You might easily think both cooperatives and corporations are the same because of how they sound, but there are some differences between them, especially in the areas of how they are formed, purpose, etc. A corporation is a legal body created by the law, formed by a group of individuals who come together to contribute capital. However, its continued existence does not depend on the existence of its members, and the liabilities and privileges are not the same for all its members.
A cooperative, on the other hand, is an organization created by people who have common interests towards achieving a particular goal. At times, a cooperative does not need to be created by law before it can be formed. While the main objective for the creation of a corporation is to make a profit, a cooperative might be created mainly to perform a particular task without any intention to make a profit.
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