At least two-thirds of all votes entitled to be cast AND two-thirds of each outstanding class or series; additional voting groups and higher requirements apply. Existing domestic corporations elect social purpose status through a board-approved plan that includes an articles amendment. RCW 23B.25.130 specifies the election votes; RCW 23B.25.120 preserves applicable fair-value dissent rights. This is a related social purpose form. Changing back: 2/3 each class
Why this changes the score: Washington entry uses At least two-thirds of all votes entitled to be cast AND two-thirds of each outstanding class or series; additional voting groups and higher requirements apply.; exit uses 2/3 each class. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Washington: becoming a benefit company requires At least two-thirds of all votes entitled to be cast AND two-thirds of each outstanding class or series; additional voting groups and higher requirements apply. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Washington: changing back requires 2/3 each class. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Washington: Directors may consider and give weight to social purposes unless articles require more. Promotion of purpose is deemed in the corporation’s best interests. Disclosure: Annual public website report within four months of year end. After two consecutive missed fiscal years, a shareholder may seek a summary reporting order. Enforcement: Only shareholders bring purpose-duty actions in the corporation’s right. Ordinary derivative procedure and contemporaneous ownership apply; no special percentage threshold.
Why this changes the score: Washington requires public access to the report. Annual public reporting without a mandatory assessment standard. Any qualifying shareholder can use derivative enforcement; no model 2% or 5% gate.
Washington requires report access for people outside the company, so it earns public-access credit. Annual public website report within four months of year end. After two consecutive missed fiscal years, a shareholder may seek a summary reporting order.
Washington: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Washington: Optional / no mandate. An optional framework earns more flexibility credit and no mandatory-framework transparency credit. No mandatory third-party assessment standard identified; companies can elect one.
Washington has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. Directors may consider and give weight to social purposes unless articles require more. Promotion of purpose is deemed in the corporation’s best interests.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Washington’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. social-purpose permission
Related social purpose corporation: general positive effects on selected stakeholder categories; specific social purposes optional.
Directors may consider and give weight to social purposes unless articles require more. Promotion of purpose is deemed in the corporation’s best interests.
Annual public website report within four months of year end. After two consecutive missed fiscal years, a shareholder may seek a summary reporting order.
No mandatory third-party assessment standard identified; companies can elect one.
Only shareholders bring purpose-duty actions in the corporation’s right. Ordinary derivative procedure and contemporaneous ownership apply; no special percentage threshold.
Director and officer purpose-duty liability bars depend on compliance with good faith, care and best-interest standards. Not a bar to unrelated duties.
Director-only opt-in charter monetary limitation; exceptions include intentional misconduct, knowing law violation, unlawful distributions and improper personal benefit.
Entry: 2/3 each class. Exit: 2/3 each class. Two thirds of each class and overall entitled shares for material purpose change or termination; higher articles requirements may apply.
Ordinary: $70 / annual. Current standard annual report fee; older $60 materials are stale. Benefit filing: $0 / none. Website report, no dedicated state filing identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Washington has no general corporate net-income tax, but B&O taxes gross business receipts without expense deductions. Current major rates include 0.471% retailing, 0.484% manufacturing/wholesaling and 1.5% services below $1 million prior-year income, 1.75% from $1 million to under $5 million, and 2.1% at $5 million or more. Classification and other taxes matter. B&O has no flat general corporate annual minimum; qualifying small businesses receive a credit against calculated tax. Annual registry fees, local B&O and business-license endorsements are separate. Zero taxable profit does not imply zero B&O. Washington nexus and receipts sourcing/apportionment govern B&O. Services, digital products and retail activities can fall under different classifications; an out-of-state charter does not remove Washington tax on business activity. Compared yearly minimum addition: $0. Fixed yearly baseline only, ordinary domestic corporation. Variable B&O is excluded; the small-business credit may eliminate it at sufficiently low activity, depending on classification and reporting period. State/city license endorsements, registry charges and sales/payroll taxes are excluded.
Purpose consideration is permissive unless articles strengthen it. Annual public reporting without a mandatory assessment standard. Any qualifying shareholder can use derivative enforcement; no model 2% or 5% gate.
Current code and agency fee schedule. Actual Washington B&O and other operating taxes are outside this model. Selected statutory provisions; not a full case-law, charter or tax audit.
Both directors and officers can receive broad ordinary charter protection, with deliberate-dishonesty and improper-benefit exceptions. Ordinary amendment vote can be reduced to majority; no automatic two-thirds vote for every nonvoting class.
$300 / year, compared filings + minimum taxesMaryland adds ordinary officer coverage; the charter must elect the ordinary protection. Both directors and officers can receive broad ordinary charter protection, with deliberate-dishonesty and improper-benefit exceptions. No designated benefit director or bespoke benefit-enforcement threshold.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 12 |
| Less paperwork | 15 |
| Yearly state costs and taxes | 6 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Maryland: General public benefit required; identified specific charter benefits optional.
Why this changes the score: Maryland offers Benefit corporation.
Maryland offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Maryland: Charter may exculpate both directors and officers against corporation/shareholder damages except actual improper benefit/profit and active deliberate dishonesty established by final judgment and material to claim. Special bank/financial-institution exceptions apply; other capacities unaffected. Benefit-specific rule: Reasonable compliance with director duties invokes statutory immunity; no explicit blanket corporation/officer mission-failure monetary bar in benefit subtitle.
Why this changes the score: Maryland adds ordinary officer coverage; the charter must elect the ordinary protection. Both directors and officers can receive broad ordinary charter protection, with deliberate-dishonesty and improper-benefit exceptions. No designated benefit director or bespoke benefit-enforcement threshold.
Maryland has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter may exculpate both directors and officers against corporation/shareholder damages except actual improper benefit/profit and active deliberate dishonesty established by final judgment and material to claim. Special bank/financial-institution exceptions apply; other capacities unaffected.
Maryland extends ordinary protection to officers, which earns officer-scope credit. Charter may exculpate both directors and officers against corporation/shareholder damages except actual improper benefit/profit and active deliberate dishonesty established by final judgment and material to claim. Special bank/financial-institution exceptions apply; other capacities unaffected.
Maryland requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Maryland has no separately credited benefit-specific monetary shield for company. Reasonable compliance with director duties invokes statutory immunity; no explicit blanket corporation/officer mission-failure monetary bar in benefit subtitle.
Maryland has no separately credited benefit-specific monetary shield for directors. Reasonable compliance with director duties invokes statutory immunity; no explicit blanket corporation/officer mission-failure monetary bar in benefit subtitle.
Maryland has no separately credited benefit-specific monetary shield for officers. Reasonable compliance with director duties invokes statutory immunity; no explicit blanket corporation/officer mission-failure monetary bar in benefit subtitle.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Maryland: Annual to each shareholder within 120 days. Latest report public online or free on demand without a website. No state benefit-report filing in subtitle. Assessment rule: Annual social/environmental assessment against third-party standard required. Subtitle has no mandatory third-party audit or certification.
Why this changes the score: Maryland: Annual; Required outside framework; no separate state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Maryland: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Maryland: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Maryland: No separate state benefit-report filing. No separate state submission earns the no-extra-filing credit. Preparing, sharing or publishing the report may still be required.
Maryland has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Maryland: Registry reporting: $300 per year on an annualized basis. Minimum tax/license used here: $0. Small active domestic C corporation in a regular year with no Maryland taxable income after state modifications and apportionment. Form 500 remains required. SDAT annual-report and personal-property costs are excluded and must be evaluated separately.
Why this changes the score: Maryland has a compared recurring floor of $300 per year, including $0 in identified minimum tax/license charges.
Maryland has a compared recurring floor of $300 per year, including $0 in identified minimum tax/license charges. Small active domestic C corporation in a regular year with no Maryland taxable income after state modifications and apportionment. Form 500 remains required. SDAT annual-report and personal-property costs are excluded and must be evaluated separately. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Maryland: Becoming a benefit company: two-thirds default; charter can reduce to majority entitled votes. Entry and exit use ordinary charter-amendment vote: two-thirds of entitled votes by default; charter can raise or lower to at least majority of entitled votes. No benefit-specific all-nonvoting-class override or legacy lock. Changing back: same ordinary charter-amendment rule
Why this changes the score: Maryland entry uses two-thirds default; charter can reduce to majority entitled votes; exit uses same ordinary charter-amendment rule. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Maryland: becoming a benefit company requires two-thirds default; charter can reduce to majority entitled votes. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Entry and exit use ordinary charter-amendment vote: two-thirds of entitled votes by default; charter can raise or lower to at least majority of entitled votes. No benefit-specific all-nonvoting-class override or legacy lock.
Maryland: changing back requires same ordinary charter-amendment rule. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain. Entry and exit use ordinary charter-amendment vote: two-thirds of entitled votes by default; charter can raise or lower to at least majority of entitled votes. No benefit-specific all-nonvoting-class override or legacy lock.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Maryland: Directors must consider shareholders, employees/suppliers, customers, community/society and environment; beneficiaries gain no director duty merely from that status. No separate benefit director mandated. Disclosure: Annual to each shareholder within 120 days. Latest report public online or free on demand without a website. No state benefit-report filing in subtitle. Enforcement: The benefit subtitle creates no special ownership-percentage threshold or enforcement proceeding. A qualifying shareholder uses ordinary derivative remedies: plead entitlement at the challenged conduct and filing (or succession by law), adequate representation, and demand or a particularized excuse. Demand is excused only for irreparable harm from demand/delay or a board majority personally disabled from considering it under the statutory conduct standard. Potential director liability alone does not excuse demand.
Why this changes the score: Maryland requires public access to the report. No designated benefit director or bespoke benefit-enforcement threshold. Demand is ordinarily required before a shareholder derivative suit; futility is narrowly limited and requires particularized facts.
Maryland requires report access for people outside the company, so it earns public-access credit. Annual to each shareholder within 120 days. Latest report public online or free on demand without a website. No state benefit-report filing in subtitle.
Maryland: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Maryland: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Maryland makes a mission duty mandatory, so it earns this credit. Directors must consider shareholders, employees/suppliers, customers, community/society and environment; beneficiaries gain no director duty merely from that status. No separate benefit director mandated.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Maryland’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / ordinary-corporate-enforcement model
General public benefit required; identified specific charter benefits optional.
Directors must consider shareholders, employees/suppliers, customers, community/society and environment; beneficiaries gain no director duty merely from that status. No separate benefit director mandated.
Annual to each shareholder within 120 days. Latest report public online or free on demand without a website. No state benefit-report filing in subtitle.
Annual social/environmental assessment against third-party standard required. Subtitle has no mandatory third-party audit or certification.
The benefit subtitle creates no special ownership-percentage threshold or enforcement proceeding. A qualifying shareholder uses ordinary derivative remedies: plead entitlement at the challenged conduct and filing (or succession by law), adequate representation, and demand or a particularized excuse. Demand is excused only for irreparable harm from demand/delay or a board majority personally disabled from considering it under the statutory conduct standard. Potential director liability alone does not excuse demand.
Reasonable compliance with director duties invokes statutory immunity; no explicit blanket corporation/officer mission-failure monetary bar in benefit subtitle.
Charter may exculpate both directors and officers against corporation/shareholder damages except actual improper benefit/profit and active deliberate dishonesty established by final judgment and material to claim. Special bank/financial-institution exceptions apply; other capacities unaffected.
Entry: two-thirds default; charter can reduce to majority entitled votes. Exit: same ordinary charter-amendment rule. Entry and exit use ordinary charter-amendment vote: two-thirds of entitled votes by default; charter can raise or lower to at least majority of entitled votes. No benefit-specific all-nonvoting-class override or legacy lock.
Ordinary: $300 / annual. Domestic/foreign stock corporation Form 1; MarylandSaves-approved waiver can eliminate this fee; farm/nonstock/interstate exceptions differ. Benefit filing: $0 / annual. No state benefit-report filing in subtitle. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Maryland corporation income tax is 8.25% of Maryland taxable income, beginning with federal taxable income and state modifications. Ordinary multistate corporations generally use single-sales-factor apportionment for tax years after 2021; specified industries and approved alternative methods differ. The ordinary corporate-income formula has no fixed-dollar income-tax minimum. The separate SDAT annual-report charge, potential MarylandSaves waiver and taxable business personal property remain outside that income-tax calculation. Comptroller guidance requires every Maryland corporation to file even when inactive or without taxable income, and other subject corporations with Maryland-source income or loss also file. Administrative Release 43 supplies current apportionment rules; the general overview's older three-factor wording should not override those rules. Compared yearly minimum addition: $0. Small active domestic C corporation in a regular year with no Maryland taxable income after state modifications and apportionment. Form 500 remains required. SDAT annual-report and personal-property costs are excluded and must be evaluated separately.
Both directors and officers can receive broad ordinary charter protection, with deliberate-dishonesty and improper-benefit exceptions. Ordinary amendment vote can be reduced to majority; no automatic two-thirds vote for every nonvoting class. No designated benefit director or bespoke benefit-enforcement threshold. Demand is ordinarily required before a shareholder derivative suit; futility is narrowly limited and requires particularized facts.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Ordinary enforcement is described using Rule 15-1601, effective October 1, 2025, and the Supreme Court’s July 14, 2026 Nathanson clarification. These procedural rules do not themselves establish that a particular benefit-related allegation states a valid corporate claim. Selected statutory provisions; not a full case-law, charter or tax audit.
Independent benefit director required for private as well as public corporations. Any qualifying shareholder may enforce, but parent-equity standing is 10%.
