A cooperative association is a business entity formed by individuals for their mutual benefit, and is usually organized under general state business laws or specific state statutes governing cooperative associations. The rights and duties of the members of a cooperative association are governed by state statutes and by the association’s charter or articles of incorporation.

Each shareholder in a cooperative association has equal ownership and an equal share in the control of the association, regardless of the number of shares of stock held by the shareholder. Profit earned by the association is divided among the shareholders based on the amount of their purchases during the period the profit was earned.

In Idaho, cooperative associations are typically formed under specific state statutes that cater to the cooperative business model. These statutes outline the legal framework for the creation, operation, and governance of cooperative associations. The rights and duties of members are determined by both state law and the cooperative's governing documents, such as its charter or articles of incorporation. In Idaho, each member of a cooperative association generally has an equal say in the control of the association, which is a principle known as 'one member, one vote,' regardless of the number of shares they hold. This is distinct from traditional corporations where voting power is often proportional to the number of shares owned. Profits, or 'patronage dividends,' are distributed to members based on their usage or purchases from the cooperative, rather than on the number of shares owned. This aligns the benefits of the cooperative with the members' participation in the cooperative's services or products.