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 Nevada, cooperative associations are recognized as a type of business entity that is formed by individuals for their mutual benefit. These entities are typically organized under specific state statutes that govern cooperative associations, which can be found in Chapter 81 of the Nevada Revised Statutes (NRS). The rights and duties of the members are outlined by these statutes as well as by the cooperative's charter or articles of incorporation. In Nevada, each member of a cooperative association 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 typically proportional to the number of shares owned. Profits earned by the cooperative are distributed among the members based on their patronage, or the amount of business they conduct with the cooperative, rather than on the number of shares they own. This patronage dividend system aligns the benefits received by members with their contribution to the cooperative's success.