$645 / year, compared filings + minimum taxesNew Jersey adds ordinary officer coverage; the charter must elect the ordinary protection. Independent benefit director required for private as well as public corporations. Ordinary officer charter protection is available; separate $70 annual benefit filing and status-forfeiture rule.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 20 |
| Less paperwork | 8 |
| Yearly state costs and taxes | 3 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
New Jersey: General public benefit required; specific charter benefits optional.
Why this changes the score: New Jersey offers Benefit corporation.
New Jersey offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
New Jersey: Charter may limit/eliminate director and officer damages to corporation/shareholders. Excludes duty-of-loyalty breach, lack of good faith/knowing law violations and improper personal benefit; loyalty conflict defined by known/believed adverse interests and material conflict. Benefit-specific rule: Directors/officers not personally liable for mission-failure damages. No explicit blanket corporation damages bar in enforcement section. Benefit-director immunity excludes self-dealing, wilful misconduct and knowing violation.
Why this changes the score: New Jersey adds ordinary officer coverage; the charter must elect the ordinary protection. Independent benefit director required for private as well as public corporations. Ordinary officer charter protection is available; separate $70 annual benefit filing and status-forfeiture rule.
New Jersey has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter may limit/eliminate director and officer damages to corporation/shareholders. Excludes duty-of-loyalty breach, lack of good faith/knowing law violations and improper personal benefit; loyalty conflict defined by known/believed adverse interests and material conflict.
New Jersey extends ordinary protection to officers, which earns officer-scope credit. Charter may limit/eliminate director and officer damages to corporation/shareholders. Excludes duty-of-loyalty breach, lack of good faith/knowing law violations and improper personal benefit; loyalty conflict defined by known/believed adverse interests and material conflict.
New Jersey requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
New Jersey has no separately credited benefit-specific monetary shield for company. Directors/officers not personally liable for mission-failure damages. No explicit blanket corporation damages bar in enforcement section. Benefit-director immunity excludes self-dealing, wilful misconduct and knowing violation.
New Jersey earns the benefit-specific credit for directors. Directors/officers not personally liable for mission-failure damages. No explicit blanket corporation damages bar in enforcement section. Benefit-director immunity excludes self-dealing, wilful misconduct and knowing violation.
New Jersey earns the benefit-specific credit for officers. Directors/officers not personally liable for mission-failure damages. No explicit blanket corporation damages bar in enforcement section. Benefit-director immunity excludes self-dealing, wilful misconduct and knowing violation.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
New Jersey: Annual to shareholders by earlier of 120 days or other annual report. Latest report public online if website; also state Treasury filing, $70. After two years missing state reports, benefit status may be forfeited and reinstated on filing. Assessment rule: Third-party standard assessment required. No mandatory external audit or certification expressed in Chapter 18.
Why this changes the score: New Jersey: Annual; Required outside framework; state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
New Jersey: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
New Jersey: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New Jersey: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
New Jersey requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Mandatory stakeholder consideration; charter can prioritize a specific benefit. Independent benefit director required for all, including private corporations (boardless replacement permitted).
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
New Jersey: Registry reporting: $145 per year on an annualized basis. Minimum tax/license used here: $500. Small active domestic separate C corporation in a regular year, New Jersey gross receipts under $100,000, no taxable profit and no affiliated/controlled group with $5 million payroll. The additional installment on a low-tax return is a prepayment against the following period, not a second annual tax.
Why this changes the score: New Jersey has a compared recurring floor of $645 per year, including $500 in identified minimum tax/license charges.
New Jersey has a compared recurring floor of $645 per year, including $500 in identified minimum tax/license charges. Small active domestic separate C corporation in a regular year, New Jersey gross receipts under $100,000, no taxable profit and no affiliated/controlled group with $5 million payroll. The additional installment on a low-tax return is a prepayment against the following period, not a second annual tax. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
New Jersey: Becoming a benefit company: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and covered transactions. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: New Jersey entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
New Jersey: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
New Jersey: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
New Jersey: Mandatory stakeholder consideration; charter can prioritize a specific benefit. Independent benefit director required for all, including private corporations (boardless replacement permitted). Disclosure: Annual to shareholders by earlier of 120 days or other annual report. Latest report public online if website; also state Treasury filing, $70. After two years missing state reports, benefit status may be forfeited and reinstated on filing. Enforcement: Corporation; any shareholder, director, 10% equity of parent entity, charter/bylaw designees.
Why this changes the score: New Jersey requires public access to the report. Independent benefit director required for private as well as public corporations. Any qualifying shareholder may enforce, but parent-equity standing is 10%.
New Jersey requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report. Latest report public online if website; also state Treasury filing, $70. After two years missing state reports, benefit status may be forfeited and reinstated on filing.
New Jersey: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
New Jersey: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New Jersey makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter can prioritize a specific benefit. Independent benefit director required for all, including private corporations (boardless replacement permitted).
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download New Jersey’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / independent-benefit-director model
General public benefit required; specific charter benefits optional.
Mandatory stakeholder consideration; charter can prioritize a specific benefit. Independent benefit director required for all, including private corporations (boardless replacement permitted).
Annual to shareholders by earlier of 120 days or other annual report. Latest report public online if website; also state Treasury filing, $70. After two years missing state reports, benefit status may be forfeited and reinstated on filing.
Third-party standard assessment required. No mandatory external audit or certification expressed in Chapter 18.
Corporation; any shareholder, director, 10% equity of parent entity, charter/bylaw designees.
Directors/officers not personally liable for mission-failure damages. No explicit blanket corporation damages bar in enforcement section. Benefit-director immunity excludes self-dealing, wilful misconduct and knowing violation.
Charter may limit/eliminate director and officer damages to corporation/shareholders. Excludes duty-of-loyalty breach, lack of good faith/knowing law violations and improper personal benefit; loyalty conflict defined by known/believed adverse interests and material conflict.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and covered transactions.
Ordinary: $75 / annual. Ordinary for-profit corporate annual report. Benefit filing: $70 / annual. Statutory separate $70 annual benefit-report charge under §14A:18-11(d)(1), filed with Treasury when delivered to shareholders. The current DORES annual-report portal supports “NJ Benefit Domestic Profit Corporation (BDP)” and separately publishes an ordinary $75 annual corporate-report charge. The public landing/fee pages do not display the benefit-upload payment screen; therefore this $70 is statutory, not a tested checkout quote. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
For ordinary separate C-corporation filers, Corporation Business Tax is 6.5% when the applicable taxable-income base is $50,000 or less, 7.5% above $50,000 through $100,000, and 9% above $100,000. Each selected rate applies to the full base. A separate 2.5% Corporate Transit Fee applies when taxable net income exceeds $10 million for privilege periods beginning in 2024–2028; exemptions and group rules differ. The annual C-corporation minimum is $500 with New Jersey gross receipts below $100,000, then $750/$1,000/$1,500/$2,000 at higher tiers. An affiliated/controlled group's payroll of at least $5 million can require $2,000 per member. Inactive corporations still pay the minimum; the minimum cannot be prorated. Annual registry reporting is additional. The current CBT-100 instructions cover domestic and qualified foreign corporations and other nexus connections. Bright-line receipts nexus can arise above $100,000 New Jersey receipts or at least 200 customer transactions; taxpayers claiming P.L. 86-272 immunity still remit the minimum. Combined reporting and market sourcing can change the calculation. Compared yearly minimum addition: $500. Small active domestic separate C corporation in a regular year, New Jersey gross receipts under $100,000, no taxable profit and no affiliated/controlled group with $5 million payroll. The additional installment on a low-tax return is a prepayment against the following period, not a second annual tax.
Independent benefit director required for private as well as public corporations. Any qualifying shareholder may enforce, but parent-equity standing is 10%. Ordinary officer charter protection is available; separate $70 annual benefit filing and status-forfeiture rule.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Full benefit text read in official enactment; current official 2026 amendment index still lists Chapter 18 as 2011 c.30 with no amendments, but dynamic consolidated chapter pages could not be retrieved in full. The public DORES portal supports benefit corporations; its entity-specific benefit-report payment/upload screen cannot be inspected without an actual entity lookup. The $70 amount is expressly statutory; checkout processing charges are excluded. Selected statutory provisions; not a full case-law, charter or tax audit.
Combined state-report fee prevents double counting ordinary plus benefit filing. Charter can override default benefit-duty damages protection.
$460 / year, compared filings + minimum taxesRhode Island keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Charter can override default benefit-duty damages protection. Private companies need no separate independent benefit director.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 3 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Rhode Island: General benefit required; specific charter benefits optional.
Why this changes the score: Rhode Island offers Benefit corporation.
Rhode Island offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Rhode Island: Charter director damages exculpation excludes loyalty, bad faith, intentional misconduct/knowing violation, unlawful distributions and improper personal benefit (subject to approved-conflict exception). No officer clause. Benefit-specific rule: Corporation mission-failure damages barred. Directors/officers get compliant-duty and mission-failure monetary protection unless charter overrides.
Why this changes the score: Rhode Island keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Charter can override default benefit-duty damages protection. Private companies need no separate independent benefit director.
Rhode Island has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter director damages exculpation excludes loyalty, bad faith, intentional misconduct/knowing violation, unlawful distributions and improper personal benefit (subject to approved-conflict exception). No officer clause.
Rhode Island does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Rhode Island requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Rhode Island earns the benefit-specific credit for company. Corporation mission-failure damages barred. Directors/officers get compliant-duty and mission-failure monetary protection unless charter overrides.
Rhode Island earns the benefit-specific credit for directors. Corporation mission-failure damages barred. Directors/officers get compliant-duty and mission-failure monetary protection unless charter overrides.
Rhode Island earns the benefit-specific credit for officers. Corporation mission-failure damages barred. Directors/officers get compliant-duty and mission-failure monetary protection unless charter overrides.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Rhode Island: Annual to shareholders within 120 days; first report year follows formation/qualification calendar year. All reports online; free latest on request if no website. State report combines corporate and benefit reporting with $60 combined fee. Assessment rule: Third-party assessment standard required; external audit/certification not required.
Why this changes the score: Rhode Island: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Rhode Island: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Rhode Island: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Rhode Island: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Rhode Island has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Rhode Island: Registry reporting: $60 per year on an annualized basis. Minimum tax/license used here: $400. Small active ordinary domestic C corporation in a regular full year with no taxable profit and no special exemption. The separate annual registry report is additional.
Why this changes the score: Rhode Island has a compared recurring floor of $460 per year, including $400 in identified minimum tax/license charges.
Rhode Island has a compared recurring floor of $460 per year, including $400 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular full year with no taxable profit and no special exemption. The separate annual registry report is additional. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Rhode Island: Becoming a benefit company: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and covered transactions. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: Rhode Island entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Rhode Island: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Rhode Island: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Rhode Island: Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required only if publicly traded, optional otherwise. Disclosure: Annual to shareholders within 120 days; first report year follows formation/qualification calendar year. All reports online; free latest on request if no website. State report combines corporate and benefit reporting with $60 combined fee. Enforcement: Corporation; collective 2% of class/series at challenged act, director, 5% parent equity, charter/bylaw designees.
Why this changes the score: Rhode Island requires public access to the report. Combined state-report fee prevents double counting ordinary plus benefit filing.
Rhode Island requires report access for people outside the company, so it earns public-access credit. Annual to shareholders within 120 days; first report year follows formation/qualification calendar year. All reports online; free latest on request if no website. State report combines corporate and benefit reporting with $60 combined fee.
Rhode Island: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Rhode Island: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Rhode Island makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required only if publicly traded, optional otherwise.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Rhode Island’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / mandatory-stakeholder model
General benefit required; specific charter benefits optional.
Mandatory stakeholder consideration; charter may prioritize mission. Independent benefit director required only if publicly traded, optional otherwise.
Annual to shareholders within 120 days; first report year follows formation/qualification calendar year. All reports online; free latest on request if no website. State report combines corporate and benefit reporting with $60 combined fee.
Third-party assessment standard required; external audit/certification not required.
Corporation; collective 2% of class/series at challenged act, director, 5% parent equity, charter/bylaw designees.
Corporation mission-failure damages barred. Directors/officers get compliant-duty and mission-failure monetary protection unless charter overrides.
Charter director damages exculpation excludes loyalty, bad faith, intentional misconduct/knowing violation, unlawful distributions and improper personal benefit (subject to approved-conflict exception). No officer clause.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Two-thirds of every class/series including nonvoting for entry/exit and covered transactions.
Ordinary: $60 / annual. For benefit corporation, $60 is the combined corporate/benefit report fee; do not add a second $60. Benefit filing: $0 / annual. Included in $60 combined filing, not an additional fee. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Rhode Island ordinary C-corporation tax is 7% of state-apportioned net income or $400, whichever is greater. Federal taxable income is modified for state rules; single-sales-factor market sourcing and combined reporting apply to C corporations. The corporate minimum is $400 annually. The Secretary of State says registered for-profit corporations, LLCs and limited partnerships must pay at least that minimum; S corporations and many pass-through entities also have minimum/annual-charge obligations under their own rules. Registry reports remain separate. The tax agency applies single-sales-factor market sourcing to C corporations and uses combined reporting with the Finnegan method. Foreign corporations' Rhode Island activity can create tax obligations; state formation alone does not locate all business income in one jurisdiction. Compared yearly minimum addition: $400. Small active ordinary domestic C corporation in a regular full year with no taxable profit and no special exemption. The separate annual registry report is additional.
Combined state-report fee prevents double counting ordinary plus benefit filing. Charter can override default benefit-duty damages protection. Private companies need no separate independent benefit director.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Entity-specific tax nexus/exemptions not modeled. Selected statutory provisions; not a full case-law, charter or tax audit.
Articles can increase derivative benefit enforcement ownership requirements. 2025 ordinary exculpation can be adopted through approved bylaws/resolution.
