Private Membership Association

1. Private Contracts

• Membership in a PMA is based on a private contract between members and the organization.
• These contracts define the rights and responsibilities of the members and the association, typically governed by the principles of contract law.

2. Non-Public Operations

• PMAs are not subject to many public regulations or laws that apply to public entities because they operate in the private domain.
• They rely on constitutional protections, particularly the First and Fourteenth Amendments, which safeguard the right to freely associate.

3. Purpose and Activities

• PMAs can be created for various purposes, such as religious, educational, medical, social, or business activities.
• Examples include health and wellness practices, education groups, spiritual assemblies, or member-only buying clubs.

4. Exclusivity

• Membership is typically restricted to individuals who agree to the terms of the PMA’s governing documents.
• The activities and benefits of the PMA are available only to its members, not to the general public.

5. Legal Protections

• PMAs often claim protections under constitutional rights, such as freedom of speech, religion, and association.
• They can operate without certain licenses or oversight required of public businesses, as long as they maintain their private status and do not harm public interest.

6. Self-Governance

• PMAs establish their own rules, bylaws, and procedures, which members must agree to follow.
• They are typically governed by a board of directors or another leadership structure defined in their organizing documents.

7. Limited Government Interference

• As private organizations, PMAs are not generally subject to the same level of government regulation as public entities.
• However, they must operate within legal boundaries and cannot engage in activities that violate criminal laws or harm non-members.

A PMA can be beneficial for many types of businesses and organizations that want to operate privately, avoid government interference, and serve only a select group of members. If you want to operate privately, free from government oversight, a PMA may be the best structure. PMAs are not businesses—they are private associations based on membership agreements. You must keep operations PRIVATE—no public advertising or open business transactions. PMAs work best when serving a niche community with exclusive services.

Below are the top industries and business types that benefit from a PMA structure:

1. Holistic Health & Wellness Services

Why a PMA?
Avoids government regulations on alternative medicine and natural health practices.
Provides private, members-only health services without needing state licenses.
Protects practitioners from legal challenges related to medical oversight.

Examples:
✔ Naturopathic and Alternative Medicine Practitioners
✔ Holistic Healing (Reiki, Acupuncture, Herbal Medicine)
✔ Health Coaching & Wellness Consulting
✔ Private Medical Associations (Non-Mainstream Healthcare)
✔ Nutritional Counseling & Supplement Providers

Example Scenario:
A holistic health coach provides private health advice to members without needing a medical license because their services are offered exclusively to members under a PMA.

2. Homeschooling, Private Education and Tutoring

Why a PMA?
Avoids government regulations on private education and curriculum requirements.
Allows parents and educators to teach without government oversight.
Provides an exclusive learning community based on customized curriculums.

Examples:
✔ Homeschool Co-Ops & Private Learning Groups
✔ Alternative Education (Montessori, Classical, Unschooling)
✔ Faith-Based or Religious Schools
✔ Trade Schools & Skill-Based Training Programs
✔ Private Tutoring Centers

Example Scenario:
A homeschool cooperative runs under a PMA, allowing parents and teachers to educate children without state intervention while maintaining full control over their curriculum.

3. Private Social Clubs & Exclusive Networks

Why a PMA?
Allows members-only gatherings without public licensing.
Enables private discussions, networking, and business transactions.
Shields activities from public legal challenges.

Examples:
✔ Private Social Clubs (Wealth, Business, or Fraternal Organizations)
✔ Men’s & Women’s Clubs
✔ Private Networking & Mastermind Groups
✔ Members-Only Business Associations

Example Scenario:
A private business network operates under a PMA, allowing members to share investment opportunities without regulatory oversight.

4. Private Security, Training, & Tactical Services

Why a PMA?
Avoids licensing and registration required for public security firms.
Protects members’ privacy and rights regarding self-defense training.
Allows private gun clubs or training facilities to operate legally outside public rules.

Examples:
✔ Private Firearms Training & Tactical Defense Schools
✔ Members-Only Gun Ranges & Shooting Clubs
✔ Private Security Training Programs
✔ Martial Arts & Self-Defense Schools

Example Scenario:
A firearms instructor runs tactical training classes exclusively for PMA members, bypassing public licensing restrictions.

5. Spiritual & Religious Organizations

Why a PMA?
Protects freedom of religion and belief systems.
Operates independently of state and federal church regulations.
Allows for alternative spiritual practices without government control.

Examples:
✔ Private Churches, Ministries, & Fellowship Groups
✔ Spiritual Healing & Energy Work Communities
✔ Religious Study Groups & Bible Colleges

Example Scenario:
A faith-based community organizes under a PMA, allowing them to practice their beliefs without government interference.

6. Natural & Organic Food Providers

Why a PMA?
Avoids FDA, USDA, and other food regulations.
Provides private food access to members only.
Protects small farms, co-ops, and natural food sellers from legal action.

Examples:
✔ Private Food Co-Ops & Buying Clubs
✔ Organic & Raw Dairy Providers (Raw Milk, Eggs, Meat)
✔ Private Farmers Markets & Homesteading Groups
✔ Community-Supported Agriculture (CSA) Programs

Example Scenario:
A private farm club provides raw milk and fresh produce only to its members, avoiding public food regulations.

