September 30, 2014
CARSON CITY, Nev. (AP) - Companies will soon be able to organize as "benefit corporations" in the Silver State, allowing them to focus on environmental impacts as well as profits.
Nevada Gov. Brian Sandoval did a ceremonial signing of AB89 Wednesday. He officially signed the bill last month.
The new law also establishes a process for companies to restructure from traditional to benefit corporations.
Benefit corporations voluntarily assume obligations to consider environmental and social impacts alongside their profit margin. In turn, they get immunity from lawsuits for not putting profit above all else.
Under current law, focusing on concerns other than profit could land business executives in costly civil court cases.
Benefit corporations are subject to the same tax policies as their traditional counterparts. The law takes effect Jan. 1.
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