Social Purpose CORPORATION [previously: Flexible purpose corporation]

SPC Attorney, Social purpose corporation attorney, form a social purpose corporation, Flexible purpose corporation attorney

Drason law firm assist in forming and incorporating Social Purpose Corporations. We have experience counseling clients on whether a Social Purpose Corporation is right for them and their business endeavors. If you are looking for more information on a Social Purpose Corporation or are looking to incorporate a Social Purpose Corporation-contact us today. We look forward to assisting you. 

What is a California Social Purpose Corporation?

Social Purpose Corporation (SPC) was previously known as Flexible Purpose Corporation. On September 27th, 2014 Governor Brown signed into law an amendment to the Corporate Flexibility Act of 2011. The new name went into effect on January 1st, 2015. This name change is an effort to reflect the intended purpose of this corporate structure.

Social Purpose Corporation was designed to provide individuals and companies with flexibility to pursue charitable and public purposes. Social Purpose Corporations are an alternative to L3C's (Low-Profit Limited Liability Company); this is because L3C's are not recognized in California. 

What corporate form does a Social Purpose Corporation identify with closely?

Social Purpose Corporation closely reflects a C-corporation as both corporations are treated the same for tax purposes, the corporate laws and regulations are also the same; the rules regarding issuing shares. 

What is different about a Social Purpose Corporation?

1. A Social Purpose Corporation has to clearly state that it intends to pursue a public or social purpose. This public purpose or nonprofit must be aligned and allowed under the California Law
2. A Social Purpose corporation can be used to promote short-term or long-term benefits (or beneficial effects from the SPCs activities) to its suppliers, community, society in general, the environment and even its own employees. 
3. A Social Purpose Corporation is also required under California law to state that it is a Social Purpose Corporation in the Articles of Incorporation.
4. An Social Purpose Corporation is required to prepare annual reports with Special Purpose Management Discussion and Analysis. 

• These annual reports include financial statements and a Management Discussion and Analysis (MD&A) of the Social Purpose Corporation. What does the Management Discussion and Analysis include? The Corporation must identify its objectives and reflect on the actions taken for those identified objectives and the expenses incurred by the Special Purpose Corporation to achieve those objectives. This is the key burden placed on the Special Purpose Corporation and it is a strict requirements.
• Another requirements is transparency, annual reports of the Special Purpose Corporation must be made available on the corporate website.
• Special Purpose Corporate directors have the ability to allocate resources and capital in pursuit of the purpose of the corporation without having to worry about maximizing profit and facing shareholder pressure to do so. Directors are now required to factor in the Special Purpose Corporations goals as stated in the Articles of Corporation in making their decisions.
  

California Social Purpose Corporation Attorney

Social Purpose corporation attorney

Incorporate a social purpose corporation

Need help with social purpose corporations?

Social purpose corporation consulting?

We work with clients, and seek to work with clients, in all of Northern California, including the following cities and counties: Alameda, Albany, American Canyon, Atherton, Belmont, Belvedere, Benicia, Berkeley, Brentwood, Brisbane, Burlingame, Calistoga, Campbell, Clayton, Cloverdale, Colma, Concord, Corte Madera, Cotati, Cupertino, Daly City, Danville, Dixon, Dublin, East Palo Alto, Emeryville, Foster City, Fremont, Gilroy, Half Moon Bay, Hayward, Healdsburg, Hercules, Hillsborough, Lafayette, Larkspur, Livermore, Los Altos, Los Altos Hills, Los Gatos, Martinez, Menlo Park, Mill Valley, Millbrae, Milpitas, Morgan Hill, Mountain View, Napa, Newark, Novato, Oakland, Oakley, Orinda, Pacifica, Palo Alto, Petaluma, Piedmont, Pleasant Hill, Pleasanton, Portola Valley, Redwood City, San Bruno, San Carlos, San Francisco, San Jose, San Leandro, San Mateo, San Pablo, San Rafael, San Ramon, Santa Clara, Santa Rosa, Saratoga, Sausalito, Sebastopol, Sonoma, South San Francisco, St. Helena, Suisun City, Sunnyvale, Union City, Vacaville, Vallejo, Walnut Creek, Windsor, Woodside, Alameda County, Contra Costa County, Marin County, Napa County, San Francisco County, San Mateo County, Santa Clara County.