Joining a cooperative can be a stunning experience for a lot of businessmen, however, it is not a simple task considering the inclusion of various management members who obtain equal rights to vote and make decisions. In this article, we will make an overview analysis about cooperative and how Dev Smith Nguyen can help in your journey of starting a cooperative.
First, what is a cooperative?
A Cooperative Business:
- Is a company, which can be formed by at least five people or are registered corporations
- Is open to people who use its services and are willing to be active members
- Appreciates democracy where members have equal voting rights and share in making policies and decisions.
What are equal rights of cooperative members?
Your members in a cooperative will share rights and obligations related to the business including:
- the investment and operational risks
- all the benefits
- any losses.
What are types of cooperative?
Considering the size of the business, there are two different types of cooperatives:
– Small cooperatives
A small cooperative doesn’t issue shares to more than 20 members exceeding $2 million or doesn’t issue securities to the public. As a small co-operative you must also have at least one of the following:
- total income of less than $8 million
- total gross assets less than $4 million
- fewer than 30 employees.
– Large cooperatives
Large cooperatives issue shares to more than 20 members exceeding $2 million or issue securities to the public. As a large cooperative you must also have at least one of the following:
- total income of more than $8 million
- total gross assets more than $4 million
- more than 30 employees.
Considering fund distribution capacity of the business, there are two different types of cooperatives:
- Distributing cooperative which can give surplus funds to its members
- Non-distributing cooperative which can use extra funds to support its activities but can’t distribute funds to members.
How can Dev Smith Nguyen help you to cooperate in a business?
As an expert in corporate law, each lawyer at Dev Smith Nguyen is committed with the highest responsibility spirit in every single move of your journey to make sure of law compliance, time and cost efficiency. Our scope of support covers, but not limited to the following activities:
– Preparation of your cooperative’s rules
– Writing of your formation disclosure statement
– Submission of your rules and disclosure statement for approval
– Holding your cooperatives’ formation meeting
– Registering your cooperative
– Arrangement of your cooperative’s accounts, audits and financial report
– Arrangement of your cooperative’s licences and insurance
– Changing your cooperative’s rules
– Submission of your application
No matter how challenging your actual situation might be, Dev Smith Nguyen team will customize our services to work out the most time and budget-saving approach for the highest satisfactory result. Please find no hesitation to contact us as soon as you might get into any trouble at any step. Though we might not be your first choice of trust, Dev Smith Nguyen promise to be your lasting choice once you visit us for help.