Two New Subtypes of Corporations in California*

As of January 1, 2012, there are two new subtypes of stock corporations in California — a “flexible purpose corporation” and a “benefit corporation.” The new corporation subtypes allow entrepreneurs and investors to organize stock corporations that can pursue both economic and social objectives. The new stock corporation subtypes differ from traditional for profit corporations that are organized to pursue profit and nonprofit corporations that must be used solely to promote social benefits. 

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*Update provided by Roman Plachy of BridgehouseLaw Atlanta.