United States

The legal and financial framework described here came out of three and half years of collaboration with attorney Bart Deamer, a partner at the Silicon Valley office of Bingham

A sale to employees can provide an owner with significant tax breaks. Because of the IRC §1042 Capital Gains Rollover, business owners who sell at least 30% of the stock in their C-Corporation to an employee-owned cooperative can roll over the proceeds from the sale into qualified replacement securities and defer payment of any capital gains tax indefinitely.

One practice in particular deserves more attention in the United States cooperative community: the use of indivisible reserves (IR). The International Co-operative Alliance (ICA) specifies IR as a component of its 3rd cooperative principle: “member economic participation.” This co-op principle addresses several financial policies, including allocation of surpluses or residual earnings. A few alternative uses of surpluses are recommended, such as distribution of member dividends and “….setting up reserves, part of which, at least, would be indivisible” (ICA).

Introductory basics on forming a worker cooperative with immigrants. Goes over legal formations and basic theory behind organizing as a cooperative.

This document provides four case studies outline the factors of success in starting rural food cooperatives

This guide defines cooperative bylaws and outlines the essential elements and uses.

This guide is intended to assist potential co-op members and their partners in choosing planning, organizing, and supporting new and existing employee-owned cooperatives.