See qualified cost rangeUtah keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. 2025 ordinary exculpation can be adopted through approved bylaws/resolution.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 3–9 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Utah: General public benefit is mandatory; a charter may add specific public benefits.
Why this changes the score: Utah offers Benefit corporation.
Utah offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Utah: §16-10a-841, amended 2025, permits approved bylaws/resolution as well as articles. Officer extension concerns regulated banks/depository institutions and is not general officer protection. Benefit-specific rule: Benefit director mandatory for publicly traded companies, optional for private companies; special benefit-director immunity excludes self-dealing, willful misconduct and knowing law violation.
Why this changes the score: Utah keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. 2025 ordinary exculpation can be adopted through approved bylaws/resolution.
Utah has an identified director monetary-protection provision in the compared scope, which earns this credit. §16-10a-841, amended 2025, permits approved bylaws/resolution as well as articles. Officer extension concerns regulated banks/depository institutions and is not general officer protection.
Utah does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Utah requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Utah earns the benefit-specific credit for company. Benefit director mandatory for publicly traded companies, optional for private companies; special benefit-director immunity excludes self-dealing, willful misconduct and knowing law violation.
Utah earns the benefit-specific credit for directors. Benefit director mandatory for publicly traded companies, optional for private companies; special benefit-director immunity excludes self-dealing, willful misconduct and knowing law violation.
Utah earns the benefit-specific credit for officers. Benefit director mandatory for publicly traded companies, optional for private companies; special benefit-director immunity excludes self-dealing, willful misconduct and knowing law violation.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Utah: Annual shareholder and public benefit report, plus upload/file with the division when renewing the normal business report. Assessment rule: Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Why this changes the score: Utah: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
Utah: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Utah: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Utah: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Utah has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Utah: Registry reporting: Utah has an $18 renewal plus a legally required benefit-report fee whose separate price is absent from the published schedule. Minimum tax/license used here: $100. Ordinary domestic C corporation, regular operating year, no Utah taxable profit and no special statutory exemption. Includes $100 annual minimum; registry fees and variable taxes excluded.
Why this changes the score: Utah’s tax minimum is known, but the separately required benefit-report filing price remains a genuine statute/schedule mismatch. The cost score stays a range.
Utah’s tax minimum is known, but the separately required benefit-report filing price remains a genuine statute/schedule mismatch. The cost score stays a range. Ordinary domestic C corporation, regular operating year, no Utah taxable profit and no special statutory exemption. Includes $100 annual minimum; registry fees and variable taxes excluded. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Utah: Becoming a benefit company: Two thirds of every class/series, including otherwise nonvoting shares; statutory short-form-merger exception. Model two-thirds class status protection, with statutory short-form transaction exceptions. Changing back: Same minimum status vote, with identified statutory merger exceptions.
Why this changes the score: Utah entry uses Two thirds of every class/series, including otherwise nonvoting shares; statutory short-form-merger exception.; exit uses Same minimum status vote, with identified statutory merger exceptions.. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Utah: becoming a benefit company requires Two thirds of every class/series, including otherwise nonvoting shares; statutory short-form-merger exception. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Utah: changing back requires Same minimum status vote, with identified statutory merger exceptions. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Utah: Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities. Disclosure: Annual shareholder and public benefit report, plus upload/file with the division when renewing the normal business report. Enforcement: Unlike ordinary model defaults, §16-10b-305(3)(b) permits charter increases to derivative ownership requirements.
Why this changes the score: Utah requires public access to the report. Articles can increase derivative benefit enforcement ownership requirements. State benefit report is required at renewal. Ordinary FY2027 renewal is $18; statutory separate-fee language and absence of a published benefit-report line item must be disclosed as a source discrepancy.
Utah requires report access for people outside the company, so it earns public-access credit. Annual shareholder and public benefit report, plus upload/file with the division when renewing the normal business report.
Utah: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Utah: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Utah makes a mission duty mandatory, so it earns this credit. Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Utah’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. general-benefit model with adjustable standing and division benefit-report filing
General public benefit is mandatory; a charter may add specific public benefits.
Directors must consider enumerated shareholders, workers, customers, community, environment, long-term interests and benefit purposes; no automatic priority, subject to permitted charter priorities.
Annual shareholder and public benefit report, plus upload/file with the division when renewing the normal business report.
Annual assessment against an independent third-party standard is required. Paid certification and a third-party audit are not required.
Unlike ordinary model defaults, §16-10b-305(3)(b) permits charter increases to derivative ownership requirements.
Benefit director mandatory for publicly traded companies, optional for private companies; special benefit-director immunity excludes self-dealing, willful misconduct and knowing law violation.
§16-10a-841, amended 2025, permits approved bylaws/resolution as well as articles. Officer extension concerns regulated banks/depository institutions and is not general officer protection. Retained exceptions: Improper financial benefit; Intentional infliction of harm; Specified unlawful distributions; Intentional criminal-law violation; Acts before the provision becomes effective. Activation: Articles OR bylaws/resolution approved by same shareholder percentage as articles amendment.
Entry: Two thirds of every class/series, including otherwise nonvoting shares; statutory short-form-merger exception.. Exit: Same minimum status vote, with identified statutory merger exceptions.. Model two-thirds class status protection, with statutory short-form transaction exceptions.
Ordinary: $18 / annual. FY2027 HB 8 §3 authorizes $13 profit-corporation annual report (line7565) and $5 single-sign-on portal fee (line7640), effective July 1, 2026. The agency current schedule independently quotes $18 inclusive of that surcharge. Benefit filing: §16-10b-402(4) requires a separate benefit report at normal renewal and says the Division shall charge an established fee. FY2027 HB 8 approved-fee list and the agency current schedule have no separately named benefit-report price; agency instructions upload it within the renewal. This publication mismatch prevents a verified separate-price or all-in quote; $18 is the verified ordinary renewal charge. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Corporate franchise/income tax is 4.45% of Utah taxable income for tax years beginning January 1, 2026 or later, with a $100 minimum. The 2026 change replaces 4.5%; taxable income and multistate apportionment determine amounts above the minimum. Every ordinary C corporation incorporated, qualified or doing business in Utah must file TC-20 and pay at least $100, even when it does not exercise its right to do business. Incorporation, qualification or doing-business nexus creates filing obligations. Multistate allocation/apportionment determines Utah taxable income; forming elsewhere does not remove Utah operating obligations. Compared yearly minimum addition: $100. Ordinary domestic C corporation, regular operating year, no Utah taxable profit and no special statutory exemption. Includes $100 annual minimum; registry fees and variable taxes excluded.
Articles can increase derivative benefit enforcement ownership requirements. 2025 ordinary exculpation can be adopted through approved bylaws/resolution. October 1, 2026 organizational-law changes and new benefit LLC chapter must be distinguished from stock benefit corporations. State benefit report is required at renewal. Ordinary FY2027 renewal is $18; statutory separate-fee language and absence of a published benefit-report line item must be disclosed as a source discrepancy.
high. The Division statute requires a benefit-report fee, but neither the FY2027 legislative approved-fee list nor current agency schedule names a separate benefit-report price. The report is uploaded in the ordinary renewal process; a distinct price cannot be truthfully stated from these publications. Selected statutory provisions; not a full case-law, charter or tax audit.
Independent benefit director is required even for an ordinary private startup. Any qualifying shareholder can enforce mission; no 2% or 5% direct-company threshold.
$656 / year, compared filings + minimum taxesMassachusetts keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Independent benefit director is required even for an ordinary private startup.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 16 |
| Less paperwork | 8 |
| Yearly state costs and taxes | 3 |
| Becoming a benefit company and changing back | 12 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Massachusetts: General benefit required; specific charter benefits optional and cannot significantly diminish general purpose.
Why this changes the score: Massachusetts offers Benefit corporation.
Massachusetts offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Massachusetts: Charter director fiduciary-damages exculpation excludes loyalty breaches, bad faith, intentional misconduct/knowing law violations, improper distributions and improper personal benefit. No ordinary officer clause. Benefit-specific rule: Corporation mission-failure damages barred. Directors/officers protected for compliant conduct and mission failure; benefit-director immunity except self-dealing, wilful/intentional misconduct or knowing violation.
Why this changes the score: Massachusetts keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Independent benefit director is required even for an ordinary private startup.
Massachusetts has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter director fiduciary-damages exculpation excludes loyalty breaches, bad faith, intentional misconduct/knowing law violations, improper distributions and improper personal benefit. No ordinary officer clause.
Massachusetts does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Massachusetts requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Massachusetts earns the benefit-specific credit for company. Corporation mission-failure damages barred. Directors/officers protected for compliant conduct and mission failure; benefit-director immunity except self-dealing, wilful/intentional misconduct or knowing violation.
Massachusetts earns the benefit-specific credit for directors. Corporation mission-failure damages barred. Directors/officers protected for compliant conduct and mission failure; benefit-director immunity except self-dealing, wilful/intentional misconduct or knowing violation.
Massachusetts earns the benefit-specific credit for officers. Corporation mission-failure damages barred. Directors/officers protected for compliant conduct and mission failure; benefit-director immunity except self-dealing, wilful/intentional misconduct or knowing violation.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Massachusetts: Annual to shareholders by earlier of 120 days or other annual report. Latest public online or free on request without website. Copy filed with state alongside annual report, extra $75. Assessment rule: Third-party standard assessment required; third-party certification/audit not required.
Why this changes the score: Massachusetts: Annual; Required outside framework; state benefit-report filing. An additional benefit-director or approval step applies to this private-company scope.
Massachusetts: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
Massachusetts: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Massachusetts: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
Massachusetts requires an additional benefit-director or report-approval procedure in this private-company scope, so it receives no no-extra-step credit. Mandatory stakeholder consideration and sound reasonable judgment. All benefit corporations need an independent benefit director, subject to boardless/professional-corporation exceptions.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Massachusetts: Registry reporting: $200 per year on an annualized basis. Minimum tax/license used here: $456. Small active ordinary domestic C corporation, regular full year, no taxable profit and a property/net-worth measure low enough that combined excise stays at the $456 minimum. Annual registry reporting is separate.
Why this changes the score: Massachusetts has a compared recurring floor of $656 per year, including $456 in identified minimum tax/license charges.
Massachusetts has a compared recurring floor of $656 per year, including $456 in identified minimum tax/license charges. Small active ordinary domestic C corporation, regular full year, no taxable profit and a property/net-worth measure low enough that combined excise stays at the $456 minimum. Annual registry reporting is separate. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Massachusetts: Becoming a benefit company: two-thirds of each class, including nonvoting. Entry/exit generally require two-thirds of every class/series including nonvoting; specified merger/asset transactions also require minimum status vote. Changing back: two-thirds of each class, including nonvoting
Why this changes the score: Massachusetts entry uses two-thirds of each class, including nonvoting; exit uses two-thirds of each class, including nonvoting. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
Massachusetts: becoming a benefit company requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Massachusetts: changing back requires two-thirds of each class, including nonvoting. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Massachusetts: Mandatory stakeholder consideration and sound reasonable judgment. All benefit corporations need an independent benefit director, subject to boardless/professional-corporation exceptions. Disclosure: Annual to shareholders by earlier of 120 days or other annual report. Latest public online or free on request without website. Copy filed with state alongside annual report, extra $75. Enforcement: Corporation; any shareholder, director, 5% parent equity, or persons allowed in charter/bylaws/shareholder agreement.
Why this changes the score: Massachusetts requires public access to the report. Any qualifying shareholder can enforce mission; no 2% or 5% direct-company threshold. Extra $75 annual benefit filing sits on top of corporate report and applicable $456 excise minimum.
Massachusetts requires report access for people outside the company, so it earns public-access credit. Annual to shareholders by earlier of 120 days or other annual report. Latest public online or free on request without website. Copy filed with state alongside annual report, extra $75.
Massachusetts: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
Massachusetts: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
Massachusetts makes a mission duty mandatory, so it earns this credit. Mandatory stakeholder consideration and sound reasonable judgment. All benefit corporations need an independent benefit director, subject to boardless/professional-corporation exceptions.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Massachusetts’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / independent-benefit-director model
General benefit required; specific charter benefits optional and cannot significantly diminish general purpose.
Mandatory stakeholder consideration and sound reasonable judgment. All benefit corporations need an independent benefit director, subject to boardless/professional-corporation exceptions.
Annual to shareholders by earlier of 120 days or other annual report. Latest public online or free on request without website. Copy filed with state alongside annual report, extra $75.
Third-party standard assessment required; third-party certification/audit not required.
Corporation; any shareholder, director, 5% parent equity, or persons allowed in charter/bylaws/shareholder agreement.
Corporation mission-failure damages barred. Directors/officers protected for compliant conduct and mission failure; benefit-director immunity except self-dealing, wilful/intentional misconduct or knowing violation.
Charter director fiduciary-damages exculpation excludes loyalty breaches, bad faith, intentional misconduct/knowing law violations, improper distributions and improper personal benefit. No ordinary officer clause.
Entry: two-thirds of each class, including nonvoting. Exit: two-thirds of each class, including nonvoting. Entry/exit generally require two-thirds of every class/series including nonvoting; specified merger/asset transactions also require minimum status vote.
