If you’re ready to incorporate your co-op, congrats! You’ve already put in a lot of the legwork needed to figure out what your co-op will be. If you’re not quite there yet that’s okay; this page will provide an overview of what to expect when you reach this point in the development of your co-operative.
There are many important steps that lead up to incorporating a co-op, which makes your business idea into a legal entity. Here’s a quick reference to help make sure you have everything organized.
Preparing to incorporate your co-op
Before actually incorporating your co-operative business, there are some basic questions to answer about the identity of the co-op. It’s important for your incorporating group to answer these questions together, as creating a co-op is a group endeavour.
The answers to these questions will give you some of the information you’ll use to create the articles of incorporation and some provisions in the bylaws.* (Not sure what “articles of incorporation” or “bylaws” are? Or the difference between them? This video will help). These documents are usually created by the group who wants to incorporate the co-op (ie. the steering committee), but groups may also want some expert help with this process. The Co-operatives First team is happy to help steering committees in western Canada with incorporation — if you have any questions about it, please get in touch.
*If you’re in British Columbia, your articles of incorporation are known as “memorandum of association”, and your bylaws are known as “rules of association” (just to keep things interesting).
There are several tasks that governments require new businesses to complete to incorporate. These are necessary for government records for regulatory purposes, but also formalize the co-operative as a legal entity with individual rights and powers. This checklist provides an overview of the steps you need to complete to incorporate your co-operative:
This list may look intimidating, but don’t worry — if you have trouble with any (or all) of these steps, contact us to talk about how we can best help your group.
Need a business plan? Start here. The Biz Plan Creator is an easy-to-use and helpful tool. Designed to guide you through the process, the Biz Plan Creator offers a user-friendly platform and clear advice at every stage. Plus, it includes a secure account and customized branding of your plan. So, you can leave and come back to your plan as needed. And when you’re done, a branded PDF business plan ready for investors and financiers is your reward.