Incorporating your co-op is a big (and exciting) step in its start-up journey. It involves drafting corporate documents, complying with government regulations, and filing an application with the corporate registry to make your co-op a real, existing business.
If you’re unfamiliar with how this process works, it may feel like a steep hill to climb. But it can be easier than you think.
Once it’s incorporated, a co-op can do so many things to move forward: apply for grants, take on debt, enter into agreements, and more. That’s why, at Co-operatives First, we always recommend incorporating sooner rather than later. But a lot of groups tend to overthink the incorporation process, which can delay their progress.
Here are three reasons you don’t need to overthink (or stress about) your co-op’s incorporation.
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There are lots of templates available
Just because you’re creating a new business doesn’t mean you need to reinvent the wheel. It’s perfectly fine and even encouraged to use a template as a starting point for your incorporating documents. Our site, the Co-op Creator, has all the templates you’ll need to start a co-op in western Canada. So don’t worry about starting with a blank page – you can use documents that have been created by others and adapt them to reflect what you want for your co-operative.
Most of the provisions in your incorporating documents will be the same as every other co-op. There are only so many ways to regulate things like your fiscal year, the quorum at AGMs, or executing instruments — so much so the governments of British Columbia and Manitoba offer their own templates for co-op bylaws. So don’t worry about submitting an overly customized set of bylaws. Tweak things here and there to reflect your most important processes and move on.
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You can always change things later
Writing your co-op’s bylaws shouldn’t be a ‘one and done’ exercise. As your business grows, you’ll need to amend your articles or bylaws to update your governance and help the co-op grow. That means you don’t need to create the perfect incorporating documents upfront.
Once you start operating, you might realize you should have issued a second class of investment shares. Or maybe you’ve set your quorum too high and can’t get enough people together for a special meeting. Fortunately, when you realize these things, you can amend your bylaws at an AGM or by calling a special members’ meeting. Usually, the board will identify the issue in the bylaws and prepare a resolution with the suggested wording that members will vote on. It’s as simple as that.
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You can get free expert advice
Starting a co-op requires a good understanding of how co-ops work. And that’s what our team of experts at Co-operatives First can bring to the table: we’ve helped create over 100 co-operatives. There’s no need to pay a lawyer to learn about co-ops before they can help you. And you don’t need to work with a consultant who bills by the hour. Our team is fully funded to support entrepreneurs who are starting a co-op. And, if you want us to handle your co-op’s submission to the government, we can do that too!
So, what are you waiting for? Contact Co-operatives First to get started on your co-op’s incorporation.