Vermont Mutual Benefit Enterprise Definition
Vermont Mutual Benefit Enterprise
DEFINITION
A Vermont Mutual Benefit Enterprise is a hybrid business structure that includes characteristics of both an LLC and a cooperative. Known in other states as a limited cooperative association (LCA), this unincorporated cooperative entity is an association of individuals or businesses that unite to meet their mutual interests by creating and using a jointly owned enterprise. The MBE combines an unincorporated and flexible organizational structure (like limited liability companies and limited partnerships) with the principles and values of “traditional” cooperative corporations. This is designed to increase equity investment opportunities for capital-intensive and startup cooperative enterprises by allowing, but not requiring, the MBE to have voting investor members in addition to patron members.
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