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Sunday, February 5, 2012

New Corporation types

As of January 1, 2012, there are two new subtypes of stock corporations in California — a

“flexible purpose corporation” and a “benefit corporation.” The new corporation subtypes allow

entrepreneurs and investors to organize stock corporations that can pursue both economic and

social objectives. The new stock corporation subtypes differ from traditional for profit

corporations that are organized to pursue profit and nonprofit corporations that must be used

solely to promote social benefits.