Our Philosophy
The cooperative sector holds a transformative power in our economy and is a cornerstone of Minnesota’s vibrant community. At Avisen Legal, we take immense pride in dedicating our practice to serving those who drive this change. With decades of deep experience in a wide range of co-op law areas, we are not just legal advisors but true partners in fostering a collaborative economy.
Practice Summary
At Avisen Legal, we bring a comprehensive suite of business, securities, and tax tools to address the unique challenges and opportunities specific to cooperatives. Co-ops are not just organizations that exist at the intersection of community and commerce; they are historic institutions that have shaped our economy in myriad ways.
Throughout history, cooperatives have enabled communities to come together to pool resources, share risks, and collectively pursue economic and social goals. From the agricultural cooperatives that empowered family farmers to the retail cooperatives that transformed consumer access, these institutions have fostered resilience, equity, and sustainable growth. At Avisen Legal, we recognize the enduring impact of cooperatives and are dedicated to helping them continue to drive positive change in our modern economy.
Our expertise in co-op law goes beyond mere legal compliance; we are committed to helping you create, sustain, and grow cooperative enterprises that are both socially and economically resilient and aligned with cooperative principles. We consider it not just a responsibility, but a privilege, to support those who make Minnesota a community-focused, cooperative-driven place to live and work.
Let us help you realize your cooperative vision, as you contribute to building an economy centered on shared resources, mutual benefit, and community well-being.
Attorneys
CO-OP LAW ATTORNEY IN MINNEAPOLIS, MN
What is a Co-Op?
A cooperative is an autonomous association of persons united voluntarily to meet their common economic, social, and cultural needs and aspirations through a jointly owned and democratically controlled enterprise.
Cooperatives are unique entities that are not just for grain elevators. The cooperative structure – both the traditional cooperative and the hybrid-cooperative – allow smaller sub-groups in the economy to obtain more economic power. There are many types of cooperatives that span the entire economy: marketing cooperatives; group purchasing cooperatives; energy cooperatives, worker (you name the worker) cooperatives, housing cooperatives, retail cooperatives.
At Avisen, we are one of the few firms nationally that bring the tool of the cooperative as a unique and creative option to the sharing economy and business structuring. In addition to helping with building and structuring cooperatives, Avisen has deep and extensive experience with cooperative securities law compliance.
The Historic Role of Co-Ops in the Economy
Cooperatives have a storied past, playing vital roles in areas as diverse as agriculture, rural infrastructure, retail, and social enterprise. They not only contribute to economic stability but also act as agents of social change, offering member-driven solutions to pressing community and market needs. In Minnesota and across the nation, co-ops have historically been a resilient and effective business model that fosters sustainable growth and community development.
Five Key Types of Co-Ops
Our expertise covers the five key areas of cooperatives, each with its unique legal considerations:
- Agricultural Co-Ops: Whether it’s a family farm or a larger agricultural venture, we help you navigate the complexities of agricultural co-op law, including formation, governance, and antitrust issues.
- Rural Infrastructure and Renewable Energy Co-Ops: This includes electric and telephone co-ops that are the backbone of rural communities. We offer guidance on regulatory compliance, financing, and operational matters.
- Retail Co-Ops: From buying and selling co-ops to retail cooperatives, we assist with structure, member rights, and contractual agreements, making sure your retail co-op is legally sound and economically viable.
- Housing Co-Ops: Guiding the legal aspects of housing cooperatives, from formation and governance to member rights and operational matters, to ensure thriving and inclusive communities.
- Social Enterprise Co-Ops: Covering a wide range of enterprises including housing, worker, and arts co-ops, we help formulate effective legal frameworks for sustainable social impact.
Contact Avisen
Comprehensive Legal Support
We help guide cooperatives from inception to maturity, assisting with formation, structuring, financing, day-to-day legal operations, contracts, real estate, governance, employment matters, mergers and acquisitions, and acting as outside general counsel. In addition, we address a myriad of tax issues, including tax-exempt qualifications, unrelated business income, and the applicability of sales and use taxes.
At Avisen Legal, we have experience in helping cooperatives raise capital from a variety of sources. This includes facilitating member equity offerings, attracting outside investors, securing grants from foundations, and forming strategic partnerships with institutions and organizations across the country. Our unique expertise in cooperative fundraising ensures that cooperatives can access the financial resources they need to thrive while adhering to legal and regulatory requirements.
Our team has decades of deep experience in co-op law, enabling us to not just respond to legal questions but to anticipate challenges and offer proactive solutions. We stand by your co-op at every stage, ensuring that you are not only compliant with existing laws but are also prepared for future regulatory changes.
Moreover, at Avisen Legal, we understand the value of connections and collaborations within the cooperative ecosystem. We have a proven track record of connecting cooperatives with like-minded organizations, enabling them to expand their reach and influence. Whether it’s forging partnerships with complementary businesses, establishing affiliations with industry associations, or connecting cooperatives to networks of potential supporters and investors, we facilitate these connections to help cooperatives grow, strengthen their structural foundations, and achieve their cooperative vision. Our commitment goes beyond legal expertise; we actively contribute to the cooperative community by fostering relationships that drive cooperative success.Top of Form
Let Avisen Legal be your strategic partner in creating and sustaining a thriving cooperative enterprise, as we share in the responsibility and privilege of contributing to an economy rooted in collaboration and community.
