So, you’re a social entrepreneur in Texas with big dreams of making a difference. You want to generate profit and have a positive impact on the world. But when it comes to choosing the right legal structure for your business, things can get confusing.
Two popular options often pop up: the Texas Social Purpose Corporation (SPC) and the Public Benefit Corporation (PBC). Both are excellent choices for businesses that want to do good while doing well, but there are some key differences to consider.
How are they similar?
- Hybrid For-Profit: Both SPCs and PBCs are for-profit entities, meaning you can generate profit for your shareholders while pursuing your social mission.
Social Impact: Both are legally required to consider the impact of their decisions on society and the environment. - Fees and Operations: Both have the same filing fees ($300) and operate similarly in many ways.
How are they different?
One difference is Texas PBCs have a biannual social impact report, while SPCs may, but don’t have to report.
Want to learn more? Check out my Foundational Course for entrepreneurs wanting to start a purpose-driven business.
