Hacker News new | ask | show | jobs
by WJW 1701 days ago
The fact that there are so few of these types of company around probably means that they have trouble surviving in a world where the competition is supported by modern finance.
2 comments

> they have trouble surviving in a world where the competition is supported by modern finance

The problem with coöperatives is longevity. We have white-collar coöps of sorts: partnerships. They tend to disintegrate after a generation or become quasi-corporations over time because immortal entities can make plans and promises on time scales that ones that grow old and change priorities and die can't.

Can you have a cooperative with limited liability? I'm sure you can emulate it with a limited company and particular arrangements of stock ownership and voting rights, but I doubt that's easy or cheap to set up.

The John Lewis Partnership in the UK is a public limited company whose shares are entirely owned by a trust that pays shares of profits to all of its employees, which isn't quite "ownership" but close, and they have a $15bn revenue. Publix Super Markets in the US has a $45bn revenue and is privately owned with all employees receiving stock.

https://www.investopedia.com/articles/insights/051316/6-succ...

Financing is probably an issue at a certain level but it doesn't seem to be limiting otherwise. They're just unusual, although if you consider startups giving employees a stake isn't that strange today.

> Can you have a cooperative with limited liability?

Yes, in the US, at least. A coop can be a corporation or LLC (and a coop that is either the former or the latter when taxed as a corporation has special tax status with the IRS, under subchapter T, so occasionally they are referred to as “T corps” analogous to C or S corps.)

An S-Corp is the structure made for that sort of spread to a limited number of stakeholders. Not to say it's viable in some states with current regulation.

Also, LLP is a limited liability partnership. Wholly state entity, though, so the same caveat again. Member limits, etc.

And that's the USA of course. Your country may vary.