public will have the option of purchasing a membership that will yield discounted prices on food, as well as a vote on decisions. A key difference with corporations is that while voting power on corporate decisions is in proportion to the number of shares owned, nearly all cooperatives operate according to the “one member, one vote” principle. Tax policy In the US, cooperatives are taxed differently than small businesses. Earnings of the cooperative itself are not subject to business taxes; however, any profits made by the individual members are treated as income and as such are subject to income taxes. Comparison with CSA In contrast, a similar program, community supported agriculture, socializes the risks associated with growing the food, transferring it from the growers to consumers. These two programs often work in concert in rural areas, and are associated with each other by consumers. However, in a CSA program, the consumer is purchasing a limited ownership in the farm, the production of the food, instead of the grocery store, the distribution of the food. Scale of cooperatives in the United States Food cooperatives in various forms operate on a large scale in the United States, occupying a noticeable part of the grocery market, albeit with large geographic variation. One study found that grocery cooperatives claim 485,000 total members in the United States, with 325 total stores. However, differences in definition can lead to measurement discrepancies, depending on what exactly one defines as a food based cooperative, since many cooperatives operate in the food sector, but are not restricted to groceries. For example, “Farm supply and marketing” cooperative members totaled 2.484 million in the US. Formation of a food cooperative In general, cooperatives are formed by a core group of members who form the initial governing body. These members must contribute enough in initial membership fees to get the grocery store off the ground and finance startup costs, such as purchasing a store, which can be a significant challenge for the cooperative model. The logistical and financial obstacles associated with planning a store and establishing a distribution network are significant, especially when no individual owns the store. This contrasts with typical corporate grocery stores, which can be financed using debt or equity, and whose owners can eventually reap a profit to recoup their investment. Nevertheless, cooperatives claim higher levels of success than for-profit businesses: after 5 years, 90% of cooperatives are