For a very long time, the two choices that for-profit enterprises had when choosing an entity form in Virginia was the corporation and the limited liability company (LLC).  Starting July 1st, Virginia is adding a choice for those entrepreneurs that want to have a for-profit entity but also want to be able to support a social mission with some of their profits.  This new entity is a type of stock corporation called a “benefit corporation.”

On March 26, 2011, the Governor signed into law House Bill 2358, which added an article to the Virginia Code, title 13.1.  Under this new law, a corporation can elect to be a “benefit corporation” by so stating in its Articles of Incorporation (or amended Articles if transitioning from a stock corporation to a benefit corporation) and by stating the general public benefit that it will be providing.  Once complete, the benefit corporation can legally use part of its profits to support its stated general public benefit purpose.

This new form of entity is perfect for entrepreneurs that want to blend non-profit and for-profit activities and create a hybrid that allows them to make money and do good at the same time.

I have added a section to my web site regarding buying and selling Virginia businesses.  I have handled many transactions for clients on both sides and thought it would be helpful to lay out the process. 

There are five basic steps whether you are buying a Virginia business or selling one.  The steps are different, of course, depending on which side of the transaction you are on.  Check it out and, if I can be of assistance with your Virginia transaction, just let me know.

Have you ever wondered how many non-profit organizations there are in Virginia or how many people in Virginia are involved in non-profits?  An interesting article today in the Richmond Times-Dispatch shares some statistics on this subject.  Some of the highlights (from a study using data from 2005) are that:

1. One in seventeen employees in Virginia work for a non-profit;
2. Non-profit employees in Virginia earned more than $8.2 billion in wages;
3. In 2005, there were 10,414 non-profit organizations in Virginia (and that number is growing), with the highest number of employees in non-profits working in hospitals.

Check out the article for more interesting facts about non-profits from the study mentioned in the article. And for more information on starting your own  Virginia non-profit, check out our Virginia non-profit section.

If you have employees that earn the minimum wage, their hourly wage went up today to $6.55 per hour.  Previously, the minimum wage under federal law was $5.85 per hour.  Effective today, July 24, 2008, it has been raised to $6.55 per hour and you should adjust your payroll accordingly.  It is also worth noting that the minimum wage will rise to $7.25 per hour next year.