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Choosing your Approach to Cooperative Governance
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How Cooperatives Work
While there are many similarities to traditional businesses, cooperatives operate differently both legally and in practice. According to the International Cooperative Alliance, a cooperative “is an autonomous association of persons united voluntarily to meet their common economic, social and cultural needs and aspirations through a jointly-owned and democratically-controlled enterprise.” Cooperative businesses are often based on
Subchapter T: Patronage Taxation
Subchapter T: The Most Common Tax Status for Co-ops The Subchapter T designation is designed specifically to address the unique nature of cooperative income. It allows a co-op to pay taxes only on the income earned after worker-owners have been paid out. This can reduce the co-op’s tax burden substantially. There are some very specific
