Iceland The location of the launch of the bed & breakfast chain is Iceland. Iceland is a modern democracy with the capitalist economy. Tourism is a relatively minor sector of the Icelandic economy, but has been growing in importance in recent years (CIA World Factbook, 2014). Iceland's main draws are its natural scenery complete with volcanoes, mudfields and other geothermal wonders, as well as waterfalls and the city of Reykjavik, which also draws significant tourist traffic.

A benefit corporation is a corporate form for-profit companies that have the purpose of creating a public benefit -- though they are for-profit entities. And LC3 is a low-profit limited liability company, another relatively new corporate form. These forms have only limited recognition in the United States and exist mainly to protect managers from shareholder suits that argue the primary purpose of the entity is to pursue profit (Gomez, 2012). Whether Iceland has these forms or not is something that we wish to explore, even though their benefits are mainly conveyed to shareholders and at this point there are no plans to take our theoretical company public.

In Iceland, a company seeking to exist as a corporation must incorporate. The requirements are...

These are the public and private. There are some differences between the two, but the most important is that the public company is publicly-traded while the private company is not. Thus, the rules for private limited companies are simpler than for public ones. There are several guidelines that are required for setting up a public or private limited company in Iceland and it is worth considering that residence or citizenship in Iceland or of any EEA or OECD country is a necessity (PWC, 2014).
Given that benefit corporations and LC3s are only a few years old in the U.S. And only recognized in a handful of states, it comes as no surprise that there is nothing of the sort in Iceland. There is no mention of any similar form in any of the literature on incorporating in Iceland that indicates such forms exist.

As such, the company will need to go through the standard incorporation process in Iceland. As a private company, the bed and…