What is a technology co op?

Tech cooperatives are worker-owned cooperatives that operate in the information technology industry. This list focuses on tech coops that are providing software development and consulting services.

What is a cooperative startup?

Cooperatively owned businesses are owned and controlled by the people who directly produce or use their products, supplies, or services. In this shared ownership structure, profits are shared with the people who directly support that business.

Can you make money starting a co op?

There is often a misconception that co-ops are non-profits. This isn’t true. Like traditional companies, co-ops are profit-seeking private enterprises that act in the interest of their shareholders.

How do I start a co-op?

Starting a Cooperative

1. Establish a steering committee. You need to have a group of people who represent the cooperative’s potential members.
2. Carry out a feasibility study.
3. Draft Articles of Incorporation and Bylaws.
4. Create a business plan and recruit more members.
5. Secure financing.
6. Launch.

How do you structure a co-op?

If you decide to incorporate your cooperative, you must complete the following steps:

1. File Articles of Incorporation.
2. Create Bylaws.
3. Create a Membership Application.
4. Conduct a Charter Member Meeting and Elect Directors.
5. Obtain Licenses and Permits.
6. Hiring Employees.

How do worker co-ops make money?

Worker cooperatives can help build community wealth through sharing profits with workers. The profit generated by non-owner workers must be returned to the indivisible reserves of the cooperative and not distributed directly to the worker-owners.

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.