Business Plans, Feasibility Studies

A sale to employees can provide an owner with significant tax breaks. Because of the IRC §1042 Capital Gains Rollover, business owners who sell at least 30% of the stock in their C-Corporation to an employee-owned cooperative can roll over the proceeds from the sale into qualified replacement securities and defer payment of any capital gains tax indefinitely.

This booklet is meant to be a “users’ manual” for workers (especially immigrant workers) and their advocates in the field who may be thinking of organizing a worker owned cooperative as a worker empowerment strategy.

this guide is about worker cooperatives: businesses owned and controlled by the people who work in them. The worker-members own the business and return its profits to themselves based on how much they work for the co-op. They control the co-op, perhaps by electing a Board of Directors which makes policy and hires managers to organize their work. This hierarchical structure is common in medium and large worker co-ops, just like the other co-op sectors. But small worker co-ops are usually run collectively.

This is a step by step guide to the fundamentals of starting a worker cooperative