Cooperative Resource Library
Arizona Cooperative Incorporation
The State of Arizona has cooperative business legislation, allowing for cooperatives to be legitimate legal business entities, just like LLC’s or traditional corporations. The statute was updated 2014 and later revised in 2016 to allow for the expanded incorporation of cooperatives in the state. For-profit cooperatives can be incorporated as ‘Domestic Cooperative Marketing Associations.’
Along with the standard incorporation documents (Statutory Agent and Certificate of Disclosure) cooperative businesses are required to turn in Articles of Incorporation that are in alignment with Ariz. Rev. Stat.ARS Title 10 Chapter 19 (Sec: 10-2001-10-2151). These documents must be submitted to the Arizona Corporation Commission to register the business. Due to the online filing systems (e-corp) limitations, registering a for-profit cooperative business requires that the business registration takes place in-person or via fax. The state does not currently provide a template or form for for-profit cooperative association Articles of Incorporation.
The state also requires that all businesses create and maintain bylaws, however bylaws DO NOT get turned into the state.
In an effort to make the process more accessible, we are sharing examples of the required Articles of Incorporation and the Bylaws. The following examples are posted with the permission of the cooperative organizations. A special thank you to the Food Forest Cooperative and the Phoenix Food Co-op for sharing these documents in a commitment to uplifting other players in the cooperative business economy through knowledge and resource sharing.
Helpful Definitions
-
Bylaws provide a detailed plan of how the cooperative should function, how its internal operations should be run, and what its structure is. It states how the cooperative will conduct business and must be consistent with state statutes and the Articles of Incorporation.
-
This document establishes the cooperative as a corporation, a unique entity in the eyes of the state, upon submission to the Arizona Corporation Commission (ACC). Directors are liable for any misalignment with these articles, and any amendments must be filed with the ACC.
Example Cooperative Incorporation Documents
-
Worker-Cooperative Articles of Incorporation
The Food Forest Cooperative was incorporated in August of 2022 as a worker-cooperative. See their Articles here. (Sensitive information has been redacted).
-
Multistakeholder Cooperative Articles of Incorporation
The Phoenix Food Co-op was incorporated in November of 2021 as a multistakeholder (worker and consumer cooperative). See their Articles here.
-
Worker-Cooperative Bylaws
The Food Forest Cooperative was incorporated in August of 2022 as a worker-cooperative. See their Bylaws here.
-
Multistakeholder Cooperative Bylaws
The Phoenix Food Co-op was incorporated in November of 2021 as a multistakeholder (worker and consumer cooperative). See their Articles here.
Arizona Cooperative Business Ecosystem Development Workshops
These workshops were hosted in partnership with the City of Phoenix. This series of workshops aim to explore and uplift the future of the Arizona’s cooperative economy, laying the ground for individuals, organizations and institutions can support the development and success of these value-based businesses.
In order to advance cooperative business development in Arizona, we have designed these capacity-building workshops around new and existing businesses' needs as they develop under the cooperative model.