For starters, Delaware has already implemented this type of business.
The Maryland State Department of Assessments and Taxation (SDAT) is now accepting the new business filing type called Limited Worker Cooperative Association (LWCA).
MD Senate bill 144 established this entity type and is effective October 1, 2026. They are Maryland Limited Liability Companies (LLCs) that elect to operate under the cooperative rules, allowing workers to form democratically-controlled businesses with shared ownership and liability protection.
Anyone desiring to establish this type of entity should contact me to discuss if this would be a beneficial entity for you. Also let me know if assistance is needed in filing Articles of Organization which need to be prepared prior to filing for the LWCA. The Department can only accept paper LWCA filings by mail or in-person at the moment. All entities are required to make annual filings in order to legally operate in Maryland which I can assist with as well.
The goal of these types of entities, from what I have read are:
- Economic stability as the entity generally focuses on community needs (this is not an international type entity)
- LWCA provides opportunities for marginalized individuals, reducing inequality and promoting community cohesion.
- It reduces dependency on social services and of course, provides tax revenue to the goverment(s).
- Most of all, it promotes entrepreneurship by allowing workers to have a stake in the business practices!