Cooperative

[nelsonplaza]

All,

I have a question...Has anyone come across many Cooperative style companies in the UK. I am familiar with a cooperative in Australia, a team of IT consultants band together, each one consulting to end clients (direct - NO AGENT). A fee of 20% is taken from the gross and pooled together. Overheads are paid for and eventually the profits are shared according to the slice of shareholding, could be 5% or 10% etc.

Heard of this?

Anybody know any accountant that can set one of these up? If legal that is...

Regards,
NelsonPlaza

[BrollyBabe]

Is that a composite?

[nelsonplaza]

Not composite

No.

A composite is usually run by an accountant as a service, bit like an umbrella. The contractor has no say in the way the composite is run, do not share in any of the profits, and do not have any ownership. The contractor is usually paid salary and dividends.

A cooperative is offered to recognised members only, they manage the coop in a democratic way, and share the profits. Members own a shareholding in the coop.

[Cowboy Bob]

We do have co-operatives here in the UK, from large - http://www.co-op.co.uk/ to small - http://www.vegout.info/restaurant2.p...he%20Treehouse

Never heard of an IT co-op for contractors, but I don't see why it couldn't be done - apart from the fact that you've got to get together enough likeminded people.

[The Lone Gunman]

No.

A composite is usually run by an accountant as a service, bit like an umbrella. The contractor has no say in the way the composite is run, do not share in any of the profits, and do not have any ownership. The contractor is usually paid salary and dividends.

A cooperative is offered to recognised members only, they manage the coop in a democratic way, and share the profits. Members own a shareholding in the coop.

Treated as a pertnership and still subject to IR35 though unless partners own less than 20% each (I think).