According to the California Secretary of State, as of November 4, 2012, there were 79 benefit corporations and 21 flexible purpose corporations. In case you don’t remember, these are the new corporate forms that incorporate elements of a traditional for-profit corporation while also promoting the public purposes of a nonprofit. They have been available in California since January 1, 2012.
It’s unclear why benefit corporations are winning by a landslide. It may be as simple as having a better name. Or it may be because Yvon Chouinard, founder and chairman of Patagonia, was one of the first in line to set up a benefit corporation at the beginning of this year, inspiring others to follow. Either way, it will be interesting to see if the trend continues into 2013.
In the meantime, if you want to learn more about these new hybrid forms, check out our LA Lawyer article on the topic.