Cooperative law and employment & labor relations law intersect when combining unionized workers and worker-owned employers, and there are a host of creative ways to navigate that legal landscape. Insight from attorneys in those fields
This article explores how cooperatives distribute money differently from conventional businesses, focusing on key concepts such as member equity accounts, funding collective accounts with retained earnings, patronage dividends, and profit-sharing distributions to members. We provide
There is no one right way to create a governance structure. The design of governance is entirely dependent on the desires of the members. Good governance practices will be extremely important in maintaining accountability and
Businesses pay a variety of state and federal taxes. This section will focus on federal income, employment taxes and calculating tax deductible patronage-sourced income. Federal income tax rules for co-ops Cooperatives can receive special tax
A cooperative with employees will need to pay employment taxes. The IRS has said members do not need to pay self-employment taxes on their patronage dividends. Employment tax If member owners of a cooperative choose
It is important to know the ways different taxes might affect your cooperative. An excise tax might affect your cooperative in different ways depending on your circumstances. Key Considerations on Excise Taxes for Cooperatives Definition: In
Many cooperatives use Subchapter T as their taxation status given the benefits it provides. Taxation is complicated, and cooperative taxation is even more complicated. You should consult with an experienced tax attorney and/or tax accountant
Complying with Compensation and Time-off Laws Being an employer comes with a lot of responsibility – both to employees and to the government. Now that you’ve figured out who the employees are, it is important
For cooperatives, getting loans from traditional lenders like banks can be challenging. It’s crucial to know the best practices when approaching traditional financing methods before approaching them for financial assistance. Preparation is a key step
Forming a cooperative provides a unique avenue for individuals to address their collective needs collaboratively, fostering a sense of community and shared success. Cooperatives, known for creating stable, fair-paying jobs, adopting environmentally sustainable practices, and
The information presented on Co-oplaw.org is largely based on California law and IS NOT LEGAL ADVICE.
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