My husband and I have an LLC for our work doing small engine repair. Occasionally our son helps a little, but otherwise it's just us.

My husband has a close friend and former co-worker who is losing their job, and we are very busy and could use help, but we are deeply morally opposed to profiting from someone else's labor. I was thinking that perhaps we could subcontract stuff to her for a little bit, and if things are working out, then we figure out how to restructure the business.*

There is a restaurant in a nearby town that is worker-owned, but I haven't asked there for advice partly because their structure is byzantine, and idk if that comparison is apples-to-oranges because of the wildly different industries.

*

I understand that sharing ownership means sharing control. I would have qualms about that with pretty much every person I know because most people aren't as obsessed with details and informed decision-making etc as I am; I am not concerned about that with this friend, because she has the same flavor of AuDHD as I do. I was undiagnosed when we met her, and our striking similarities in personalities and behaviors were a huge part of the reasons for seeking diagnosis.

Also, it's a rural area, everybody knows everybody, and she is someone with deep roots who is pretty universally loved and respected. There are few people I would trust to try to step into my life and fill in for me if I were seriously injured, but I know she would give everything as much or more care than I do. She is the best.

  • D61 [any]
    ·
    5 months ago

    @CarsAndComrades@hexbear.net, any advice?

    Our very own CarsandComrades has done a few podcasts with Zac from the Automotive Free Clinic. Been a while since I've listened to the few episodes and I can't remember how much they went into the "business incorporation" side of things. Unsure of the all specific differences between a for-profit worker coop and a non-profit. There will be some different accounting, book keeping and tax stuff for sure but I'm pretty ignorant of the owner/manager/board of directors (or its equivalent) differences. But it might not be a bad idea to call/email the Automotive Free Clinic and chat them up.

    I think the below link is the first episode where they talk to Zac of the Automotive Free Clinic.

    https://podcasts.apple.com/us/podcast/the-automotive-free-clinic-with-zac-the-mad-redneck-hyden/id1555784243?i=1000622128623

    It wouldn't surprise me that, assuming its just going to be the three of you, it would be easier to modify the LLC to just have another owner. Then its probably going to be a matter of figuring out how to account for them "buying in" and getting their name updated on the official documents, planning ahead for if/when an owner wants to sell their shares of the business when they don't want to be a part of the LLC anymore.

    It seems like coops tend to be required to have Boards of Directors and elections, it would make sense that the Directors can't be the workers, but if the local community is pretty tight knit and all cool with each other this probably won't cause problems though.

    Reach out to that restaurant that's a worker coop probably is a good idea. Maybe go visit the place a few times when its not super busy and try to chat up the front of house workers to get a feel for the place before trying to contact the "business manager" side of things.

    You should be able to contact local chamber of commerce or local government types to see if they can give you some direction in organizing the business as a coop. If there's a university nearby or a agricultural extension agency (may or may not be associated with the university) they might have some community outreach orgs/programs that can try to help guide you and assist in research. For the university, you're probably going to be looking for resources under the umbrella of "Business School" or "Business Law." If there's a local Farmer's Coop, you might be able to find somebody to talk about organizing a coop as well.

    • CarsAndComrades [comrade/them]
      ·
      5 months ago

      I don't know any more than what's in that episode, but you could try contacting Zac. Although he just had a kid recently so I imagine he's pretty busy. IIRC the AFC is some type of non-profit.