Schedule C asks if I made any coop payments. What is a coop payment

[shipjim]

in review, schedule C asks if I made a coop payment.  What is coop?

[TomK · Accepted solution]

A cooperative, or co-op, is an organization owned and controlled by the people who use the products or services the business produces.  People typically join a cooperative business to enjoy the benefits of group purchasing, pooled risk, and the empowerment of owning and controlling the company.

For example, you may belong to a co-op that purchases raw materials that are used in your business.  As a co-op, you and the other owners can buy such raw materials at a collective lower price then you could individually.  A co-op payment might include your part of the cost of a storage facility to store those raw materials.