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Legal Requirement Due to Employee Size

I had a question regarding BCorps legal requirement. We are a S Corp in California with less than 50 people. I am reading on the BCorp website that non “Benefit Corporations” will be given 2 years to transition to Benefit Corporations status (or incorporate stakeholder considerations into bylaws). But a recent email from BCorp stated that companies must complete legal requirement before certifying. I would love clarification on this point.

Thank you for your help.


Best Answer

Hello,

Thank you for your question and for asking for clarifying information. Yes, the legal requirement is required of all prospective B Corporations during the application but specifically for companies with less than 50 employees this must be completed as part of the initial certification.

You can work to complete the legal requirement before the company's B Impact Assessment review has been completed and closed. Since the company is in the Evaluation Queue at the moment, now would be a great time to begin working on the legal requirement, as you'll be interacting with your assigned Analysts during the Evaluation and Verification stages and will be busier working on follow-ups to their questions. Ultimately, the company will need to complete the requirement before signing the B Corp Agreement in the Post-Verification stage, which can be seen listed alongside the other stages of the review on the Review page in your Impact Assessment account.
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Answer

Hello,

Thank you for your question and for asking for clarifying information. Yes, the legal requirement is required of all prospective B Corporations during the application but specifically for companies with less than 50 employees this must be completed as part of the initial certification.

You can work to complete the legal requirement before the company's B Impact Assessment review has been completed and closed. Since the company is in the Evaluation Queue at the moment, now would be a great time to begin working on the legal requirement, as you'll be interacting with your assigned Analysts during the Evaluation and Verification stages and will be busier working on follow-ups to their questions. Ultimately, the company will need to complete the requirement before signing the B Corp Agreement in the Post-Verification stage, which can be seen listed alongside the other stages of the review on the Review page in your Impact Assessment account.

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