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 Washington State, cooperative associations are recognized as a type of business entity designed for the mutual benefit of their members. They can be organized under the Washington Cooperative Associations Act or other general business laws. The rights and responsibilities of members are dictated by state statutes, as well as the cooperative's own charter or articles of incorporation. In a cooperative association in Washington, each member typically has equal ownership and an equal say in the governance of the association, irrespective of the number of shares they hold. This means that each member has one vote in decision-making processes. Profits generated by the cooperative are distributed among the members based on the volume or value of business each member conducted with the cooperative, rather than on the number of shares owned. This distribution is often referred to as patronage dividends and is a key characteristic of the cooperative business model.