The following three steps are essential if you want to become a B corporation:
Meet the legal requirements.
- These requirements vary based on the state that you’re in and your choice of entity that you’re opting into: LLC, a traditional corporation or a benefit corporation.
- If you’re bringing in outside investors, you’ll need to get your shareholders’ approval before you make this transition.
Take the B corporation impact assessment.
- This is a set of questions and metrics that analyze your business regarding: governance, how you will treat your employees, how you will interact with your local community, how you will impact the environment and what kind of business model you are creating.
- It’s crucial that you take this assessment from the outset so you can understand how your supplier selection practice is, how your board of director practice is and how your application and retention policies work.
- If you get to the point where you become certified after six months of revenue, you may no longer be operating in ways that comply with the certification and you will no longer qualify.
Meet the revenue requirement.
- Unless you have six months of historical revenue, you won’t be able to become an officially certified B corporation.
- In this regard, it’s important to make your first sale as soon as possible so you can start this six month revenue requirement.
If you follow these three steps, you will be well on your way to creating your B corporation.
Dirk Sampselle, CEO of B Revolution, Inc., offers a step-by-step guide to forming a B Corporation.