Colorado Corporate Bylaws for Apartment Co-operative - Stock Corporation
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FAQ
The term Co-operatives describes a wider movement of mutual enterprises, which includes all Co- operative Societies and Community Benefits Societies. However, not all co-operatives use these legal structures many are in fact limited companies.
While other types of corporations are owned by shareholders or stockholders, co-ops are owned by its members or the people who use the services of the cooperative. Some cooperatives are employee-owned. To become a member of a cooperative, a person makes a financial contribution.
Your corporation is not legally required to have corporate bylaws, but you should adopt them because they establish your corporation's operating rules, and help show banks, creditors, the IRS, and others that your corporation is legitimate.
The difference between corporation and cooperative is that a corporation is a legal entity that stands separate from its owners. A cooperative, however, is an association of individuals voluntarily cooperating for the promotion of mutual, social, cultural, and economic benefits.
A cooperative is a legal entity owned and democratically controlled by its members. Members often have a close association with the enterprise as producers or consumers of its products or services, or as its employees.
Prepare Corporate Bylaws They are not filed with the state. Your corporation is not legally required to have corporate bylaws, but you should adopt them because they establish your corporation's operating rules, and help show banks, creditors, the IRS, and others that your corporation is legitimate.
All business organizations have bylaws. Only firms organized as sole proprietorships have limited lives. Income from both sole proprietorships and partnerships that is taxable is treated as individual income.
The financial structure of a cooperative organization is based on equity, or membership and capital shares. Membership shares entitle owners to voting rights, and capital shares entitle members to share in the organization's profits.
A cooperative operates as a corporation and receives a pass-through designation from the IRS. More specifically, cooperatives do not pay federal income taxes as a business entity. Instead, the cooperative's members pay federal taxes when they file their personal income tax.
A Colorado cooperative is formed by filing Articles of Incorporation with the Colorado Secretary of State's office and these Articles create a public record. As discussed above, in Colorado, a cooperative can be formed either under the older Article 55 or the newer Article 56.