This content was created by MARK KOHLER. This content was uploaded by MARK KOHLER. This is a YouTube video titled "Why use a Benefit Corporation | Mark J Kohler | Tax & Legal Tip" (created March 10, 2015). It is a solo presentation by MARK KOHLER explaining benefit corporations: what they are, how filing as a benefit corporation provides third‑party verification and public accountability for charitable commitments (which can help marketing and sales), and what they do not do (they do not provide tax savings, do not inherently help raise capital, and you still must choose C vs S corp tax treatment). The clip ends with Kohler promoting his website (markjkohler.com), newsletter, radio show, and other resources.
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Hi, Mark Kohler here. Let's talk about benefit corporations and how to potentially increase your sales with unique strategy. Just this week I was talking with a client helping them design their business and they were talking about donating a portion of their sales or their net profit to charity. And they were thinking, should I be a nonprofit 501c3 or how should I structure it and should I just away so much money to charity and how do I let the public know? Well, this is oftentimes a more and more, you know, common strategy of trying to increase public awareness as to how friendly you are to the environment or some social cause. And by letting the public know you're going to donate a part of your sales or profit to charity, they may frequent your business more. Right. Well, here's the catch. How do we really know if these businesses are donating to charity and how can we be held accountable for these promises when we're trying to increase our sales? So this is where benefit corporations came about. Now let me tell you what they can't do. Benefit corporations are not going to save you taxes. They're not going to help you raise capital with your partners or owners. And you're still going to have to decide if you're going to be a C or an S corp. So for tax planning, you're going to want to watch those other videos of mine and get up to speed on structuring it to save you money. But when it comes to building sales, what you can do is follow file as a benefit corporation with the state and then you're allowing a third party to come in and verify that you really did give 5% of your net profit to charity or X percent of your sales. So by filing this special report with the state, you are telling the public, hold me accountable. I want to help the environment. I want to help some social cause. And I promise that I'm going to follow through with what I say. So that's what a benefit corporation is about. And it may be a nice thing to put on your website or your print material. So think about it and it could actually be the key to helping you increase your sales. If you thought that information was amazing and helpful. I have so much more to share with you. Please look at the links below and head to my website, markjkohler.com you can subscribe to my weekly newsletter. Check out my weekly radio show. I have my online videos for tax and legal strategies that will save you thousands of ways to learn QuickBooks with my fun videos online. And also if you enjoyed it. Please leave a comment and give it a like and follow me on YouTube. I promise that these videos will change your life. Thanks so much.
