In the Part 1 blog post, we talked about the various definitions of cooperatives and the structural, operational and philosophical components of a cooperative business. This blog will talk about the different types of cooperatives, based on the needs of the members when the entity is formed. Cooperatives can be created that are tailor-made for …
Forming a business
Cooperatives and Limited Cooperative Associations: Their Differences and When to Use Them
Introduction Cooperatives are a unique business model, emphasizing democratic control, equitable distribution of benefits, and member participation. Within the cooperative world, two common structures are cooperative corporations (simply “cooperative(s)”) and limited cooperative associations (“LCA(s)”). While these two forms share fundamental principles, they contain key important differences in their legal frameworks and operational flexibility. This blog …
The Wonderful World of Cooperatives, Part 1 – What is a Cooperative?
This is the first part of a multi-part series on cooperatives: what they are, the many different kinds of coops, their possible legal structures, and much more. So stay tuned for future articles about the wonderful world of cooperatives. This first article will look at the “definition” of cooperatives and how that definition is affected …
ESOPs and Cooperatives: A Comparison of Two Options of Employee Ownership Models
This blog post will explore two different employee ownership models – ESOPs and Cooperatives. It will discuss the distinctive features, advantages, and challenges of each model, and will briefly compare the two. Our hope is to help readers better understand these two models, and when either might be a suitable ownership structure for an organization …
CORPORATE TRANSPARENCY ACT It’s Time to Report Part 3: The FORM
This is Part 3 of a 3-Part series (Part 1: It’s Time to Get Prepared & Part 2: FAQs) of information we are sending to our small business clients regarding the Corporate Transparency Act (CTA) and its impact on millions of small businesses. The CTA was passed by Congress a couple of years ago and …
Cooperatives: the fulfilment of big tech’s empty promises
I often wonder if DAOs are really different from Big Tech. I believe they can be, but that must be an intentional choice. I hope to tell you how DAOs can be different from Big Tech. Big Tech companies have revolutionized the way we live our lives, from the way we communicate with each other …
The Defiant’s Exclusive Report: Solving the Riddle of the DAO with Colorado’s Cooperative Laws by Jacqueline Radebaugh and Yev Muchnik
Our Partner and Shareholder, Jacqueline Radebaugh and Senior of Counsel, Yev Muchnik recently wrote this Exclusive Report: Solving the Riddle of the DAO with Colorado’s Cooperative Laws for The Defiant in which they reflect their legal analysis and anecdotal experience with DAOs adopting the LCA cooperative legal framework in the United States; as with other …
Revised Ohio LLC Act – Important changes coming up
Last year, Ohio revised its Revised Code (“ORC”) to update many provisions concerning the Limited Liability Company Act (the “Act”). The Act replaces the Chapter 1705 of the ORC with Chapter 1706. The new provisions will apply to both new and old LLCs and it will govern domestic and foreign LLCs formed before and after …
DAO meets cooperative: Mensiversary of the Wyoming DAO law
In the next few weeks, my colleague Yev Muchnik and I will be posting some of our thoughts on legal aspects of DAOs. Yev has been in the blockchain world for a long time and is a renowned expert in the subject. Providing legal support to cooperatives and social enterprises adopting democratic governance is a …
Updated Section 1042 Tax Benefits
There is a section of the Internal Revenue Code (IRC) that provides some tax benefits for people who sell their companies to either an ESOP or to a worker cooperative. This blog will explain how 1042 provides tax advantages when selling to a cooperative. If you are thinking of becoming employee-owned or selling your business to …
