B Corp filings begin today

New Orleans area lawmakers and business leaders gathered in Baton Rouge today to accept the first round of applications for a new type of corporation aimed at attracting venture capital to a new set of socially conscious businesses sprouting up across the state, reports New Orleans City Business. State Rep. Walt Leger, D-New Orleans, and Louisiana Secretary of State Tom Schedler got together to accept the first round of applications from startups and businesses that look to incorporate as benefit corporations, or B Corps. These for-profit companies are legally required to consider their social and environmental impact and not just the bottom line when making business decisions. Leger and representatives with the New Orleans Business Alliance spearheaded the B Corp legislation, which was approved recently and takes effect today. A business that operates as a B Corp, which has the same tax structure as a traditional S Corp, must outline a social purpose in its corporate documents, enlist an independent benefit director to oversee that purpose in action, and publish an annual report to the public detailing its social and environmental impact. Louisiana is the ninth state to pass benefit corporation legislation. Companies can also incorporate as a B Corp in Maryland, Vermont, New Jersey, Virginia, California, New York, Hawaii and South Carolina.