Ordinary: $125 / annual. Quoted paper or walk-in annual report: $125, excluding late charges. The ordinary electronic report is separately priced at $100 plus a mandatory $10 expedited fee ($110 total). Benefit filing: $75 / annual. Paper or walk-in benefit report adds $75 to the $125 ordinary annual report: $200 in report filing fees. Agency instructions require a narrative Attachment Sheet filed with the annual report. Online/fax filings follow mandatory expedited-charge rules and are a separate payment method from this quoted paper baseline. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
An ordinary Massachusetts C corporation's corporate excise includes an 8% income measure plus a non-income measure of $2.60 per $1,000 of taxable Massachusetts tangible property or apportioned net worth. The total is subject to a $456 minimum; financial, security and other special corporations use different regimes. The ordinary business-corporation minimum excise is $456, including a loss or small income result; the property/net-worth component can increase the excise without profit. This is separate from the Secretary of the Commonwealth annual-report fee. The official FY27 tax-expenditure introduction describes apportioned Massachusetts income and allocable tangible property/net worth. Both corporate-excise measures require their own calculations; forming elsewhere does not remove excise nexus from Massachusetts operations. Compared yearly minimum addition: $456. Small active ordinary domestic C corporation, regular full year, no taxable profit and a property/net-worth measure low enough that combined excise stays at the $456 minimum. Annual registry reporting is separate.
Independent benefit director is required even for an ordinary private startup. Any qualifying shareholder can enforce mission; no 2% or 5% direct-company threshold. Extra $75 annual benefit filing sits on top of corporate report and applicable $456 excise minimum.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. The $200 annual report baseline uses the documented paper/walk-in method: $125 ordinary report and $75 attached benefit report. Electronic ordinary reporting is $110; online/fax processing has mandatory expedited charges. For-profit benefit status remains subject to applicable business-corporation tax rules. Selected statutory provisions; not a full case-law, charter or tax audit.
Higher 75% status-change vote. General mission legally controls inconsistent other purposes.
$89.5 / year, compared filings + minimum taxesNew York keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. No special mission-failure damages bar; reports identify owners with at least 5%.
| Area | Score |
|---|---|
| Benefit company option | 20 |
| Personal protections | 6 |
| Less paperwork | 11 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 8 |
| Public transparency | 20 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
New York: General benefit required and controls inconsistent other purposes; specific charter benefits optional.
Why this changes the score: New York offers Benefit corporation.
New York offers Benefit corporation. The benefit option receives the full form credit.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
New York: Charter may exculpate directors against corporation/shareholder damages; exceptions bad faith, intentional misconduct/knowing law violation, actual improper financial profit/advantage and §719 distribution liability. No officer clause; no retroactive effect. Benefit-specific rule: No standalone director/officer/corporation mission-failure monetary bar in Article 17. Stakeholder consideration is not a director-law violation; beneficiaries alone gain no director duty unless charter/bylaws provide otherwise.
Why this changes the score: New York keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. No special mission-failure damages bar; reports identify owners with at least 5%.
New York has an identified director monetary-protection provision in the compared scope, which earns this credit. Charter may exculpate directors against corporation/shareholder damages; exceptions bad faith, intentional misconduct/knowing law violation, actual improper financial profit/advantage and §719 distribution liability. No officer clause; no retroactive effect.
New York does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
New York requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
New York has no separately credited benefit-specific monetary shield for company. No standalone director/officer/corporation mission-failure monetary bar in Article 17. Stakeholder consideration is not a director-law violation; beneficiaries alone gain no director duty unless charter/bylaws provide otherwise.
New York has no separately credited benefit-specific monetary shield for directors. No standalone director/officer/corporation mission-failure monetary bar in Article 17. Stakeholder consideration is not a director-law violation; beneficiaries alone gain no director duty unless charter/bylaws provide otherwise.
New York has no separately credited benefit-specific monetary shield for officers. No standalone director/officer/corporation mission-failure monetary bar in Article 17. Stakeholder consideration is not a director-law violation; beneficiaries alone gain no director duty unless charter/bylaws provide otherwise.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
New York: Annual to shareholders within 120 days, latest public online if website and state copy. Lists names of ≥5% owners and director compensation; public copies may omit compensation/financial/proprietary information. No no-website request-copy clause in §1708. Assessment rule: Third-party standard assessment required; no mandatory external certification/audit in Article 17.
Why this changes the score: New York: Annual; Required outside framework; state benefit-report filing. No additional scored benefit-director/report-approval step applies to this private-company scope.
New York: Annual. An annual report gets less ease-of-operation credit than a biennial report or no mandatory report because it must be prepared more often.
New York: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New York: State benefit-report filing. The extra filing removes the no-extra-filing credit; ordinary corporate reports are separate.
New York has no additional scored benefit-director/report-approval step for this private-company scope, so it earns the ease-of-operation credit. Public-company rules and other duties may differ.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
New York: Registry reporting: $64.5 per year on an annualized basis. Minimum tax/license used here: $25. Small active ordinary domestic C corporation in a regular year, New York receipts no more than $100,000, no taxable profit, qualifies for the small-business capital-base exemption or has capital tax no greater than $25, and operates outside the MCTD and New York City. Special emerging-technology status is not assumed.
Why this changes the score: New York has a compared recurring floor of $89.5 per year, including $25 in identified minimum tax/license charges.
New York has a compared recurring floor of $89.5 per year, including $25 in identified minimum tax/license charges. Small active ordinary domestic C corporation in a regular year, New York receipts no more than $100,000, no taxable profit, qualifies for the small-business capital-base exemption or has capital tax no greater than $25, and operates outside the MCTD and New York City. Special emerging-technology status is not assumed. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
New York: Becoming a benefit company: 75% of each entitled voting class/series. Entry/exit minimum status vote is 75% of each class/series entitled to vote. Unlike many model states, definition does not extend the vote automatically to every otherwise nonvoting class. Changing back: 75% of each entitled voting class/series
Why this changes the score: New York entry uses 75% of each entitled voting class/series; exit uses 75% of each entitled voting class/series. Easier entry helps adoption. Easier exit also scores higher here, although a mission-preservation priority may favor a harder exit.
New York: becoming a benefit company requires 75% of each entitled voting class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
New York: changing back requires 75% of each entitled voting class/series. Ordinary votes receive more ease-of-change credit than two-thirds; three-quarters, 90% and unanimous gates receive less. Class votes, notice, appraisal and any higher charter requirements remain.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
New York: Directors and officers must consider enumerated stakeholders; charter may prioritize specified benefit. No independent benefit director required. Disclosure: Annual to shareholders within 120 days, latest public online if website and state copy. Lists names of ≥5% owners and director compensation; public copies may omit compensation/financial/proprietary information. No no-website request-copy clause in §1708. Enforcement: Article 17 creates no separate benefit-enforcement proceeding or ownership-percentage threshold. Ordinary BSC §626 permits a record/beneficial shareholder or voting-trust holder to sue derivatively if holding at suit and at the challenged transaction (or receiving by operation of law), with particularized board-demand efforts or reasons for no demand. Under §627, plaintiffs below 5% of a share class and holding interests worth no more than $50,000 can be required to post security for defense expenses; this is an expense-security rule, not a 5% standing cutoff.
Why this changes the score: New York requires public access to the report. No special mission-failure damages bar; reports identify owners with at least 5%.
New York requires report access for people outside the company, so it earns public-access credit. Annual to shareholders within 120 days, latest public online if website and state copy. Lists names of ≥5% owners and director compensation; public copies may omit compensation/financial/proprietary information. No no-website request-copy clause in §1708.
New York: Annual. Annual updates earn more transparency credit than biennial updates; no mandated report earns none.
New York: Required. Using an outside framework reduces flexibility credit but earns transparency credit.
New York makes a mission duty mandatory, so it earns this credit. Directors and officers must consider enumerated stakeholders; charter may prioritize specified benefit. No independent benefit director required.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download New York’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. General-benefit / ordinary-corporate-enforcement model
General benefit required and controls inconsistent other purposes; specific charter benefits optional.
Directors and officers must consider enumerated stakeholders; charter may prioritize specified benefit. No independent benefit director required.
Annual to shareholders within 120 days, latest public online if website and state copy. Lists names of ≥5% owners and director compensation; public copies may omit compensation/financial/proprietary information. No no-website request-copy clause in §1708.
Third-party standard assessment required; no mandatory external certification/audit in Article 17.
Article 17 creates no separate benefit-enforcement proceeding or ownership-percentage threshold. Ordinary BSC §626 permits a record/beneficial shareholder or voting-trust holder to sue derivatively if holding at suit and at the challenged transaction (or receiving by operation of law), with particularized board-demand efforts or reasons for no demand. Under §627, plaintiffs below 5% of a share class and holding interests worth no more than $50,000 can be required to post security for defense expenses; this is an expense-security rule, not a 5% standing cutoff.
No standalone director/officer/corporation mission-failure monetary bar in Article 17. Stakeholder consideration is not a director-law violation; beneficiaries alone gain no director duty unless charter/bylaws provide otherwise.
Charter may exculpate directors against corporation/shareholder damages; exceptions bad faith, intentional misconduct/knowing law violation, actual improper financial profit/advantage and §719 distribution liability. No officer clause; no retroactive effect.
Entry: 75% of each entitled voting class/series. Exit: 75% of each entitled voting class/series. Entry/exit minimum status vote is 75% of each class/series entitled to vote. Unlike many model states, definition does not extend the vote automatically to every otherwise nonvoting class.
Ordinary: $9 / biennial. Domestic/foreign business-corporation statement every two years, not $9 annually. Benefit filing: $60 / annual. DOS expressly requires $60 with the annual benefit report within 120 days after fiscal year end. Submit the report with a white cover/backer giving its statutory title and the name/address for the filing receipt to Division of Corporations, One Commerce Plaza, 99 Washington Avenue, Albany NY 12231. This is separate from the $9 biennial statement. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
New York Article 9-A general C corporations pay 6.5% of the business-income base, or 7.25% on the entire base when it exceeds $5 million; the higher rate covers 2026. Qualified manufacturers and emerging-technology companies have special rates. Tax is the highest of business income, business capital or fixed-dollar minimum, plus any applicable MTA surcharge. The general fixed-dollar minimum is $25 when New York receipts are no more than $100,000, rising by receipts tiers to $200,000. The general capital-base rate is 0.1875% for 2026, capped at $5 million; qualified small businesses and other specified classes are exempt from that base. A qualifying final-return/inactive domestic corporation can stop the minimum in later years. Article 9-A covers New York incorporation and specified business, capital, property, office or receipt activity of foreign corporations. The MCTD imposes an additional surcharge in listed counties; NYC has separate business taxes. Customer-market sourcing and combined returns mean a charter outside New York is not a tax escape. Compared yearly minimum addition: $25. Small active ordinary domestic C corporation in a regular year, New York receipts no more than $100,000, no taxable profit, qualifies for the small-business capital-base exemption or has capital tax no greater than $25, and operates outside the MCTD and New York City. Special emerging-technology status is not assumed.
Higher 75% status-change vote. General mission legally controls inconsistent other purposes. No special mission-failure damages bar; reports identify owners with at least 5%.
Primary statutory provisions reviewed; implementation and tax qualifications are separately identified.. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office. Domestic corporation annual report $25.
$25 / year, compared filings + minimum taxesMichigan keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Michigan: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: Michigan has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
Michigan has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Michigan: Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: Michigan keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office.
Michigan has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office.
Michigan does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Michigan requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Michigan has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Michigan has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Michigan has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Michigan: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
Michigan: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Michigan: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Michigan: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
Michigan has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Michigan: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation under the standard CIT regime, Michigan apportioned/allocated gross receipts below $350,000, and no Michigan taxable profit: $0 CIT. Excludes registry fees, legacy MBT elections, financial/insurance regimes, and other operating taxes.
Why this changes the score: Michigan has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges.
Michigan has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation under the standard CIT regime, Michigan apportioned/allocated gross receipts below $350,000, and no Michigan taxable profit: $0 CIT. Excludes registry fees, legacy MBT elections, financial/insurance regimes, and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Michigan: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
Michigan: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Michigan: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Michigan: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
Michigan has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
Michigan: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Michigan: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Michigan has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Michigan’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $25 / annual. Domestic corporation annual report $25. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Michigan's standard Corporate Income Tax is 6% of the corporate income tax base after allocation/apportionment. For ordinary taxpayers, apportioned/allocated gross receipts below $350,000 or tax liability of $100 or less remove the CIT return/payment requirement. The $100 amount is a liability threshold, not an annual minimum tax. No general fixed franchise/capital minimum for an ordinary standard CIT civic/technology corporation. Financial institutions and insurers have separate industry regimes; a financial-institution franchise tax is not a general incorporation charge. Corporate annual report fees remain separate. Michigan nexus can arise from physical presence, active solicitation with Michigan receipts, or interests in a flow-through entity with nexus. Business income and sales of unitary groups affect the base and single-sales-factor apportionment. Threshold eligibility must be tested using the tax-defined receipts and group, not a homepage revenue estimate. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation under the standard CIT regime, Michigan apportioned/allocated gross receipts below $350,000, and no Michigan taxable profit: $0 CIT. Excludes registry fees, legacy MBT elections, financial/insurance regimes, and other operating taxes.
Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office. Domestic corporation annual report $25. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation. October 2024 official fee schedule: corporate annual report $25.
$50 / year, compared filings + minimum taxesMississippi keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Mississippi: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: Mississippi has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
Mississippi has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Mississippi: Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: Mississippi keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation.
Mississippi has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation.
Mississippi does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Mississippi requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Mississippi has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Mississippi has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Mississippi has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Mississippi: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
Mississippi: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Mississippi: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Mississippi: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
Mississippi has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Mississippi: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $25. Small active domestic C corporation in a regular 2026 tax year, no taxable profit and a capital/property computation at or below the $25 franchise minimum. Annual registry reporting is separate.
Why this changes the score: Mississippi has a compared recurring floor of $50 per year, including $25 in identified minimum tax/license charges.
