A B-Corporation (B-Corp) isn’t a type of company you register with the state. It’s a certification, granted by the nonprofit B Lab, for for-profit businesses that meet its standards for social and environmental performance, accountability and transparency. So when people ask what is a B-corporation, the short answer is: a normal business that has passed an outside audit of how it treats workers, customers, suppliers, communities and the environment, and has written that commitment into its governing documents.
B Lab has been revising its certification standards, so check its current requirements before you start. The scoring and fee details below describe the system as this article was written.
B-Corp certification vs. benefit corporation: what’s the difference?
These two get mixed up constantly. One is a certification. The other is a legal structure.
| Feature | B-Corp certification | Benefit corporation |
|---|---|---|
| What it is | Third-party certification from B Lab | Legal business structure |
| How you get it | Complete the B Impact Assessment, verify, certify | Register with your state |
| Cost | Annual fee based on revenue | State filing fee only |
| Requirements | Score 80+ on the assessment, ongoing verification | Varies by state |
| Availability | Any eligible business worldwide | States with benefit corporation laws (~40 states) |
| Enforcement | B Lab standards and recertification | State law requirements |
A company can be both: a benefit corporation under state law that’s also a Certified B-Corp. Plenty of companies do both, but you don’t have to.
How does B-Corp certification work?
Everything runs through the B Impact Assessment, a questionnaire that scores your company across five areas:
| Impact area | Approximate max points | What it looks at |
|---|---|---|
| Governance | ~25 | Mission and engagement, ethics and transparency, board accountability |
| Workers | ~50 | Pay and benefits, health and safety, career development, engagement |
| Community | ~50 | Diversity, equity and inclusion, economic impact, civic engagement and giving, supply chain |
| Environment | ~50 | Environmental management, air and climate, water, land and life |
| Customers | ~25 | Customer stewardship, product impact |
To certify, you need 80 points or more out of roughly 200. The median for ordinary businesses that take the assessment is around 50, so 80 is a real bar, not a formality.
Your own answers aren’t the final word. B Lab then reviews your submission, asks for documents that back up your answers, and holds a verification call with an analyst before confirming your final score. After that you amend your governing documents to consider stakeholders, sign the B Corp declaration, and pay the annual certification fee.
Who can get certified?
You need to be a for-profit business. Nonprofits can’t certify. B Lab also expects:
- At least 12 months of operations (younger startups can pursue pending certification)
- A willingness to amend your governing documents to add stakeholder language
- Your B Impact Score published publicly
Some industries, like weapons manufacturing or fossil fuels, may face extra scrutiny or be excluded.
The legal requirement
Certification has to be backed by a legal commitment. You have two ways to do it. If your state has a benefit corporation law, you can convert to that structure. Otherwise, you amend your governing documents so directors are required to consider stakeholder interests, not just shareholder value.
That change protects directors who pick what’s good for workers or the community over short-term profit, lowers the risk of shareholder lawsuits over those choices, and makes it harder for a future owner to drop the mission.
Recertification
Certification lasts three years. To keep it, you retake the updated assessment, meet whatever the current standards are (they change over time), and keep your score at 80 or above. If you fail, you lose the certification and the logo. You can fix the gaps and try again later.
How much does B-Corp certification cost?
B Lab charges an annual fee based on revenue:
| Annual revenue | Annual fee |
|---|---|
| $0 – $149,999 | $1,000 |
| $150,000 – $1.99M | $1,000 – $2,500 |
| $2M – $4.99M | $2,500 – $5,000 |
| $5M – $9.99M | $5,000 – $10,000 |
| $10M – $49.99M | $10,000 – $25,000 |
| $50M – $99.99M | $25,000 – $35,000 |
| $100M – $249.99M | $35,000 – $50,000 |
| $250M+ | $50,000+ |
There’s also a submission fee when you send your assessment in for review.
The fee is rarely the biggest cost for a small company. Lawyers to amend your documents, a consultant if you hire one, the staff hours spent on the assessment, and whatever you change to reach 80 points can easily add up to more than the fee itself. Budget for those before you commit.
What do you get out of it?
The honest answer depends on who your customers, employees and investors are.
Customers. The logo is a shortcut that tells buyers your claims have been checked by someone else. That’s worth the most in consumer markets where shoppers already look for it.
Hiring. If you’re recruiting people who care about social impact, certification helps you stand out, and clear values tend to help with retention.
Investors. Impact investment funds often prioritize certified B-Corps. Certification also makes their due diligence easier and supports ESG reporting.
The network. You join a community of over 8,000 certified companies, which is useful for finding suppliers, partners and people who’ve already been through the process.
There’s a less obvious benefit too. The assessment itself shows you where your policies are thin. Even if you never certify, you come away with a useful to-do list.
Well-known certified companies have included Patagonia, Ben & Jerry’s, Seventh Generation, King Arthur Baking, Warby Parker and Amalgamated Bank. Certification can lapse, so check a company’s current status before citing it as an example.
How do you get B-Corp certified, step by step?
- Take the free B Impact Assessment at bcorporation.net. Expect 1-3 hours for a first pass and longer to document everything properly. You can save and come back.
- Review your score against the 80-point threshold, including the breakdown by impact area.
- If you’re under 80, put the recommended practices in place, document them, and retake the relevant sections.
- Once you’re at 80+, submit for verification: pay the submission fee, provide documents and schedule the verification call.
- Amend your governing documents with stakeholder language, or convert to a benefit corporation.
- Pay the annual fee once you’re approved. You’ll get the B-Corp logo and can announce your certification.
The whole process typically takes 6-12 months. Many companies score 50-70 on their first try, so closing that gap is usually where the time goes.
Our advice: start collecting documentation the day you start the assessment. B Lab wants evidence, which means written policies, employee data, environmental metrics and records of community involvement. If you wait until verification to hunt for it, you’re adding time to a process that already takes months.
Is B-Corp certification right for your business?
It’s a good fit if a social or environmental mission is central to what you do, your customers care about it, and you can spare the time and money for a multi-month process plus recertification every three years.
It’s probably not worth it if profit is your only goal, you’re not comfortable publishing your score, or the full cost would strain a small budget. In that last case, take the free assessment anyway and use it as a checklist. You can certify later.
How does it compare with other certifications?
| Certification | Focus | Rigor | Cost | Recognition |
|---|---|---|---|---|
| B-Corp | Overall business impact | High | $$ | High |
| Fair Trade | Supply chain ethics | Medium | $ | Medium |
| LEED | Building sustainability | High | $$$ | High |
| Organic | Product standards | Medium | $$ | High |
| 1% for Planet | Environmental giving | Low | $ | Medium |
The difference is scope. The others certify a product, a building or a giving pledge. B-Corp looks at the whole company.
Frequently asked questions
How long does B-Corp certification take?
Usually 6-12 months from starting the assessment to final certification. It depends on your score, how ready your documentation is, and B Lab’s review queue.
Do I need to be a benefit corporation to become a B-Corp?
No. You need a legal commitment to stakeholders, and you can make it either by becoming a benefit corporation or by amending your existing governing documents.
What happens if we fail recertification?
You lose the certification and can’t use the B-Corp logo anymore. You can address the gaps and apply again later.
Where to start
Take the free B Impact Assessment before you spend anything. Your first score tells you whether certification is a few policy changes away or a year-long project, and that’s the number you need before deciding. If you’re still choosing a legal structure, it’s also worth checking whether your state offers benefit corporations, since forming as one from the start saves you an amendment later.