Benefit Corporation - History

History

In April 2010, Maryland became the first U.S. state to pass benefit corporation legislation. As of January 2013 California, Hawaii, Illinois, Louisiana, Maryland, Massachusetts, New Jersey, New York, Pennsylvania, South Carolina, Vermont, and Virginia had all passed legislation allowing for the creation of benefit corporations. Legislation is also pending in Illinois that establishes a new type of entity called the “benefit LLC,” making available to limited liability companies the same opportunities afforded to Illinois corporations under the state’s Benefit Corporation Law. Passage of the bill would make Illinois the first state to offer a social enterprise the opportunity to be a benefit L3C.

• Maryland’s legislation was signed into law on April 13, 2010 and became effective on October 1, 2010.
• Virginia’s legislation was signed into law on March 26, 2011 and became effective on July 1, 2011.
• Vermont’s legislation was signed into law on May 19, 2010 and became effective on July 1, 2011.
• New Jersey’s legislation passed on January 10, 2011 and became effective when it was signed into law on March 1, 2011.
• Hawaii’s legislation was signed into law on July 8, 2011 and became effective upon signing.
• California’s legislation was signed into law on October 9, 2011 and became effective on January 1, 2012.
• New York’s legislation was signed into law on December 12, 2011 and became effective on February 10, 2012.
• Louisiana's legislation became law on May 31, 2012 and went into effect on August 1, 2012.
• South Carolina's legislation became law on June 6, 2012 and became effective the same day.
• Massachusetts' benefit corporation legislation became law on August 7, 2012 and became effective on December 1, 2012.
• Illinois's legislation was signed into law on August 2, 2012 and went into effect on January 1, 2013.
• Pennsylvania's legislation became law on October 24 and will become effective on January 22, 2013.
• Washington, D.C. legislation was signed by the Mayor on February 8, 2013 will go into effect after 30 days of congressional review.
• Arkansas's legislation was signed by Governor Mike Beebe on April 19, 2013 and will go into effect 90 days after sine die.