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.

To form a benefit corporation or a flexible purpose corporation, customers will need to draft

free-form Articles of Incorporation. This is similar to other stock corporations that do not fit into

the simple Articles of Incorporation form that is available on the Secretary of State's website.

The filing fee is $100, the same fee as a general stock corporation.

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