How do I start a co-op?
Starting a CooperativeEstablish a steering committee. You need to have a group of people who represent the cooperatives potential members. Carry out a feasibility study. Draft Articles of Incorporation and Bylaws. Create a business plan and recruit more members. Secure financing. Launch.9 Oct 2017
Can a co-op be profitable?
That is, when the Co-op has a profit, that profit belongs to the member-owners, unlike a purchasing club like Sams Club or Costco, where profits are reinvested or paid to the investors, not the club members. Because our shares dont increase in value, a co-op cannot raise capital as directly as a corporation.
Do cooperatives pay tax?
Cooperatives are usually subject to all other taxes on the same basis of other businesses. Cooperatives pay sales tax, payroll taxes, license, property and excise tax. In some states cooperatives are exempt from corporate franchise taxes which are taxes on the net worth of corporations.