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A SELC article explaining key tradeoffs between forming a worker cooperative as an LLC or as a cooperative corporation.
Entity choice shapes how democratic governance is protected, how member rights are documented, and how the co-op may be taxed.
Founder teams comparing legal structures before drafting governance documents.
Heirloom Library entries are summaries and wayfinding notes. The original source is the best place to read the full resource.
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Democracy at Work Institute
A DAWI guide explaining how governing documents can codify democratic ownership, governance structure, growth, and conflict-resolution pathways.
Equal Exchange
A real-world example of articles of incorporation and bylaws from Equal Exchange, one of the better-known U.S. worker cooperatives.
Sustainable Economies Law Center
A 30-minute SELC teach-in and supporting materials introducing governance, management, board roles, and power distribution in worker cooperatives and worker self-directed nonprofits.
This free 2016 SELC article compares cooperative corporations and LLCs through questions about governance protections, employment status, taxation, and outside investment. It explicitly discusses California law, even where some of the issue-spotting may help teams elsewhere.
Its statements about employee status, workers' compensation, securities exemptions, and Subchapter T reflect a point-in-time legal orientation. Use it to prepare entity-choice questions, not to select or form an entity without checking current state and federal law with qualified advisors.