Mississippi has a compared recurring floor of $50 per year, including $25 in identified minimum tax/license charges. Small active domestic C corporation in a regular 2026 tax year, no taxable profit and a capital/property computation at or below the $25 franchise minimum. Annual registry reporting is separate. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Mississippi: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
Mississippi: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Mississippi: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Mississippi: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
Mississippi has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
Mississippi: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Mississippi: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Mississippi has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Mississippi’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $25 / annual. October 2024 official fee schedule: corporate annual report $25. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Mississippi corporate income tax is 0% on the first $5,000 of taxable income, 4% on the next $5,000, and 5% above $10,000. There is no minimum corporate income tax; the state's corporate franchise minimum is separate. For a tax year beginning in 2026, franchise tax is $0.50 per $1,000 or fraction on the applicable capital/property base, with the stated $100,000 capital exclusion and a $25 minimum. It falls to $0.25 per $1,000 for 2027 and is scheduled for repeal in 2028. Domestic or qualified inactive corporations still file. DOR requires corporations doing business, earning income or existing in Mississippi to file, including inactive domestic or qualified corporations. Capital employed and assessed Mississippi property can produce franchise tax without profit; the franchise base is not simply the income-tax base. Compared yearly minimum addition: $25. Small active domestic C corporation in a regular 2026 tax year, no taxable profit and a capital/property computation at or below the $25 franchise minimum. Annual registry reporting is separate.
Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation. October 2024 official fee schedule: corporate annual report $25. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply. Online $20 annual or $40 biennial; paper $45 or $90.
$20 / year, compared filings + minimum taxesMissouri keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Missouri: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: Missouri has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
Missouri has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Missouri: Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: Missouri keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply.
Missouri has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply.
Missouri does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Missouri requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Missouri has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Missouri has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Missouri has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Missouri: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
Missouri: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Missouri: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Missouri: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
Missouri has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Missouri: Registry reporting: $20 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation operating in Missouri with zero Missouri taxable income after state modifications: $0 corporate income tax, with no ordinary franchise minimum. Excludes report fees and other operating taxes.
Why this changes the score: Missouri has a compared recurring floor of $20 per year, including $0 in identified minimum tax/license charges.
Missouri has a compared recurring floor of $20 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation operating in Missouri with zero Missouri taxable income after state modifications: $0 corporate income tax, with no ordinary franchise minimum. Excludes report fees and other operating taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Missouri: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
Missouri: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Missouri: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Missouri: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
Missouri has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
Missouri: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Missouri: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Missouri has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Missouri’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $20 / annual. Online $20 annual or $40 biennial; paper $45 or $90. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Missouri ordinary C-corporation income tax is a flat 4% of Missouri taxable income for tax years 2020 and later. The ordinary corporation franchise tax is no longer imposed for tax years beginning on or after January 1, 2016. No surviving general fixed franchise/capital minimum applies to the ordinary civic/technology C corporation. Corporate registration-report charges remain separate. Missouri taxable income starts with federal taxable income and state modifications, followed by applicable allocation/apportionment. Multistate corporations generally use the receipts factor for business income; nonapportionable income requires separate support. Corporate filing and registration duties can remain even when the tax computation is zero. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation operating in Missouri with zero Missouri taxable income after state modifications: $0 corporate income tax, with no ordinary franchise minimum. Excludes report fees and other operating taxes.
Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply. Online $20 annual or $40 biennial; paper $45 or $90. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies. Annual corporate report $25.
$25 / year, compared filings + minimum taxesNorth Dakota keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 15 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
North Dakota: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: North Dakota has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
North Dakota has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
North Dakota: Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: North Dakota keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies.
North Dakota has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies.
North Dakota does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
North Dakota requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
North Dakota has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
North Dakota has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
North Dakota has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
North Dakota: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
North Dakota: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
North Dakota: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
North Dakota: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
North Dakota has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
North Dakota: Registry reporting: $25 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic C corporation operating in North Dakota with no North Dakota taxable income after adjustments and apportionment: $0 regular corporate tax and no separate general franchise/capital minimum. Even an applicable water's-edge surtax has a zero taxable base in this scenario.
Why this changes the score: North Dakota has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges.
North Dakota has a compared recurring floor of $25 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic C corporation operating in North Dakota with no North Dakota taxable income after adjustments and apportionment: $0 regular corporate tax and no separate general franchise/capital minimum. Even an applicable water's-edge surtax has a zero taxable base in this scenario. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
North Dakota: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
North Dakota: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
North Dakota: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
North Dakota: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
North Dakota has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
North Dakota: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
North Dakota: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
North Dakota has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download North Dakota’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $25 / annual. Annual corporate report $25. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
North Dakota ordinary corporate income tax has marginal rates of 1.41% on the first $25,000, 3.55% on the next $25,000, and 4.31% above $50,000 of North Dakota taxable income. A water's-edge filing election adds a 3.5% surtax on North Dakota taxable income. The regular rates have remained unchanged since 2015. The ordinary civic/technology stock C corporation has no separate general fixed franchise/capital minimum in the current corporate income-tax computation. Tax follows North Dakota taxable income; bank taxation and Secretary of State annual report fees are separate. The water's-edge surtax is income-based, not a flat charge. Corporations doing business in or earning North Dakota-source income generally file Form 40. State adjustments, allocation/apportionment, combined reporting, and filing elections affect taxable income. The usual apportionment is three-factor property/payroll/sales, with an elective single-sales-factor method; an incorporation-state comparison does not determine tax on actual operations. Compared yearly minimum addition: $0. Small active ordinary domestic C corporation operating in North Dakota with no North Dakota taxable income after adjustments and apportionment: $0 regular corporate tax and no separate general franchise/capital minimum. Even an applicable water's-edge surtax has a zero taxable base in this scenario.
Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies. Annual corporate report $25. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit. Domestic $100 biennial = $50 annualized; business license is additional.
$100 / year, compared filings + minimum taxesAlaska keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Alaska: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: Alaska has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
Alaska has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Alaska: Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: Alaska keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit.
Alaska has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit.
Alaska does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Alaska requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Alaska has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Alaska has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Alaska has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Alaska: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
Alaska: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Alaska: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Alaska: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
Alaska has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Alaska: Registry reporting: $50 per year on an annualized basis. Minimum tax/license used here: $50. Ordinary domestic C corporation operating a general business in Alaska, one business name, regular license renewal year. Includes $50 state business license only; excludes registry charges and income, alternative minimum, payroll, property and local taxes.
Why this changes the score: Alaska has a compared recurring floor of $100 per year, including $50 in identified minimum tax/license charges.
Alaska has a compared recurring floor of $100 per year, including $50 in identified minimum tax/license charges. Ordinary domestic C corporation operating a general business in Alaska, one business name, regular license renewal year. Includes $50 state business license only; excludes registry charges and income, alternative minimum, payroll, property and local taxes. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Alaska: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
Alaska: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Alaska: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Alaska: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
Alaska has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
Alaska: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Alaska: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Alaska has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Alaska’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $100 / biennial. Domestic $100 biennial = $50 annualized; business license is additional. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Corporate net income tax uses graduated marginal rates from 0% to 9.4% on Alaska taxable income: no regular tax below $25,000 and 9.4% on income above $222,000. Alternative minimum tax and special industry rules can apply. An ordinary business operating in Alaska needs a $50 annual state business license ($100 for two years), separate from the corporation's biennial registry report. License exemptions are activity-specific; sole-proprietor senior/veteran discounts do not establish a corporate discount. Alaska-source income and nexus matter. Multistate corporations allocate/apportion income; incorporation elsewhere does not remove Alaska operating taxes. Other operating states can also impose taxes. Compared yearly minimum addition: $50. Ordinary domestic C corporation operating a general business in Alaska, one business name, regular license renewal year. Includes $50 state business license only; excludes registry charges and income, alternative minimum, payroll, property and local taxes.
Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit. Domestic $100 biennial = $50 annualized; business license is additional. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate. Current agency table: $55 electronic annual report, $70 paper; older $50/$65 instructions conflict.
$55 / year, compared filings + minimum taxesSouth Dakota keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
South Dakota: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: South Dakota has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
South Dakota has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
South Dakota: Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: South Dakota keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate.
South Dakota has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate.
South Dakota does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
South Dakota requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
South Dakota has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
South Dakota has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
South Dakota has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
South Dakota: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
South Dakota: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
South Dakota: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
South Dakota: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
South Dakota has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
South Dakota: Registry reporting: $55 per year on an annualized basis. Minimum tax/license used here: $0. Small active ordinary domestic civic/technology stock C corporation operating in South Dakota, outside bank/regulated-industry regimes: $0 general corporate income or franchise/capital minimum. Excludes report, sales/use, employment, property, and local charges.
Why this changes the score: South Dakota has a compared recurring floor of $55 per year, including $0 in identified minimum tax/license charges.
South Dakota has a compared recurring floor of $55 per year, including $0 in identified minimum tax/license charges. Small active ordinary domestic civic/technology stock C corporation operating in South Dakota, outside bank/regulated-industry regimes: $0 general corporate income or franchise/capital minimum. Excludes report, sales/use, employment, property, and local charges. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
South Dakota: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
South Dakota: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
South Dakota: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
South Dakota: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
South Dakota has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
South Dakota: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
South Dakota: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
South Dakota has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download South Dakota’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $55 / annual. Current agency table: $55 electronic annual report, $70 paper; older $50/$65 instructions conflict. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
South Dakota does not impose a general corporate income tax. The ordinary civic/technology stock C corporation is outside the separately imposed bank franchise-tax regime. No general fixed corporate franchise/capital tax is identified for an ordinary domestic civic/technology corporation in South Dakota's tax regime. Bank franchise tax is restricted to covered financial institutions. Annual corporate report charges and activity-specific licenses are separate; no corporate income tax does not mean no business taxes. South Dakota taxes many products and services through state and municipal sales/use taxes, and a taxable business may need licensing even when no corporate income tax applies. Remote-seller and other nexus rules can apply to activity irrespective of charter state. Federal tax and taxes in other operating states remain separate. Compared yearly minimum addition: $0. Small active ordinary domestic civic/technology stock C corporation operating in South Dakota, outside bank/regulated-industry regimes: $0 general corporate income or franchise/capital minimum. Excludes report, sales/use, employment, property, and local charges.
Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate. Current agency table: $55 electronic annual report, $70 paper; older $50/$65 instructions conflict. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate. Annual combined report/license tax: greater of $60 or .0002 of assets located and employed in Wyoming; not two separate charges.
$60 / year, compared filings + minimum taxesWyoming keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 6 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 12 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
Wyoming: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: Wyoming has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
Wyoming has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
Wyoming: Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: Wyoming keeps this ordinary shield limited to directors; the charter must elect the ordinary protection. Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate.
Wyoming has an identified director monetary-protection provision in the compared scope, which earns this credit. Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate.
Wyoming does not extend the scored ordinary charter shield to officers acting only as officers, so no officer credit is awarded. Separate indemnification or insurance may still matter.
Wyoming requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
Wyoming has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Wyoming has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Wyoming has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
Wyoming: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
Wyoming: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Wyoming: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Wyoming: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
Wyoming has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
Wyoming: Registry reporting: $60 per year on an annualized basis. Minimum tax/license used here: $0. Ordinary domestic corporation with Wyoming assets no more than $300,000. $60 license tax is already counted in regularReport, so the additional tax component is $0. Variable asset excess, payment convenience fees and other operating taxes excluded.
Why this changes the score: Wyoming has a compared recurring floor of $60 per year, including $0 in identified minimum tax/license charges.
Wyoming has a compared recurring floor of $60 per year, including $0 in identified minimum tax/license charges. Ordinary domestic corporation with Wyoming assets no more than $300,000. $60 license tax is already counted in regularReport, so the additional tax component is $0. Variable asset excess, payment convenience fees and other operating taxes excluded. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
Wyoming: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
Wyoming: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Wyoming: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
Wyoming: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
Wyoming has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
Wyoming: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
Wyoming: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
Wyoming has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download Wyoming’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $60 / annual. Annual combined report/license tax: greater of $60 or .0002 of assets located and employed in Wyoming; not two separate charges. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
Wyoming has no corporate income tax. Its annual-report license tax is based on Wyoming assets, not net income: the greater of $60 or 0.0002 times assets located and employed in Wyoming. The $60 minimum annual-report license tax applies with Wyoming assets up to $300,000; larger Wyoming assets increase it. This is the same charge already represented by the annual-report fee, so adding another $60 tax would double-count it. The license base uses assets located and employed in Wyoming. Operations, employees or sales in other states can create income and other tax nexus there despite Wyoming's lack of corporate income tax. Compared yearly minimum addition: $0. Ordinary domestic corporation with Wyoming assets no more than $300,000. $60 license tax is already counted in regularReport, so the additional tax component is $0. Variable asset excess, payment convenience fees and other operating taxes excluded.
Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate. Annual combined report/license tax: greater of $60 or .0002 of assets located and employed in Wyoming; not two separate charges. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions. Statutory electronic annual report $18, paper $25; portal transaction fees additional.
$218 / year, compared filings + minimum taxesNorth Carolina adds ordinary officer coverage; the charter must elect the ordinary protection. 2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions.
| Area | Score |
|---|---|
| Benefit company option | 0 |
| Personal protections | 10 |
| Less paperwork | 0 |
| Yearly state costs and taxes | 6 |
| Becoming a benefit company and changing back | 0 |
| Public transparency | 0 |
Usual starting point: The usual benefit-corporation model is a for-profit stock company with a public-benefit purpose. Washington uses a related social-purpose form; eight states have no identified dedicated for-profit benefit form.
North Carolina: Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
Why this changes the score: North Carolina has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason.