Our Unique Approach to Co-Op Law
At Avisen Legal, we leverage decades of deep experience in co-op law to provide you with unparalleled expertise, echoing the spirit of collaboration and mutual benefit that cooperatives embody. Our services are uniquely tailored to meet the legal challenges and opportunities inherent to cooperatives, and we stand apart in a few key ways.
In-Depth Understanding of Your Business – Our expertise extends far beyond the legal domain. As entrepreneurs ourselves, we grasp all aspects of your co-op business. This allows us to provide nuanced advice that accounts for your unique challenges and opportunities. Avisen’s holistic understanding means we can offer solutions that align with your mission, values, and business goals.
The Benefits of a Boutique Firm – Choosing Avisen Legal means you’re not just getting a skilled lawyer; you’re gaining an experienced business advisor. You’ll enjoy personal attention every step of the way, anchored by our entrepreneurial background that resonates with the co-op ethos. We offer the dedicated service that only a boutique firm can provide, serving as your committed legal partner throughout the cooperative’s lifecycle.
Comprehensive Outside General Counsel Services –While we fulfill all the roles of an Outside General Counsel, what sets us apart is our understanding of the co-op landscape. Whether it’s member relations, board governance, or complex contracts, we’re familiar with the legal aspects and we understand the co-op nuances that underlie them.
Pioneering New Co-op Models – Avisen Legal is at the forefront of innovation in cooperative business models. We actively engage with stakeholder groups to shape legislation that creates new cooperative models tailored to contemporary needs. Our approach combines the best aspects of cooperative and business laws from various states, such as Delaware law, to craft unique market strategies that harmonize profit-making with social and environmental responsibility.
Advocacy and Legislative Support –We advocate for cooperatives’ vital role in driving positive economic and social change. Our team collaborates with stakeholders, policymakers, and advocacy groups to shape legislation that fosters cooperative innovation. Together, we can create legal structures that empower cooperatives to tackle current challenges and seize fresh opportunities. Avisen Legal is your partner in pioneering cooperative models that are both legally robust and responsive to the evolving demands of the modern marketplace.
Expertise in Raising Capital –Beyond traditional co-op financing, we can help you raise money and invite outside investments, without sacrificing the co-op’s fundamental principles. We guide you through the complex legal landscape of fundraising, ensuring compliance while identifying new avenues for capital.
Minnesota Statute 308B: A Gateway to Funding – Understanding Minnesota’s co-op law, particularly statute 308B, positions us to help co-ops raise money from outside investors. This opens doors to crucial funding that enables your co-op to grow and thrive, all while maintaining its core principles of democratic governance and member ownership.
We bring this multi-faceted approach to every step of your co-op’s journey—from formation to operation to expansion. Partner with Avisen Legal to navigate the co-op world with confidence, backed by a team that understands both the letter of the law and the spirit of cooperation.
The Co-Op Law Spaces We Work In
At Avisen Legal, our decades of expertise in co-op law are spread across a variety of sectors. We offer legal guidance for cooperatives in diverse fields, aiming to serve even large, out-of-state co-ops in need of Outside General Counsel services. Here are some of the areas we focus on:
Agricultural Co-Ops
- Crop Farming: Guidance on governance, contracts, and member relations.
- Purchasing Co-Ops: Expertise in structuring and negotiating purchasing agreements.
Rural Infrastructure and Renewable Energy
- Electric and Telephone Co-Ops: Legal assistance on regulatory compliance, governance, and funding.
Retail Co-Ops
- Buying Co-Ops: Legal support in vendor contracts, member agreements, and governance.
- Selling Co-Ops: Expertise in consumer law, business contracts, and organizational structure.
Housing Co-Ops
- Manufactured Home: Legal expertise in the formation and governance of manufactured home communities, ensuring compliance with housing regulations.
- Senior Housing: Regulatory compliance and operational governance, tailored to the unique needs of senior residents.
- Student Housing: Legal guidance for student housing cooperatives, covering cooperative formation, compliance with student-specific housing regulations, and governance structures.
Social Enterprise Co-Ops
- Housing: Comprehensive legal support for housing co-ops, from formation to governance.
- Manufactured Homes: Legal guidance on property law, member relations, and financing.
- Worker/Professional Co-Ops: Expertise on employment law, governance, and organizational structure.
- Arts Co-Ops: Support on intellectual property, contracts, and member governance.
In addition to these sectors, our capabilities include but are not limited to:
- Financing: From traditional member and patron raises to outside investors, PRIs, complex debt and equity capital-raising endeavors, and more.
- Real Estate: Expertise in purchasing and leasing properties tailored to co-op needs.
