Believe it or not, there are legal rules about what you can name your cooperative business. It’s important to understand these rules and to follow the right procedure when formalizing your business name.
Your co-op's legal entity impacts the name you use
Your business name communicates who you are to the world, so think carefully about it. To make sure your name is unique, check with the California Secretary of State business search.
In California, in order to use the word “cooperative” in your business name, a cooperative must be incorporated under the California Consumer Cooperative Corporation Law. So if using the term ‘cooperative’ in your business name is important to you, you’ll need to be structured as a Cooperative Corporation under California Consumer Cooperative Corporation Law. A cooperative LLC may not use the word “cooperative” in its name, but may use related words, like “collective” or “collaborative.”
Naming Requirements for LLC's
If your co-op is considered an LLC then be sure to include the abbreviation of one of these phrases: “LLC,” “L.L.C.” or “Ltd. Liability Co.” into your name.
Other naming requirements for Cooperative Corporation
If your co-op is a Cooperative Corporation then be sure to include an abbreviation that indicates that the co-op is a corporation, such as “Incorporated” or “Inc.”
California Worker Cooperative Entity and Tax Choice
When considering entity types for a worker cooperative, there are multiple options available. One possibility is to incorporate as a cooperative corporation if one exists under state law. However, it’s important to keep in mind that there are other options to choose from. To help make an informed decision, it’s helpful to consider factors about
Are We Ready to Form a Cooperative?
If you’re reading this section, you’ve likely reviewed the basics about how a co-op functions, the type of cooperative that might best-fit your vision, the seven cooperative principles, and the type of legal entity that will best support the needs of your future cooperative. And now you’re almost ready to start your co-op! In America,
Financing a Start-up Cooperative
Due to their unique ownership structure, cooperatives often have a difficult time finding money to start and operate their enterprise. Here we focus on the different ways you can finance your co-op. It’s important to understand all of your options before deciding which is best for you cooperative. Equity Financing The initial source of funding
