Setting Up a Cooperative Business in Florida

Setting up a cooperative in Florida can be done through the state's official website.

A cooperative business is a type of business structure in which the employees, patrons, or a group of businesses own the business entity, and profits made by the cooperative business are paid back to the member-owners. The most common types of cooperatives are consumer cooperatives, worker cooperatives, producer cooperatives, and business-owned cooperatives.

In the state of Florida, forming a cooperative is done much like forming a traditional business entity---whether the cooperative is a corporation, an LLC, or an LLP, all require Articles of Incorporation and Registration of Fictitious Name.

Things You'll Need

• Business plan
• Articles of Incorporation
• Fictitious name certificate
• EIN

Instructions

1. Determine the type of legal structure for your cooperative business, depending on the type of cooperative: consumer (in which the consumers are member owners), worker (in which those that are employed by the cooperative are employees/owners), or producer (in which producers of a particular product or commodity are owners). If it's a business cooperative, in which a group of businesses conglomerate as owners, it might be better to file as a corporation. Another option is to file as a LLC (Limited Liability Company) but only if there are other consultants that will be working under your moniker and are 1099 contract employees.

   In Florida, you will need to register a Fictitious Name and file a Fictitious Name Certificate with the Secretary of State and draft your articles of incorporation as a corporation or LLC (see Resources).

2. Write a business plan. A business plan (typically about fifteen pages in length), outlines all facets of the business, including but not limited to: the principals, number of employees (if any), number of producers or businesses (if any), office space, lease amount and terms, marketing budget, estimate on expenses and profits, et cetera.

   Besides being useful for investors or business loan applications, your business plan will also help you set a clear and concise set of steps for opening cooperative business in Florida.

3. Get your financing in place. As a cooperative entrepreneur, you must buy fixtures, equipment, and inventory for your brick-and-mortar storefront or leased office space; you'll also need money on which to live while the business is growing, and money for legal and marketing expenses. This can be self-financed by the cooperative group, but in the event the cooperative seeks a loan, a business plan along with some collateral will be needed (depending on the amount of the loan sought the amount of collateral will differ).

4. Market your cooperative business. This will include brochures, mailers, flyers, radio and/or print ads, et cetera to market your cooperative to the public state of Florida. You may also consider seeking the advice of a professional sales person to help you market more efficiently and effectively.

Tips & Warnings

• File for an Employer Identification Number with the IRS (see Resources) and open a business bank account in Florida to keep personal finances separate from the cooperative business finances

References

• How to start a cooperative
• About cooperative business structure

Resources

• FindLaw.com: State Guide: Articles of Incorporation
• My New Company: How to Incorporate in Florida
• IRS.com: Form SS-4, Application for EIN