Cooperators building a new enterprise encounter many questions. Some of those questions are best answered by professionals with specialized expertise, including lawyers, accountants, tax professionals, insurance advisors, financial experts, and others.
In a recent online learning program of the Appalachia Cooperates Initiative, cooperative attorneys Mike Russell and Jacqueline Radebaugh, shared their perspectives on how cooperators can prepare for working with an attorney and the 10 questions they suggest cooperators consider asking their attorney, including:
- What do we need an attorney for?
- How do you bill? What should we budget for the services we need, or you recommend?
- You’re very expensive! What questions should we think about on our own time? Can you recommend an attorney within my budget?
- What kinds of cooperatives have you worked with in the past? Can we talk with one of them?
- Given our goals and our situation, what entity structure(s) should we consider and why?
- What do your words mean?
- Why and when should we talk to an accountant? What other professionals should we talk to? Do you have referrals in my state?
- We need to raise funds. Is there anything we should know before we start talking with people, posting things online, or seeking investors? When do we need to think about securities law?
- Do we need insurance? When?
- Consider framing your questions as “If we want to do X, what do we need to think about?” rather than “Is this allowed?”
Access the handout “10 Questions to Ask Your Attorney when Building your Co-op_Handout_12.2024.”
Preparing for Meeting with an Attorney
To make their time more effective and efficient, it can be useful for cooperators to do some “homework” before meeting an attorney. For example, business planning can help cooperators explore their needs, grow their understanding of potential issues, and identify questions for professionals.
Consulting knowledgeable business development experts, like cooperative developers, can help with business planning, and exploring reputable online educational resources can help cooperators develop their understanding of concepts that will form the foundation of their business. For example, the following online cooperative education resources are great places to start when learning the foundations of cooperative business:
- Co-op Mastery: Beyond Cooperatives 101 platform is an educational resource from the OSU CFAES Center for Cooperatives
- University of Wisconsin Center for Cooperatives
- United States Department of Agriculture Rural Development Rural Business Cooperative Service & Publications for Cooperatives
- National Cooperative Business Association CLUSA Resources
- Democracy at Work Institute Resources
View a recording of the program, “10 Questions to Ask your Attorney when Building your Cooperative,” with Mike Russell, Esq., The Legal Aid Society of Cleveland, and Jacqueline Radebaugh, Esq., Jason Wiener p.c., on December 11, 2024.
Finding Legal Services for Cooperative Development
Cooperators should seek advice from competent, appropriately licensed advisors as they make decisions for their cooperatives. The resources below offer a helpful starting point for cooperators identifying legal service providers but are not the only way to locate an attorney.
- Similar businesses may be able to offer feedback or recommendations for professionals they worked with.
- State and local bar associations and law libraries may be able to help cooperators identify legal service providers in their communities.
- In Ohio and West Virginia, the CFAES Center for Cooperatives built the Cooperative and Collaborative Enterprises Legal and Accounting Resources Directory to help locate cooperative expertise. The information was provided by the listed individuals and does not indicate a referral or reference by the Center or The Ohio State University.
- The Cooperative Professionals Guild is a national member-led community of legal and accounting professionals specializing in cooperatives.
- Legal aid organizations might provide transactional support to cooperatives for qualifying individuals.
- Community-facing business clinics at law schools may provide limited assistance to cooperatives as part of their mission.
This information is provided for educational purposes only. It is not legal advice. It is not a substitute for the potential need to consult with a competent attorney licensed to practice law in the appropriate jurisdiction.
References
Russell, M. & Radebaugh, J. 10 Questions to Ask your Attorney When Building Your Cooperative. [Presentation]. CFAES Center for Cooperatives Appalachia Cooperates Initiative. go.osu.edu/ten