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This structure aligns beautifully with the vision for Seedy Peeps, supporting both cooperative revenue generation and operational clarity. Here’s an optimized breakdown for setting up the Seedy Peeps online store through the Viroqua Public Market (VPM) as a hybrid cooperative model:
Structure Overview for Seedy Peeps Online Store
Purpose: To create a streamlined, tax-compliant, and decentralized marketplace where each Seedy Peep vendor can operate autonomously under the VPM umbrella while contributing to the Seedy Peeps collective. This model allows each vendor to maintain independence while building a shared revenue stream for Seedy Peeps and sustaining operational expenses.
Key Components
1. Viroqua Public Market (VPM) as Store Administrator:
• EIN and Sales Tax Compliance: VPM serves as the “hub” entity for the Seedy Peeps online store, using its verified business credentials (EIN, sales tax payment, etc.). This allows the store to comply with state sales tax and other business requirements seamlessly under VPM’s established infrastructure.
• Sales Percentage for VPM: VPM collects a small percentage from each sale to cover the costs of administration, maintenance, and development on the Shopify platform. This fee structure incentivizes VPM’s involvement and ensures that the online store remains a sustainable venture.
2. Seedy Peeps Members as Vendors:
• Vendor Autonomy: Each Seedy Peep acts as an independent vendor within the marketplace. They can be structured as individual LLCs, private membership associations (PMAs), or other entities, maintaining their autonomy while benefiting from the cooperative platform.
• W9 and 1099 Compliance: Each vendor submits a W9 form, and VPM issues 1099 forms annually to ensure tax compliance. This arrangement ensures that vendors retain responsibility for their own tax obligations, simplifying accounting for both VPM and Seedy Peeps .
• Page on VPM Site: Each vendor receives a dedicated page on the VPM website, enhancing visibility and accessibility. This also provides a digital “storefront” that vendors can personalize to align with their brand.
3. Seedy Peeps Collective Revenue Stream:
• Percentage from Vendor Sales: Seedy Peeps itself can also act as a vendor, selling branded products, promotional items, or exclusive Seedy Peeps merchandise. Alternatively, it could receive a percentage of each vendor’s sales, which contributes to the Seedy Peeps association’s revenue. This stream can be used for broader regenerative projects, promotional efforts, or supporting Seedy Peeps initiatives .
• Bank Account for Seedy Peeps: Open a bank account under the Seedy Peeps association to manage this income. Funds in this account could be used to reinvest in the marketplace, fund land acquisitions, or support other cooperative initiatives, creating a collective growth mechanism .
4. Shopify as the Marketplace Platform:
• Centralized E-Commerce Hub: Shopify allows for streamlined product listings, payment processing, and order fulfillment. VPM manages the store’s setup and maintenance on Shopify, providing vendors with a straightforward platform to list and sell their products.
• Efficient Fee Collection and Payout System: Shopify can facilitate fee collection, allowing VPM to automatically deduct a set percentage from each sale, which simplifies distribution of revenues and fees. This setup keeps accounting transparent and straightforward for both VPM and Seedy Peeps vendors.
Operational Workflow
1. Vendor Onboarding:
• Each Seedy Peep vendor submits a W9 and signs a vendor agreement with VPM.
• Vendors receive instructions for setting up their individual pages on the VPM website, and guidelines for maintaining brand consistency across the Seedy Peeps marketplace.
2. Sales and Revenue Management:
• Sales are processed through Shopify, with each transaction automatically deducting VPM’s fee and, if applicable, Seedy Peeps’ percentage.
• Vendors receive regular payouts, and VPM tracks all transactions to issue 1099 forms at year-end.
3. Seedy Peeps Collective Fund Management:
• Funds from the Seedy Peeps percentage are directed into the association’s bank account.
• These funds are allocated to Seedy Peeps projects, reinvested into the marketplace, or reserved for future land trusts, establishing a regenerative cycle of revenue for the association.
4. Tax Compliance and Year-End Reporting:
• At the end of the fiscal year, VPM issues 1099 forms to each vendor based on Shopify’s records.
• Seedy Peeps uses this time to assess the marketplace’s financial health, review vendor contributions, and plan for further expansion.
Benefits of This Structure
• Autonomy and Compliance: Vendors maintain their independence while VPM handles compliance, keeping operations legal and streamlined.
• Shared Revenue: Seedy Peeps generates income through a small percentage from vendor sales, creating a fund that fuels broader regenerative projects and collective goals.
• Easily Scalable: As more vendors join, this structure scales naturally, allowing Seedy Peeps to expand its marketplace presence and influence without additional tax or regulatory burdens.
This strategy positions Seedy Peeps to operate a vibrant, resilient marketplace where each member contributes to the whole, building a regenerative network of support and sustainability. By leveraging VPM’s infrastructure and collective association income, Seedy Peeps can grow as both a digital and real-world ecosystem, rooted in trust, autonomy, and shared purpose.