Cooperative Corporation
A business owned and democratically controlled by its members, who share in the benefits. Operates on the principle of one member, one vote.
15 Pa.C.S. § 7101 et seq.
Notice: Business entity selection and formation involve legal, tax, and liability considerations that vary by situation. This information is provided for educational purposes. Consult with a licensed attorney and tax professional for guidance specific to your business.
Types of Cooperatives
Consumer cooperative
Producer cooperative
Worker cooperative
Housing cooperative
Seven Cooperative Principles
Voluntary and open membership
Democratic member control (one member, one vote)
Member economic participation
Autonomy and independence
Education, training, and information sharing
Cooperation among cooperatives
Concern for community
Democratic Governance
Unlike corporations where voting power is proportional to shares owned, cooperatives operate on a one member, one vote principle regardless of investment amount.
Formation
Filed with PA Department of State. Formation fee: $125. Must adopt bylaws and hold organizational meeting. Worker cooperatives are growing in popularity in the Pittsburgh area.