Public Benefit Corporation

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In the process of incorporating, it must be stated in the Articles of Incorporation which type of corporation is being formed. The options differ from one another primarily in stated purpose, permitted asset distribution, and level of regulation.

A public benefit corporation structure can be chosen for either a charitable or a public purpose, but may not distribute assets to members or directors of the organization, and are subject to the most extensive regulation. A public benefit corporation may be eligible for a federal tax exemption as a 501(c)(3) Tax-Exempt Organization.