Becoming A Benefit Corporation Is Complicated: This Startup Wants To Help
Summary
When Anand Kulkarni was birthing his new startup, Crowdbotics , nine months ago, he knew it had to be a public benefit corporation (PBC). Benefit corporation statutes vary in strength and force, but they generally allow managers to take account of a wider array of stakeholders than standard companies, including workers, suppliers, local communities, and the environment. C Corp managers are legally obliged to maximize earnings for owners, and sometimes, as Kulkarni says, that imperative can get in the way of other priorities. “We want to say that the reason this company exists is not only to deliver strong returns to the market, but also to create value for society or stakeholders, like our developers who are not typically part of the equation.” Clerky’s software and templates allow startups to do the full PBC incorporation process online. It standardizes knowledge about the best way to file, as opposed to going to a lawyer, for whom PBCs may be a new thing, says Darby Wong, cofounder and CEO of Clerky.
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