North Carolina has ordinary for-profit corporations, but no dedicated for-profit benefit form in the reviewed law. It loses benefit-form credit for that specific reason. A nonprofit public-benefit corporation is a different entity and does not fill this for-profit gap.
Usual starting point: The common starting point is a director protection clause that must be added to the charter. Many states do not extend that ordinary clause to officers. Exceptions, eligible people and covered claims differ.
North Carolina: 2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions. Benefit-specific rule: No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Why this changes the score: North Carolina adds ordinary officer coverage; the charter must elect the ordinary protection. 2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions.
North Carolina has an identified director monetary-protection provision in the compared scope, which earns this credit. 2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions.
North Carolina extends ordinary protection to officers in a limited eligible-officer scope, so it receives less credit than the broader officer category. 2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions.
North Carolina requires an elected charter provision for the scored ordinary protection; it gets no automatic-coverage credit. The clause must actually be put in the charter to help.
North Carolina has no separately credited benefit-specific monetary shield for company. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
North Carolina has no separately credited benefit-specific monetary shield for directors. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
North Carolina has no separately credited benefit-specific monetary shield for officers. No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
Usual starting point: The most common benefit model requires an annual report using an outside assessment framework, without a separate state benefit-report filing. An outside framework does not necessarily mean paying for certification.
North Carolina: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Assessment rule: No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
Why this changes the score: No benefit reporting credit applies because this state does not offer the requested form; that does not mean an ordinary company has no filings.
North Carolina: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
North Carolina: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
North Carolina: No dedicated form. No dedicated benefit form means this benefit-specific factor receives no credit.
North Carolina has no dedicated benefit form, so this benefit-specific factor receives no credit.
Usual starting point: There is no uniform state charge. Compare the recurring report fee together with the minimum state tax or license charge for the stated small-company scenario. A low income-tax rate alone does not show this cost.
North Carolina: Registry reporting: $18 per year on an annualized basis. Minimum tax/license used here: $200. Small active domestic C corporation in a regular year, no taxable profit and sufficiently low franchise net-worth base that the calculation remains $200. Registry reporting and other taxes are excluded.
Why this changes the score: North Carolina has a compared recurring floor of $218 per year, including $200 in identified minimum tax/license charges.
North Carolina has a compared recurring floor of $218 per year, including $200 in identified minimum tax/license charges. Small active domestic C corporation in a regular year, no taxable profit and sufficiently low franchise net-worth base that the calculation remains $200. Registry reporting and other taxes are excluded. Lower recurring floors earn more cost credit. Profit/receipts-based taxes and local charges are additional; this is not the whole tax bill.
Usual starting point: Two-thirds approval is the common benefit-status gate. Some states use ordinary amendment votes, some demand more, and class-by-class voting can give even a small share class a veto.
North Carolina: Becoming a benefit company: No dedicated for-profit benefit election applies. Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules. Changing back: not_applicable
Why this changes the score: No direct benefit-status election or exit exists in this state; an interstate move or a law change is a different process.
North Carolina: becoming a benefit company requires No dedicated for-profit benefit election applies. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
North Carolina: changing back requires not_applicable. There is no dedicated benefit status to elect or remove, so this factor receives no credit.
Usual starting point: Annual reporting, public access, an outside assessment framework and a mandatory mission duty are common. Stronger disclosure can help people check promises while adding work or exposing owner information.
North Carolina: No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute. Disclosure: No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below. Enforcement: No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
Why this changes the score: The ordinary corporation has no dedicated statutory benefit duty/report in this reviewed form. That is why it receives no benefit-accountability credit.
North Carolina has no dedicated benefit-report rule in this ordinary form, so it receives no benefit-publication credit.
North Carolina: No dedicated form. There is no benefit-report obligation for this ordinary form, and no benefit-form reporting credit.
North Carolina: No dedicated form. No dedicated benefit form means this benefit-specific factor is not applicable.
North Carolina has no mandatory benefit mission duty in the compared form, so it receives no mandatory-duty credit. No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
Equal scores mean the same broad features, even when exceptions differ. Yearly cost credit includes the stated minimum tax/license scenario; income and receipts taxes are explained below and can be larger. Scores do not predict court outcomes or company value.
Download North Carolina’s full guide and sources ↓Compared variant: New private stock corporation; optional mission lock not elected. no dedicated form identified
Mission can be stated in ordinary governing documents, but no dedicated for-profit benefit form was identified.
No benefit-status stakeholder duty applies to this ordinary corporation. Its board follows ordinary corporate duties and its valid charter provisions; adding a mission statement does not create a benefit-corporation statute.
No separate benefit-status annual report, shareholder benefit statement or public benefit assessment is required under a dedicated for-profit benefit statute. Ordinary corporate registry filings still apply at the charges shown below.
No statutory benefit-status third-party assessment or private certification mandate applies. The company may adopt voluntary standards or seek private B Corp certification separately.
No special benefit enforcement proceeding or benefit-specific shareholder percentage gate applies. Ordinary corporate and contractual claims remain available under their own standing rules.
No benefit-specific immunity for failure to achieve a mission exists for this ordinary corporation. The ordinary director/officer rules below and any lawful indemnification or insurance apply on their own terms.
2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions.
Benefit-status entry, exit and permanent mission-lock provisions do not apply because no dedicated domestic for-profit form was identified. Ordinary amendments, mergers or conversion/qualification in another state use their own statutory rules.
Ordinary: $18 / annual. Statutory electronic annual report $18, paper $25; portal transaction fees additional. Benefit filing: $0 / none. No separate statutory benefit form/report identified. Minimum taxes now enter the yearly cost score; these report figures alone exclude taxes and agents.
North Carolina corporate income tax is 2% for tax years beginning in 2026, on North Carolina net taxable income. The official rate page distinguishes 2025's 2.25% and prior years; the income rate should not be mistaken for the total corporate tax burden. An ordinary C corporation also pays franchise tax of $1.50 per $1,000 of the tax base, subject to a $500 maximum on the first $1 million and an overall $200 minimum under the current rule. S corporations have a different $200-first-$1-million formula. Annual reports are separate. G.S. 105-122 uses book net worth with statutory adjustments, not simply taxable profits. The revenue agency taxes corporations chartered or doing business in North Carolina; income and franchise allocation/apportionment rules and nexus must be examined for actual North Carolina activity. Compared yearly minimum addition: $200. Small active domestic C corporation in a regular year, no taxable profit and sufficiently low franchise net-worth base that the calculation remains $200. Registry reporting and other taxes are excluded.
2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions. Statutory electronic annual report $18, paper $25; portal transaction fees additional. The form-availability gap is the only shared grouping; ordinary protections and charges differ.
Current fee source; official ordinary-code verification where stated. Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. Selected statutory provisions; not a full case-law, charter or tax audit.
03 / Put the rules side by side
All 50 state records cover the selected dimensions, including distinct ordinary corporate protections in the eight form-gap states.
Choose any three of all 50 states. Entry votes generally concern converting an existing company; a new benefit charter is a separate formation route. Each row links to primary provisions. A statutory option that does not exist is labeled “not applicable”; source-specific qualifications explain conditional rules.
FOLLOW THE POINTS
See the reasons for each state’s score side by side. Choose different states or priorities to explore the tradeoffs.
MAKE YOUR PRIORITIES EXPLICIT
These scores help someone choosing a state for a new private company. They cover the benefit-company option, personal protections, paperwork, yearly filings and minimum taxes, becoming a benefit company and changing back, and public transparency. Two states can have the same score and still have different rules.
A starting point across six areas, including entry votes and minimum recurring state taxes.
Less paperwork can make a company easier to run. More public reporting can make it easier to hold the company to its promises. Choose the view that fits your priorities, then open a state to read its reasons.
Utah shows a score range. Its law requires a benefit-report fee, but the official fee schedule does not give a separate amount. The range keeps that uncertainty visible.
The cost score now includes the identified minimum state taxes and license charges in the stated scenario. It still cannot predict variable operating taxes, lawsuit results or company value. Read each state’s rules and exceptions before making a decision.
50 of 50 states · sorted by confirmed lower score · rank bands account for ties and Utah’s published fee mismatch
| Rank band | State | Score / 100 | Distinctive provisions & known charges |
|---|---|---|---|
| 1 | Benefit corporation | 84Scores by areaBenefit company option Score: 20 Personal protections Score: 23 Less paperwork Score: 12 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Status vote denominator is present-and-voting, unlike outstanding-share models. Automatic ordinary officer as well as director exculpation. Compared yearly floor: $35 annualized. Ordinary small active domestic C corporation, regular taxable period beginning in 2026, no Louisiana taxable profit after state adjustments. The repealed franchise charge contributes $0; annual-report fees and other operating taxes remain outside the figure. Evidence qualifications (1)Benefit statute retains references to pre-2015 corporate-law sections; interaction with 2015 Business Corporation Act should be confirmed in drafting. |
| 1 | Benefit corporation | 84Scores by areaBenefit company option Score: 20 Personal protections Score: 22 Less paperwork Score: 20 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 9 | Annual shareholder benefit statement is mandatory, but public release and independent-standard reporting are optional. Do not equate third-party language in the purpose definition with a mandatory annual outside report. Compared yearly floor: $0 annualized. Small active ordinary domestic stock C corporation operating in Oklahoma with no Oklahoma taxable income after state adjustments: $0 ordinary corporate tax and no former franchise minimum. Excludes report/permit fees and other operating taxes. |
| 3 | Benefit corporation | 79Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 15 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Derivative threshold is 2% of a class/series, unlike Arizona’s 2% total ownership. Independent benefit director is mandatory only for public companies, optional for private companies. Compared yearly floor: $30 annualized. Ordinary domestic C corporation operating in Idaho, no taxable profit, no credit or special exemption. Includes both $20 corporate minimum and $10 PBF; excludes registry and variable operating taxes. Do not add another $10 if PBF has already been counted separately. |
| 3 | Benefit corporation | 79Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 15 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Any-shareholder benefit enforcement and potential plaintiff fee awards increase accountability. Director benefit-failure shield expressly depends on compliance with the benefit part. Compared yearly floor: $50 annualized. Ordinary domestic C corporation operating in Montana, no taxable profit, standard tax method and no special exception/credit. Includes $50 minimum; excludes registry fees and variable tax. |
| 3 | Benefit corporation | 79Scores by areaBenefit company option Score: 20 Personal protections Score: 22 Less paperwork Score: 11 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Both director/officer ordinary protections available through shareholder-adopted bylaws. Benefit-director special immunity uses recklessness exception, ordinary benefit-duty clause uses knowing violation. Compared yearly floor: $77 annualized. Small active ordinary domestic C corporation in a regular 2026 tax year with no Pennsylvania taxable profit after state modifications and apportionment. Excludes annual corporate/benefit reporting and local or sector-specific taxes. Evidence qualifications (1)Statutory registered-corporation classification has fact-specific securities-law edge cases. |
| 6 | Benefit corporation | 78Scores by areaBenefit company option Score: 20 Personal protections Score: 12 Less paperwork Score: 20 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 17 | Optional external standard, but mandatory public annual reports. 5% enforcement threshold is higher than the 2% model in several states. Compared yearly floor: $0 annualized. Regular full year after formation, ordinary small domestic C corporation, no taxable profit, and adjusted/apportioned net worth low enough that privilege tax calculates to $100 or less. This is the express exemption scenario, not an assumption that all loss-making companies owe $0. |
| 7 | Benefit corporation | 77Scores by areaBenefit company option Score: 20 Personal protections Score: 14 Less paperwork Score: 20 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 12 Public transparency Score: 17 | Specified charter mission, rather than compulsory broad general-benefit purpose. Optional external standard/public internet posting keeps reporting more flexible, but anyone may request annual report. Compared yearly floor: $60 annualized. Small active domestic C corporation in a regular year after its initial return, no Georgia taxable profit, and taxable net worth of $100,000 or less. A return remains required; the annual registration fee is additional. |
| 7 | Benefit corporation | 77Scores by areaBenefit company option Score: 20 Personal protections Score: 10 Less paperwork Score: 15 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 20 Public transparency Score: 20 | Specific purpose may be board/bylaw action. Entry/exit ordinary vote; no benefit-specific 2/3. Compared yearly floor: $25 annualized. Small active ordinary domestic C corporation in a regular full year with no West Virginia taxable profit after state modifications and apportionment. The separate annual-report fee and any other operating taxes remain additional. |
| 7 | Benefit corporation | 77Scores by areaBenefit company option Score: 20 Personal protections Score: 13 Less paperwork Score: 20 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 16 Public transparency Score: 9 | Annual statement due within 30 days, much earlier than 120-day model states. General-benefit mandate without mandatory third-party standard/public report. Compared yearly floor: $25 annualized. Small active ordinary domestic C corporation with zero Wisconsin taxable net income and gross receipts from all activities below $4 million: $0 franchise/income tax and no economic-development surcharge. Excludes registry/report fees and other operating taxes. |
| 10 | Benefit corporation; also social purpose corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 19 Less paperwork Score: 15 Yearly state costs and taxes Score: 9 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Public report retention floor is three years. Articles can change director/officer benefit-failure protection and weighting rules. Compared yearly floor: $150 annualized. Small active domestic C corporation in a regular year with no Florida net taxable income after state modifications, allocation/apportionment and its available exemption. This excludes the annual report and all non-income operating taxes. |
