Articles of Incorporation (Benefit Corporation) - Utah

Articles of Incorporation (Benefit Corporation) is a legal document that was released by the Utah Department of Commerce - a government authority operating within Utah.

FAQ

Q: What are the Articles of Incorporation?A: The Articles of Incorporation are legal documents that establish a corporation as a separate legal entity.

Q: What is a Benefit Corporation?A: A Benefit Corporation is a type of corporation that is required to pursue not only profit but also public benefit.

Q: Why would a corporation choose to be a Benefit Corporation?A: A corporation may choose to become a Benefit Corporation if they want to emphasize social and environmental goals alongside financial goals.

Q: How do you create a Benefit Corporation in Utah?A: To create a Benefit Corporation in Utah, you must file Articles of Incorporation with the Utah Division of Corporations.

Q: What information is required in the Articles of Incorporation for a Benefit Corporation?A: The Articles of Incorporation for a Benefit Corporation in Utah need to include the corporate name, purpose, period of duration, and statement of public benefit.

Q: What is a statement of public benefit?A: A statement of public benefit is a provision in the Articles of Incorporation that declares the specific public benefit or benefits the corporation will promote and pursue.

Q: What is the difference between a Benefit Corporation and a traditional corporation?A: The main difference is that a Benefit Corporation is legally obligated to consider the impact of its decisions on both shareholders and stakeholders, such as employees, customers, and the environment.

Q: Can an existing corporation convert to a Benefit Corporation?A: Yes, an existing corporation can convert to a Benefit Corporation by amending its Articles of Incorporation.

Q: What are the advantages of being a Benefit Corporation?A: Some advantages include public recognition as a socially and environmentally responsible business, protection for directors and officers who prioritize the public benefit, and access to impact investment opportunities.

Q: Are there any reporting requirements for Benefit Corporations in Utah?A: Yes, Benefit Corporations in Utah are required to file an annual report that includes a statement of the corporation's public benefit activities.