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> Nobody cares if they're buying from a collective or a conventional business. Before buying, you need to startup and produce. > Are you saying they should ge
by lenkite 1y ago
> Nobody cares if they're buying from a collective or a conventional business.
Before buying, you need to startup and produce.
> Are you saying they should get special government incentives not available to businesses?
Its the other way around. They are not eligible for incentives that are available to traditional corporations. They cannot issue traditional equity. There are also no equivalent cooperative-friendly structure like a Delaware C corporation which allows for friendly taxation and non-liability for the debts and legal obligations of the corporation. Difficult to apply R&D Tax Credit like corporations since it cannot carry forward credits due to legal constraints. Cannot claim Payroll Offset like startups do, etc.
The system in the US simply does not give incentives to cooperatives to the same extent that it facilitates corporations.