There’s a new type of company in town (in Washington State) – the “Social Purpose Corporation”! This new invention has some people very excited and there are some definite pros and cons to this type of corporate format.
On the one side of the corporate spectrum, we have profit corporations, which are formed for the sole purpose of maximizing shareholder profit. On the other side of the spectrum, we have non-profit corporations, which are not designed to make a profit for shareholders but rather to enrich the community in some way.
A social purpose corporation is a for-profit corporation. That means it can make money! But what sets it apart from normal C-Corps or S-Corps is that it has a “declared social purpose” beyond maximizing financial gains, such as a specific environmental or humanitarian goal, which will inform the company’s actions and daily functioning. Each SPC must issue an annual report detailing how the company is accomplishing its social purpose
For more in-depth information on social purpose corporations, you can visit the following links:
Or contact a qualified business attorney to discuss whether a social purpose corporation might be right for you and your company. Limitless Law would be happy to help you weigh the pros and cons of SPCs, give us a call at (360) 685-0145 or email us at email@example.com