| 10 | Benefit corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 15 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | No separate independent benefit director required for a private startup. Charter can override some default benefit-duty damages protection. Compared yearly floor: $85 annualized. Small active ordinary domestic C corporation in a regular year with no Maine corporate taxable income after state modifications and apportionment. Excludes the domestic annual report and other operating taxes. |
| 10 | Benefit corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 11 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | 2% of a class enforcement floor, not any shareholder. State-filed annual benefit report plus biennial capital-based occupation tax. Compared yearly floor: $38 annualized. Small active domestic stock C corporation, paid-up capital at most $10,000 and no Nebraska taxable income: $26 occupation tax each even year, annualized to $13/year for comparison; $0 ordinary income tax. Excludes report fees and other operating taxes. |
| 10 | Benefit corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 25 Less paperwork Score: 15 Yearly state costs and taxes Score: 3 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Broad default ordinary director AND officer damages rule, unlike opt-in director-only states. Mandatory annual public third-party assessment adds work compared with Delaware. Compared yearly floor: $650 annualized. Ordinary domestic corporation, regular renewal year, Nevada receipts below $4 million and general-business quarterly net wages no more than $50,000. Includes $500 business license additional to registry list fees; excludes variable taxes and local licenses. Evidence qualifications (1)No quantified comparison of litigation outcomes or company-specific taxes. |
| 10 | Benefit corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 22 Less paperwork Score: 11 Yearly state costs and taxes Score: 9 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Both directors and officers eligible for ordinary charter exculpation. Missed benefit reporting has dissolution consequences; court mission finding can revoke benefit status. Compared yearly floor: $135 annualized. Small active domestic C corporation in a regular 2026 period, no taxable profit, gross business income no more than $109,000, and both gross receipts and enterprise-value base no more than $298,000. Merely having no profit is insufficient to exclude BET. |
| 10 | Public benefit corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 14 Less paperwork Score: 23 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 6 | Biennial shareholder-only report default. Third-party standard/certification not required. Compared yearly floor: $0 annualized. Small active ordinary domestic C corporation with annualized total revenue from its entire business, including any required combined group, at or below $2,650,000 for its 2026/2027 report: $0 franchise tax. PIR/OIR remains required. Excludes other operating taxes and fees. |
| 10 | Benefit corporation | 76Scores by areaBenefit company option Score: 20 Personal protections Score: 19 Less paperwork Score: 15 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 6 Public transparency Score: 20 | Unanimous conversion-in vote; easier ordinary-amendment route out. Automatic director/officer statutory cap, with charter option for zero, is distinct from mandatory charter adoption in most states. Compared yearly floor: $100 annualized. Small active ordinary domestic C corporation in a regular full year with no Virginia taxable profit after modifications and apportionment. The SCC annual registration fee and local operating taxes remain separate. Evidence qualifications (1)Virginia ordinary exculpation is limited to corporation/shareholder claims; it does not supply a general regulatory or third-party shield. |
| 17 | Public benefit corporation | 75Scores by areaBenefit company option Score: 20 Personal protections Score: 8 Less paperwork Score: 15 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 20 Public transparency Score: 20 | Specific charter mission and explicit balancing differ from broad general-benefit model duties. Colorado annual public third-party-standard assessment is stricter than Delaware’s default reporting. Compared yearly floor: $25 annualized. Ordinary domestic C corporation operating in Colorado with no Colorado taxable net income. No fixed corporate-income minimum added; registry fees and all variable operating taxes excluded. The rate is not used to estimate tax. |
| 17 | Sustainable business corporation | 75Scores by areaBenefit company option Score: 20 Personal protections Score: 14 Less paperwork Score: 12 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Every sustainable business corporation needs an independent benefit director, including a small private company. Public commenters receive formal responses in the final annual report; names of 5% holders are disclosed. Compared yearly floor: $12.5 annualized. Fixed yearly baseline only, ordinary domestic C corporation. Variable GET on business receipts can be positive even with zero profit and is excluded from this figure; no annual GET-license renewal charge is included. The $20 registration fee is one-time. |
| 17 | Public benefit corporation | 75Scores by areaBenefit company option Score: 20 Personal protections Score: 8 Less paperwork Score: 15 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 20 Public transparency Score: 20 | Three-interest balancing combined with mandatory public annual third-party report; not the same reporting regime as Delaware/Texas. 2023 protection is default unless charter opts out. Compared yearly floor: $45 annualized. Small active ordinary domestic C corporation operating in Kansas with no Kansas taxable income after adjustments and apportionment: $0 ordinary income tax and no franchise minimum. Excludes information-report fees and other operating taxes. Evidence qualifications (1)Genuine statutory timing mismatch: annual benefit-statement duty in 17-72a06(b) coexists with subsection (c) referring to the now-biennial information-report schedule in 17-7503; no specific intervening-year date is supplied. |
| 17 | Benefit corporation | 75Scores by areaBenefit company option Score: 20 Personal protections Score: 20 Less paperwork Score: 12 Yearly state costs and taxes Score: 9 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Annual benefit report is voted on by shareholders; mission goals also require approval. Reckless harm/criminal acts remain outside ordinary charter protection. Compared yearly floor: $160 annualized. Small active ordinary domestic C corporation in a regular full year, Vermont gross receipts below $500,000, no taxable profit and no small-farm or other special classification. Annual registry and benefit-report fees are separate. Evidence qualifications (1)Entity-specific tax and boardless-corporation independence qualifications not modeled beyond statutory thresholds. |
| 21 | Benefit corporation | 74Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 12 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | All corporations require a benefit director, unlike optional/private-exempt models. Public report discloses known/record 5% owners. Compared yearly floor: $75 annualized. Small active domestic C corporation with no Illinois net taxable income and allocated paid-in capital at or below $10 million: annual franchise liability is within the $10,000 exemption and income/replacement tax is $0. Excludes report fees and capital-change transactions. Evidence qualifications (1)Franchise-tax amount above exemption requires entity-specific capital/allocation calculation. |
| 21 | Benefit corporation | 74Scores by areaBenefit company option Score: 20 Personal protections Score: 8 Less paperwork Score: 20 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 17 | Optional third-party standard despite mandatory public annual reporting. 5%/$5m enforcement threshold exceeds 2%/$2m PBC models. Compared yearly floor: $30 annualized. Small active ordinary domestic C corporation operating in Iowa with no Iowa taxable income after state adjustments: $0 ordinary income tax and no separate general franchise/capital minimum. This does not include registry fees or other operating taxes. |
| 21 | Benefit corporation | 74Scores by areaBenefit company option Score: 20 Personal protections Score: 11 Less paperwork Score: 25 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 3 | 25% voting-share derivative threshold differs sharply from 2% model thresholds. No default annual public benefit report or third-party assessment. Compared yearly floor: $0 annualized. Small active ordinary domestic C corporation with Ohio taxable gross receipts, including any required CAT group, at or below $6 million: $0 CAT and no former franchise/annual-minimum charge. This excludes local income taxes, report fees, and other operating taxes. |
| 21 | Benefit company: corporation or LLC | 74Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 15 Yearly state costs and taxes Score: 6 Becoming a benefit company and changing back Score: 20 Public transparency Score: 20 | Ordinary new private-company benefit votes use majority rather than model two-thirds every class. Any shareholder has benefit enforcement standing; no automatic parent-owner standing. Compared yearly floor: $250 annualized. Ordinary domestic C corporation actually doing business in Oregon, excise filer, Oregon sales below $500,000, no taxable profit. Includes $150 minimum; CAT below its payment threshold, registry fees and variable taxes excluded. |
| 25 | Benefit corporation | 72Scores by areaBenefit company option Score: 20 Personal protections Score: 19 Less paperwork Score: 8 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 4 Public transparency Score: 20 | 90% entry/exit threshold exceeds common 2/3. Independent benefit director mandatory. Compared yearly floor: $26 annualized. Small active ordinary domestic C corporation operating in Indiana with no Indiana adjusted gross income subject to tax after state adjustments: $0 ordinary corporate tax and no separate general franchise/capital minimum. Excludes report and operating taxes. |
| 25 | Public benefit corporation: general or specific | 72Scores by areaBenefit company option Score: 20 Personal protections Score: 12 Less paperwork Score: 11 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | General-benefit corporations require a third-party assessment standard; specific-benefit corporations do not. Both variants file annual benefit reports with the state. State report and revocation consequence; retaining benefit name after status ends can automatically expire corporation. Compared yearly floor: $35 annualized. Small active ordinary domestic C corporation with Minnesota property plus payroll plus sales/receipts below $1,280,000 in 2026, zero Minnesota taxable income, and no taxable AMT base: $0 regular tax, AMT, and minimum fee. Excludes report and operating taxes. |
| 27 | Public benefit corporation | 71Scores by areaBenefit company option Score: 20 Personal protections Score: 17 Less paperwork Score: 20 Yearly state costs and taxes Score: 9 Becoming a benefit company and changing back Score: 8 Public transparency Score: 9 | 90% entry versus 2/3 exit. Automatic ordinary director damages threshold includes clear-and-convincing proof. Compared yearly floor: $190 annualized. Small active domestic C corporation in a regular year, no taxable profit and total gross receipts or gross profits at or below $3 million, with no special statutory exemption or incentive credit assumed. Annual registry reporting is separate. Evidence qualifications (1)LLET requires entity/nexus-specific calculation; minimum is not a universal all-in annual cost. |
| 28 | For-profit benefit corporation | 70Scores by areaBenefit company option Score: 20 Personal protections Score: 10 Less paperwork Score: 20 Yearly state costs and taxes Score: 9 Becoming a benefit company and changing back Score: 12 Public transparency Score: 17 | Consideration plus no permanent constituency priority, not Delaware balance text. Mandatory public annual narrative, third-party optional. Compared yearly floor: $120 annualized. Small active nonexempt domestic C corporation with apportioned net worth at or below $40,000, no Tennessee taxable net earnings, and no standard business-license tax obligation: $100 franchise minimum. Below-$100,000 receipts remove ordinary business tax when correctly licensed; conditional $15 county/city minimal-activity license fees are outside this state-tax-only amount. |
| 29–30 | Benefit corporation | 69Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 11 Yearly state costs and taxes Score: 9 Becoming a benefit company and changing back Score: 10 Public transparency Score: 20 | Three-quarter entry vote differs from the usual two-thirds model. Benefit report is filed with the commission as well as shared publicly. Compared yearly floor: $105 annualized. Ordinary domestic C corporation actually operating in Arizona, required to file, no taxable net profit, no special exemption or credit assumption. Includes $50 corporate minimum; excludes registry fees and variable operating taxes. |
| 29–30 | Public benefit corporation | 69Scores by areaBenefit company option Score: 20 Personal protections Score: 12 Less paperwork Score: 23 Yearly state costs and taxes Score: 6 Becoming a benefit company and changing back Score: 20 Public transparency Score: 6 | Biennial private shareholder reporting contrasts with most annual public-report states. Eligible officer charter protection is narrower than director protection. Compared yearly floor: $300 annualized. Active domestic general-services C corporation operating at one Delaware location in a regular year, at the $175 authorized-shares franchise minimum plus the $75 annual DOR business license; no taxable profit and receipts within the category's gross-receipts exclusion. Add the separate $50 registry report only once. If comparing formation-only companies operating entirely elsewhere, use $175 instead. Evidence qualifications (1)Financing suitability, court outcomes, actual taxes and operating-state registration require facts specific to the company. |
| 31–32 | Benefit corporation designation | 68Scores by areaBenefit company option Score: 20 Personal protections Score: 8 Less paperwork Score: 15 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Explicit general-benefit test scales to company size and nature. Statutory amendments use voting shares and entitled classes, rather than automatic every-class votes. Compared yearly floor: $62.5 annualized. Ordinary domestic C corporation operating in New Mexico, no taxable profit. Includes $50 franchise charge only. Variable GRT on receipts may be positive despite no profit and is excluded, along with registry and other operating taxes. |
| 32–33 | Benefit corporation | 67Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 11 Yearly state costs and taxes Score: 6 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Separate $70 state benefit-report filing fee. Any shareholder can bring a benefit derivative claim; no 2% floor. Compared yearly floor: $220 annualized. Small active domestic stock C corporation operating in Arkansas, no Arkansas taxable profit, and Arkansas-attributed capital stock of $50,000 or less: the $150 franchise minimum applies. Tax only, excluding report and local/industry fees. |
| 32–33 | Benefit corporation; also social purpose corporation | 67Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 15 Yearly state costs and taxes Score: 3 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Any shareholder can enforce benefit duties, and unjustified noncompliance may shift plaintiff legal fees. Annual report discloses 5% holders, a privacy consideration. Compared yearly floor: $825 annualized. Regular operating year after the first taxable year, domestic ordinary C corporation, no taxable profit and no special exemption. Includes $800 franchise minimum; excludes registry and variable taxes. |
| 32–33 | Benefit corporation | 67Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 15 Yearly state costs and taxes Score: 3 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Optional legacy lock materially restricts future sale, exit and dissolution distributions. 5% direct-company and 10% parent standing differ from 2%/5% states. Compared yearly floor: $400 annualized. Small active domestic C corporation, regular full year after the first, no taxable profit and sufficiently low capital that the capital-base calculation does not exceed $250. No combined group or special classification is assumed. Evidence qualifications (1)Entity-specific tax nexus, exemptions and current capital-base computation not modeled. |
| 32–33 | Benefit corporation | 67Scores by areaBenefit company option Score: 20 Personal protections Score: 10 Less paperwork Score: 8 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | A small private company lacks the ordinary charter exculpation available to larger/listed companies. Independent benefit director required; any qualifying shareholder can enforce. Compared yearly floor: $35 annualized. Small active domestic C corporation in a regular full year after formation, no taxable profit and capital/paid-in-surplus license computation no greater than $25. Do not add the one-time initial CL-1 fee again; annual benefit-report fees are separate. Evidence qualifications (2)Formation §33-38-200 and SOS practice require a specific mission, while purpose §33-38-300(B) uses optional language; this wording conflict should be preserved. Size thresholds materially qualify director-exculpation eligibility; it is unavailable to an ordinary small startup. |