- Regulatory Compliance: Ensuring that you meet federal and state legal requirements.
- Tax Incentives and Credits: Guidance on leveraging available fiscal benefits for co-ops.
- Employment Issues: Comprehensive advice on labor laws, benefits, and contracts.
- Outside General Counsel: Tailored legal services that understand the specificities of the co-op model, offering strategic advice on governance, compliance, and business decisions.
- Reorganizations, mergers and acquisitions: Helping co-ops grow through acquisition, etc.
In addition to our wide-ranging expertise in various cooperative sectors, we also excel in navigating the complex terrain of taxation for cooperatives. We work closely with cooperatives that fall under different tax structures, including those taxed under subchapter T of the Internal Revenue Code (IRC) and limited liability companies (LLCs). Our deep understanding of these tax structures enables us to provide tailored tax solutions that optimize financial strategies while ensuring compliance with tax laws. Whether you’re a subchapter T cooperative seeking tax-efficient options or an LLC exploring cooperative tax advantages, our team is well-equipped to guide you through the intricacies of cooperative taxation and help you make informed financial decisions.
Real Experience in Co-Op Law
We’ve leveraged our decades of hands-on experience in the cooperative law sector to assist our clients in successfully executing projects such as:
- Formation, land acquisition, and other legal advising for manufactured home park co-ops
- Meeting regulations, structuring, and fundraising for a tribal co-op to build an industrial hemp business
- General Co-Op fundraising
- Drafted a No Action Letter for American Crystal Sugar
- Worked on MN’s proposed housing cooperative 308C
Contact Our Minneapolis Lawyers for Cooperatives
See how you can kickstart your new cooperative or take your existing co-op to the next level. Contact us today with your questions. We are here for you.
Co-Op Law Frequently Asked Questions
Cooperative law focuses on legal matters related to cooperative organizations, where individuals voluntarily come together to form a jointly owned and democratically controlled enterprise. This practice area covers legal aspects of cooperative formation, governance, operations, and dispute resolution.
We offer legal services for various types of cooperatives, including worker cooperatives, consumer cooperatives, housing cooperatives, agricultural cooperatives, and more.
Legal services for cooperatives can ensure compliance with relevant laws, facilitate smooth governance, aid in contract negotiations, provide dispute resolution mechanisms, and help cooperatives understand their rights and responsibilities.
Cooperative organizations often encounter issues related to bylaws drafting, membership agreements, financing, taxation, employment law, intellectual property, contracts, and potential disputes among members.
We can guide you through the process of forming a cooperative, including drafting foundational documents, facilitating member agreements, obtaining necessary licenses, and ensuring compliance with incorporation laws.
Governance is crucial in cooperatives, as democratic decision-making and member participation are integral. We can help draft governance structures, voting procedures, and dispute resolution mechanisms tailored to your cooperative’s needs.
Yes, we can provide legal assistance in securing financing for cooperatives, which may involve drafting loan agreements, shareholder investment terms, or exploring grant opportunities.
Worker cooperatives involve unique employment dynamics. We can advise on matters like collective bargaining agreements, employee rights, profit-sharing, and other employment-related legal issues.
Yes, we can guide the process of converting traditional businesses into cooperatives, including legal steps, governance adjustments, and member buy-in strategies.
A cooperative is an organization owned and controlled by its members, who share in the decision-making and benefits. In contrast, an LLC is a business structure that provides limited liability protection to its owners (members), who can be individuals or entities. While cooperatives emphasize democratic ownership and shared benefits, LLCs focus on liability protection and flexible management structures.
A cooperative is characterized by its member-driven ownership and democratic control, where profits and decision-making are distributed among members. On the other hand, a corporation is owned by shareholders and managed by a board of directors, with profits often distributed to shareholders based on their ownership stakes.
A cooperative is a business entity where members collectively own and control the organization, working together for mutual benefit. In contrast, a partnership is a legal arrangement where two or more individuals or entities collaborate for profit, but each partner retains a degree of autonomy and decision-making authority.
Yes, cooperatives can potentially receive Program-Related Investments (PRIs) from foundations or other charitable organizations. PRIs are investments made by nonprofits to support projects that align with their charitable goals. Cooperatives engaged in activities that advance social, environmental, or community development objectives may qualify for PRIs.
Forming a cooperative makes sense when individuals or businesses share a common goal, and collective ownership and decision-making can enhance their efforts. Cooperatives are particularly suitable when a collaborative structure can lead to cost savings, increased market access, or improved bargaining power.
Cooperatives are gaining popularity due to their emphasis on member empowerment, shared benefits, and sustainable practices. They offer an alternative business model that aligns with changing consumer preferences for ethically produced goods and services. Additionally, cooperatives can foster local economic development and create resilient communities.
We offer assistance to both new and established cooperatives. Whether you’re starting from scratch or seeking guidance for ongoing legal matters, we’re here to help.
To schedule a consultation, you can contact us here or call us at (612) 584-3400. Our legal experts will then reach out to discuss your cooperative’s requirements.
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