While many conventional businesses operate and transact without much help from lawyers, cooperative conversions are perhaps uniquely in need of legal expertise and support. Lawyers can help you navigate the conversion process and protect everyone
Financing the conversion of a worker cooperative can be tricky even if it brings tremendous benefits to workers, businesses, and society. To purchase the business they work for, workers generally need to get capital from
There are many ways to transition your business to cooperative governance. There is an art to governance design, with many policies, practices, roles, and rules that can be arranged into place to produce a desired
Your approach to converting an existing business depends largely on the type of business you’re converting. Forming a Steering Committee can be helpful for navigating this process. The Steering Committee must then assess a few
When converting to a cooperative, it may be difficult to obtain all financing necessary to purchase the business in a single loan or transaction. In such cases, the cooperative or individual workers could receive loans
Using Section 1042 to Reduce Tax Rates During a Cooperative Conversion Sale The Section 1042 Rollover, part of the Internal Revenue Service (IRS) tax code, can help business owners minimize capital gains taxation when converting
The choice of business entity has a significant impact on the tax rates and implications of selling a business to convert it into a cooperative. Pass-through entities can benefit from the “pass-through” feature, where taxes
There are three main phases of paperwork: documents that initiate the conversion process, documents that articulate what is being converted, and documents that make the conversion official. Documents that initiate the conversion process Letter of
Illinois has a well-established cooperative law framework with various statutes that individuals need to understand before starting a cooperative. It’s essential for founders and members to familiarize themselves with these laws to ensure compliance, protect
Colorado cooperative law and the suite of Colorado cooperative statutes has developed cumulatively over more than five decades. Cooperatives in Colorado are generally governed by the Colorado Revised Statutes (“C.R.S.”), Cooperative Law Generally One key