Katymac

See the attached link http://www.cicregulator.gov.uk/faq.shtml#two

I am not sure it has any particular advantages to you and your nursery unless it enables you to access additional funding.

A coop is a business owned and operated by its employees and again I am not sure how it will enable you to access additional funding.

From what I can see the capital and any reserves in a CIC are held in trust for the community whereas a coop holds them on behalf of the members/employees.

If you are putting in your own capital then the CIC isnt a very good idea.

I always start out being altruistic and thinking I'll share profits as dividends etc etc. Then I realise that a co-operative everyone is a shareholder and can boot you out as chair/MD and elect their own :-(.

A CIC has rules on how to split the profit. I.e you can pay yourself a directors wage, a good wage even, and other staff, but any business profits have to go back in for some good purpose and not be paid as dividends. The main benefit of a CIC over a regular ltd company is the easier access to grants. If you already qualified as a CIC then you've satisfied companies house on the purpose of the company is for some good of society. However funders will still want to check over you books in most cases.

Ask yourself - why do I want a Co-op, CIC? If it to put the money to good use, then you can still do that by having a good CSR policy, and / or write contracts with people on how you'll distribute money - should you make any :-)

I've been looking at starting several businesses lately - all around eco themes, and you kind of feel you should be a co-op or CIC. I've come the conclusion that profit needn't be a dirty word! Keeping control is more important.

Simon

Katymac

any further with your coop plans.

I am in the middle of purchasing a victorian market hall which will be a blank canvas as my main operation will be a CHP unit in the building next door heating the market hall. I am into renewables and ethical trading and was wondering whether the market hall would be better set up as some form of coop. The building has 8 former retail units and space for 9 craft units on the ground floor and 10 display units on the mezzanine floor with balcony. The central area of the building has to remain open so continental tables and chairs was envisaged with a wine bar/restaurant on one side and a pub/cafe on the other.The other alternative would be a standard tenant and landlord arrangement but that seems to defeat the object of a working community. Any suggestions

I worked for what started as a workers' collective for nearly 20 years. A lot changed in that time and a lot of themes repeated themselves. Try me via www.syec.co.uk if you want more info.

Nick