INDIANAPOLIS (AP) - Indiana businesses will soon be able to explicitly outline a philanthropic or social mission in paperwork that they file with the Secretary of State’s Office.
Beginning Jan. 1, businesses will be able to register as benefit corporations. Secretary of State Connie Lawson says the new designation offers an alternative to companies that want to incorporate a social mission - and not just maximizing payments to shareholders - into their business model. Traditional corporate law dictates that company heads place the importance of profits above all else.
Unlike traditional nonprofit organizations, however, a benefit corporation still can make money.
Two companies filed paperwork with her office Monday to become benefit corporations.
Copyright © 2021 The Washington Times, LLC.