| 32–33 | Social purpose corporation | 67Scores by areaBenefit company option Score: 12 Personal protections Score: 14 Less paperwork Score: 20 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 12 Public transparency Score: 14 | Purpose consideration is permissive unless articles strengthen it. Annual public reporting without a mandatory assessment standard. Compared yearly floor: $70 annualized. Fixed yearly baseline only, ordinary domestic corporation. Variable B&O is excluded; the small-business credit may eliminate it at sufficiently low activity, depending on classification and reporting period. State/city license endorsements, registry charges and sales/payroll taxes are excluded. Evidence qualifications (1)Actual Washington B&O and other operating taxes are outside this model. |
| 37–38 | Benefit corporation | 66Scores by areaBenefit company option Score: 20 Personal protections Score: 12 Less paperwork Score: 15 Yearly state costs and taxes Score: 6 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Both directors and officers can receive broad ordinary charter protection, with deliberate-dishonesty and improper-benefit exceptions. Ordinary amendment vote can be reduced to majority; no automatic two-thirds vote for every nonvoting class. Compared yearly floor: $300 annualized. Small active domestic C corporation in a regular year with no Maryland taxable income after state modifications and apportionment. Form 500 remains required. SDAT annual-report and personal-property costs are excluded and must be evaluated separately. |
| 38–39 | Benefit corporation | 65Scores by areaBenefit company option Score: 20 Personal protections Score: 20 Less paperwork Score: 8 Yearly state costs and taxes Score: 3 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Independent benefit director required for private as well as public corporations. Any qualifying shareholder may enforce, but parent-equity standing is 10%. Compared yearly floor: $645 annualized. Small active domestic separate C corporation in a regular year, New Jersey gross receipts under $100,000, no taxable profit and no affiliated/controlled group with $5 million payroll. The additional installment on a low-tax return is a prepayment against the following period, not a second annual tax. Evidence qualifications (2)Full benefit text read in official enactment; current official 2026 amendment index still lists Chapter 18 as 2011 c.30 with no amendments, but dynamic consolidated chapter pages could not be retrieved in full. The public DORES portal supports benefit corporations; its entity-specific benefit-report payment/upload screen cannot be inspected without an actual entity lookup. The $70 amount is expressly statutory; checkout processing charges are excluded. |
| 28–39 | Benefit corporation | 64–70Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 11 Yearly state costs and taxes Score: 3–9 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Articles can increase derivative benefit enforcement ownership requirements. 2025 ordinary exculpation can be adopted through approved bylaws/resolution. Compared yearly floor: Utah’s separate benefit-report price has a publication mismatch. Ordinary domestic C corporation, regular operating year, no Utah taxable profit and no special statutory exemption. Includes $100 annual minimum; registry fees and variable taxes excluded. Evidence qualifications (1)The Division statute requires a benefit-report fee, but neither the FY2027 legislative approved-fee list nor current agency schedule names a separate benefit-report price. The report is uploaded in the ordinary renewal process; a distinct price cannot be truthfully stated from these publications. |
| 39–40 | Benefit corporation | 64Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 11 Yearly state costs and taxes Score: 3 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Combined state-report fee prevents double counting ordinary plus benefit filing. Charter can override default benefit-duty damages protection. Compared yearly floor: $460 annualized. Small active ordinary domestic C corporation in a regular full year with no taxable profit and no special exemption. The separate annual registry report is additional. Evidence qualifications (1)Entity-specific tax nexus/exemptions not modeled. |
| 41 | Benefit corporation | 61Scores by areaBenefit company option Score: 20 Personal protections Score: 16 Less paperwork Score: 8 Yearly state costs and taxes Score: 3 Becoming a benefit company and changing back Score: 12 Public transparency Score: 20 | Independent benefit director is required even for an ordinary private startup. Any qualifying shareholder can enforce mission; no 2% or 5% direct-company threshold. Compared yearly floor: $656 annualized. Small active ordinary domestic C corporation, regular full year, no taxable profit and a property/net-worth measure low enough that combined excise stays at the $456 minimum. Annual registry reporting is separate. |
| 41 | Benefit corporation | 61Scores by areaBenefit company option Score: 20 Personal protections Score: 6 Less paperwork Score: 11 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 8 Public transparency Score: 20 | Higher 75% status-change vote. General mission legally controls inconsistent other purposes. Compared yearly floor: $89.5 annualized. Small active ordinary domestic C corporation in a regular year, New York receipts no more than $100,000, no taxable profit, qualifies for the small-business capital-base exemption or has capital tax no greater than $25, and operates outside the MCTD and New York City. Special emerging-technology status is not assumed. |
| 43 | Proposed benefit corporation; not enacted | 21Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in charter limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §551 and intentional criminal acts. Officers do not receive this §209 charter protection merely by holding office. Domestic corporation annual report $25. Compared yearly floor: $25 annualized. Small active ordinary domestic C corporation under the standard CIT regime, Michigan apportioned/allocated gross receipts below $350,000, and no Michigan taxable profit: $0 CIT. Excludes registry fees, legacy MBT elections, financial/insurance regimes, and other operating taxes. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 43 | No dedicated for-profit benefit form identified | 21Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §79-4-8.33 and intentional criminal-law violations. Officer indemnification is a separate mechanism; this articles provision does not grant officer exculpation. October 2024 official fee schedule: corporate annual report $25. Compared yearly floor: $50 annualized. Small active domestic C corporation in a regular 2026 tax year, no taxable profit and a capital/property computation at or below the $25 franchise minimum. Annual registry reporting is separate. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 43 | No dedicated for-profit benefit form identified | 21Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in charter limitation; exceptions include loyalty, subjective bad faith, misconduct, knowing illegality, unlawful distributions and improper benefit. Particularized pleading and a discovery stay pending dismissal review apply. Online $20 annual or $40 biennial; paper $45 or $90. Compared yearly floor: $20 annualized. Small active ordinary domestic C corporation operating in Missouri with zero Missouri taxable income after state modifications: $0 corporate income tax, with no ordinary franchise minimum. Excludes report fees and other operating taxes. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 43 | No dedicated for-profit benefit form identified | 21Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 15 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in charter limitation, subject to loyalty, bad faith, misconduct, knowing illegality, specified statutory and improper-benefit exceptions. Ordinary directors may already consider listed nonshareholder constituencies. Annual corporate report $25. Compared yearly floor: $25 annualized. Small active ordinary domestic C corporation operating in North Dakota with no North Dakota taxable income after adjustments and apportionment: $0 regular corporate tax and no separate general franchise/capital minimum. Even an applicable water's-edge surtax has a zero taxable base in this scenario. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 47 | No dedicated for-profit benefit form identified | 18Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in charter limitation; exceptions include loyalty, bad faith, intentional misconduct, knowing illegality, negligent/wilful unlawful dividends or repurchases and improper benefit. Domestic $100 biennial = $50 annualized; business license is additional. Compared yearly floor: $100 annualized. Ordinary domestic C corporation operating a general business in Alaska, one business name, regular license renewal year. Includes $50 state business license only; excludes registry charges and income, alternative minimum, payroll, property and local taxes. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 47 | Proposed public benefit corporation; not enacted | 18Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in articles limit for monetary claims by the corporation or shareholders. Exceptions: unentitled financial benefit, intentional harm, unlawful distributions under §47-1A-833 and intentional criminal-law violations. Officer standards and indemnification remain separate. Current agency table: $55 electronic annual report, $70 paper; older $50/$65 instructions conflict. Compared yearly floor: $55 annualized. Small active ordinary domestic civic/technology stock C corporation operating in South Dakota, outside bank/regulated-industry regimes: $0 general corporate income or franchise/capital minimum. Excludes report, sales/use, employment, property, and local charges. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 47 | No dedicated for-profit benefit form identified | 18Scores by areaBenefit company option Score: 0 Personal protections Score: 6 Less paperwork Score: 0 Yearly state costs and taxes Score: 12 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | Director-only opt-in charter monetary limitation; exceptions include improper financial benefit, intentional harm, unlawful distributions and intentional criminal-law violations. Ordinary shareholder limited liability is separate. Annual combined report/license tax: greater of $60 or .0002 of assets located and employed in Wyoming; not two separate charges. Compared yearly floor: $60 annualized. Ordinary domestic corporation with Wyoming assets no more than $300,000. $60 license tax is already counted in regularReport, so the additional tax component is $0. Variable asset excess, payment convenience fees and other operating taxes excluded. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
| 50 | No dedicated for-profit benefit form identified | 16Scores by areaBenefit company option Score: 0 Personal protections Score: 10 Less paperwork Score: 0 Yearly state costs and taxes Score: 6 Becoming a benefit company and changing back Score: 0 Public transparency Score: 0 | 2025-amended opt-in charter provision covers directors and eligible officers. Officer corporation/derivative actions excluded; exceptions include known conflict with company interests, improper benefit and director distributions. Statutory electronic annual report $18, paper $25; portal transaction fees additional. Compared yearly floor: $218 annualized. Small active domestic C corporation in a regular year, no taxable profit and sufficiently low franchise net-worth base that the calculation remains $200. Registry reporting and other taxes are excluded. Evidence qualifications (1)Ordinary charter protections concern specified internal monetary claims; personally committed wrongs and liabilities imposed by other statutes remain separate. |
YES, STATE TAXES CAN APPLY
A for-profit benefit company does not automatically become tax-exempt. Registration charges and operating taxes answer different questions. For-profit PBC definition ↗ · IRS exemption requirements ↗
Some states charge franchise taxes, minimum taxes or a business license even when profit is low or zero. The cost score now includes the identified yearly minimum charge and report filings, using this shared scenario:
A small, active, private stock C corporation, after its first tax year, using the lowest capital/receipts/share-count tier, no taxable income or taxable alternative-minimum base, and ordinary online filings where available. It operates in the state being compared. Yearly costs include registry reports and the identified minimum state tax/license charge; multi-year charges are annualized. Variable income, receipts, sales, payroll and local taxes, agents and one-time formation costs are additional.
A $0 minimum means no additional fixed charge in this scenario. It does not mean the business owes no tax.
An out-of-state address on the charter does not erase tax where the business operates. Employees, offices and sales can create obligations in another state. Registering there may add another filing fee and registered agent. SBA multi-state registration guidance ↗
For example, Delaware says companies with only a statutory office and no business there are exempt from its corporate income tax. California generally taxes corporations incorporated, registered or doing business there, with an $800 minimum and specified exceptions.
Nevada, Ohio, Texas and Washington have receipts or margin-based business taxes with their own thresholds and rules. Hawaii also taxes gross business receipts. A company can owe some of these taxes while making no profit.
Each state record now explains its corporate income regime, other recurring taxes, the minimum used in the score, and when business activity changes the answer. Federal taxes remain separate.
Variable taxes are shown as real rules, rather than assigned a universal “low-tax” bonus that assumes your people, profit and customers are in the filing state.
WHAT ELSE CHANGES THE CHOICE?
Entry votes and minimum recurring taxes have been added to the score. These other issues need a company-specific decision; a generic point award would hide the tradeoff.
Compare the extra registration, annual filings and agents required when forming elsewhere. For a small company, two sets of obligations can outweigh a distant state’s cheaper headline fee.
Ask prospective investors which charter, share classes and forum they will accept. Corporate adoption and specialist courts can matter, but they do not establish a guaranteed valuation or lawsuit result.
Easier entry helps adoption. Easier exit makes future change simpler but can weaken mission permanence. Connecticut’s optional legacy lock and Minnesota’s reentry restrictions need separate attention.
Ownership thresholds, direct versus company claims, monetary versus court-ordered remedies, and fee-shifting differ. Read the actual claimant and remedy rule; a higher ownership threshold does not make every claim disappear.
Some benefit reports identify major owners or require public posting. That is a governance and privacy choice. Private B Corp certification is a separate service and is not automatically required by a benefit statute.
Charter protections must be adopted correctly. Formation and conversion fees, appraisal rights, D&O insurance, payroll/sales taxes, local licenses and campaign-law compliance add costs or obligations beyond this recurring minimum.
Group one provision at a time
No two states are asserted to have identical laws. A group below shares only the displayed attribute. Different exceptions, timing, remedies and vote denominators remain in each state’s record.
Grouping is a normalized comparison of the named attribute, not a claim of identical statutory language. Variant-specific and conditional rules stay in their individual records. Fee differences, charter options, claimants, exceptions, status-change transactions and special procedures are not erased by grouping.
08 / Show your work
Legal claims link to government statutes, filing guidance, or bill records. Follow each provision to statutes, enacted amendments, agency fee schedules and filing instructions. Dates and source scope appear in the records.
How to read this research. Reviewed October 11, 2026. The linked compilations may have different update dates. Selected statutory dimensions are reviewed individually for all 50 states. The comparison identifies the reviewed legal text, enacted amendments, variant-specific rules and genuine publication mismatches. Verify amendments and filing requirements before acting. This is educational research, not a substitute for counsel reviewing your actual operations and charter.
Download the 50-state data ↓Map geometry comes from the open-source US Atlas project, derived from U.S. Census cartographic boundaries, using TopoJSON Client. Boundaries visualize states; they are not a legal map of jurisdiction. US Atlas license.
The recurring-fee calculator covers Delaware, Nevada and Wyoming only. It shows statutory minimums plus your inputs. Availability does not confirm a proposed company name, foreign qualification, tax treatment, certification, or that a business has been formed.
Primary-source review: October 11, 2026. Records identify consolidated statutes or enacted text and amendment checks, with dates and source-specific qualifications. Minimum yearly state taxes are included in the stated cost scenario. Variable taxes, local charges and registered-agent services remain company-specific.