If you're curious about this space, or looking to work in it, keep reading...
โ๏ธ Nonprofit or For-Profit?
In the simplest terms, youโd want to structure your legal entity based on where you expect your revenue to come from (yes, non-profits still need income to cover operating expenses).
If a majority of the revenue you generate will come from grants or donations, then structuring your company as a non-profit is the best route for tax and legal protection.
On the other hand, if you plan to generate revenue by engaging in economic activity, then youโll want to structure it as a for-profit entity, as a C-Corp, S-Corp, or LLC
More on corporate motives...
While the above for-profit legal designations tie their firms to serving their stakeholders (read: investors, management, founders, customers) they donโt always ensure the firm considers their externalities, or impact on the broader society.
This is where B Corps & Benefit Corporations come into play- they attempt to impart social & environmental welfare considerations into firmsโ decision-making processes
๐ Analysis Paralysis: B Corp or Benefit Corporation?
They are different
Compared to the average for-profit firm, both the B Corp certification & the Benefit Corporation legal structure introduce higher standards of accountability, transparency, and purpose for firms to follow...
"The B Corp Certification is a third-party certification administered by the non-profit B Lab, based in part on a company's verified performance on the B Impact Assessment. The benefit corporation is a legal structure for a business, like an LLC or a corporation. Benefit corporations are legally empowered to pursue positive stakeholder impact alongside profit."
โ๏ธ TL;DR
Both B Corps & Benefit Corporations are ensured to benefit society through enterprise at a minimum threshold - I wouldn't stress picking between the two.