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An employee cooperative is a membership organization set up to market the labor and skills of its members through owning a business. It is owned by the members. Each member has one voting share. Its profits are allocated among the members on the basis of how much labor they put into the co-op.
Register your Co-operative A co-operative is a distinct form of enterprise that provides services and/or products to its members.There must be at least five natural persons or two juristic persons or a combination of any five persons in order to form a primary co-operative.
Common types of service cooperatives include finance, utility, insurance, housing, and health care cooperatives. Rural electric cooperatives, such as Nolin RECC, provide electrical service to residents and businesses in rural areas, and they are probably one of the most well-known examples of a service cooperative.
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.