When setting up a cooperative, one critical decision is where to organize it legally. While in many cases the easiest course is to organize in… Read More »In What State Should You Organize Your Cooperative?
Worker cooperatives are owned and controlled by their members (the workers) for the benefit of the workers. Their democratic ownership and operation set them apart… Read More »How Will Your Worker Cooperative Be Managed?
Because cooperatives are focused on benefiting their members, rather than producing profits for investors, cooperatives often face unique challenges when it comes to raising capital.… Read More »How Cooperatives Use Preferred Stock to Attract Outside Investment?
Because cooperatives and limited liability companies (LLCs) both designate their owners as “members,” groups deciding whether to use a cooperative structure may experience some confusion… Read More »Differences Between Membership in a Cooperative and Membership in a Limited Liability Company
Groups interested in forming an organization to serve a specific group or community often consider forming either a cooperative or a 501(c)(3) nonprofit corporation. Both… Read More »Cooperative or 501(c)(3)
This final post in the series addresses sales of preferred shares. Unlike common shares, preferred shares can offer dividends and in most states, can be… Read More »Selling Preferred Shares in Cooperatives
Groups interested in forming a cooperative that is structured as a for-profit corporation often have questions about how shares are issued, who can purchase shares,… Read More »Legal Requirements for Selling Common Shares in Cooperatives
Groups interested in forming a cooperative that is structured as a for-profit corporation often have questions about how shares are issued, who can purchase shares,… Read More »The Role of Shares in Cooperatives
In a lawsuit brought against a nonprofit, member-owned electric cooperative corporation, the plaintiff-members (“Plaintiffs”) alleged that Southwest Mississippi Electric Cooperative (the “Cooperative”) unlawfully failed to… Read More »Mississippi Cooperatives Win Big on Arbitration Clause in Bylaws
On March 27, 2020, the President signed into law the Coronavirus, Aid, Relief, and Economic Security Act (CARES ACT). The CARES Act provided an economic… Read More »Cooperatives May Qualify for Benefits Under CARES Act
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