Q&A: Changing Taxable Designation?

Q I have a question. Although we are a cooperative (in the state of Florida), we  are a "For Profit" corporation. Is it possible to change to a "Not for Profit"  corporation? And what does that require?  

 —Converting in Coral Gables  

A “A cooperative association may be either a 'for-profit' or a 'not-for-profit'  corporation,” says Shari Wald Garrett, an attorney at the law firm of Hyman & Mars LLP in Miami.  

 “Specifically, pursuant to Fla. Stat. §719.103(2), a cooperative association is defined as 'the corporation for profit  or not for profit that owns the record interest in the cooperative property or  a leasehold of the property of a cooperative and that is responsible for the  operation of the cooperative.'  

 “While appearing to be a simplistic inquiry, this question is extremely complex.  Specifically, in order to “change” to a “Not For Profit Corporation,” there would have to be a thorough review of the Articles of Incorporation and  the bylaws of the association, which can be completed by association counsel;  however, the transition would more than likely require consultation with a tax  attorney. Moreover, there may not be a tax benefit in doing so.  

 “After such consideration, if it is deemed beneficial, the Articles of  Incorporation and the bylaws could be amended, as necessary, by the requisite  vote provided for in the cooperative’s controlling documents.