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
The information presented on Co-oplaw.org is largely based on California law and IS NOT LEGAL ADVICE.
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