7. Financial & Investment Consulting

Why a PMA?
Protects financial discussions and private investment strategies.
Shields members from SEC and banking regulations.
Enables private wealth-building strategies.

Examples:
✔ Private Investment Clubs
✔ Crypto & Decentralized Finance (DeFi) Groups
✔ Members-Only Financial Education Programs
✔ Alternative Banking & Private Wealth Systems

Example Scenario:
An investment group operates as a PMA, allowing members to share financial strategies without public regulatory oversight.

8. Private Trade & Skilled Labor Groups

Why a PMA?
Bypasses contractor licensing laws for members-only services.
Allows private businesses to operate outside of public regulations.
Offers a barter-based or private economy system.

Examples:
✔ Private Handyman, Electrician, or Carpentry Services
✔ Members-Only Auto Repair Shops
✔ Private Mechanics & Restoration Shops
✔ Holistic Construction & Off-Grid Building Groups

Example Scenario:
A skilled trades PMA offers home repair services only to members, avoiding contractor licensing requirements.

9. Private Coaching & Consulting Services

Why a PMA?
Avoids government certification/licensing requirements.
Provides private advice, mentorship, and training.
Operates outside of professional regulatory boards.

Examples:
✔ Life Coaching & Personal Development
✔ Business & Leadership Consulting
✔ Relationship & Marriage Coaching
✔ Alternative Mental Health Counseling

Example Scenario:
A private life coach provides counseling services under a PMA without needing state mental health licensing.

10. Private Housing, Real Estate, & Property Management

Why a PMA?
Creates exclusive, members-only housing agreements.
Avoids tenant-landlord legal disputes.
Establishes off-grid living communities without local zoning interference.

Examples:
✔ Private Housing Cooperatives
✔ Off-Grid & Sustainable Living Communities
✔ Private Real Estate Investment Groups

Example Scenario:
A private housing PMA provides off-grid rentals only to members, avoiding public landlord-tenant laws.

Setting up a PMA requires careful planning to ensure it remains private, legally sound, and protected. Here are some key considerations you should keep in mind when establishing your PMA:

1. Legal Structure & Private Standing

• Not a Business or Corporation – A PMA is not a legal entity like an LLC or nonprofit. It is a private contract-based organization operating under common law principles.
• Keep All Operations Private – Do not mix public and private activities (e.g., do not advertise PMA services to the general public).
• Clearly Define Membership Requirements – Only members can access services, resources, and events.

2. Documentation & Agreements

Ensure you have ALL the necessary documents, including:

• Articles of Association – Establishes the PMA’s purpose and governance.
• Membership Agreement – Defines rights, responsibilities, and terms.
• Bylaws – Outlines operational procedures and decision-making.
• Liability Waiver & Hold Harmless Agreement – Protects against lawsuits.
• Non-Disclosure Agreement (NDA) – Keeps information confidential.
• Code of Conduct – Ensures ethical behavior among members.
• Financial Agreement – If your PMA collects membership dues or donations.

Tip: Keep all signed documents in a secure file for legal protection.

3. Membership Process & Exclusivity

To maintain the private status of your PMA, follow these rules:

• Membership must be by invitation or application ONLY – Do not openly recruit or market to the public.
• Use Private Contracts – Ensure all members sign agreements before engaging in PMA activities.
• No Public Business Transactions – Services must be provided only to members, not to the general public.

Tip: If you have a website, include a “Members Only” login area to prevent unauthorized access.

4. Protecting Your PMA from Government & Legal Challenges

To prevent interference from public agencies:

• Clearly state that the PMA operates under common law and is NOT subject to government regulation.
• Do not register as a public business (e.g., LLC, corporation, or nonprofit).
• Do not mix public and private activities – No public advertising, licensing, or tax filings under business laws.

Tip: If authorities question your PMA, provide your Declaration of Private Status and Membership Agreement as proof of private operations.

5. Financial Considerations

If your PMA collects membership dues, donations, or contributions:

• Keep finances separate from personal or business accounts.
• Use private banking solutions (e.g., trusts, escrow, or private associations).
• Avoid public financial reporting – PMAs do not have tax-exempt status like 501(c)(3) nonprofits.

Tip: Consult a tax professional to ensure you structure finances properly without violating private status.

6. Handling Disputes & Conflicts

All disputes should be handled privately within the PMA, not in public courts:

• Use an Internal Mediation Process – Define how conflicts are resolved in the Bylaws.
• Require a Binding Arbitration Clause – Prevents members from suing the PMA publicly.
• Make Members Agree to Internal Governance – All members should acknowledge that they waive public legal actions.

Tip: A well-written Dispute Resolution Policy helps protect the PMA from lawsuits.

7. Marketing & Communications (Stay Private!)

Do NOT publicly advertise PMA services – This can break the private status.

• Use private invitation-only emails, word of mouth, or secure member platforms.
• If you have a website, do not list services publicly – Use a “Members Only” area.
• Clearly state that “All services are available ONLY to members of [PMA Name]”.

Tip: If using social media, only share educational information and direct people to apply for membership privately.

8. Registering or Not Registering (Keeping It Private)

Do NOT register your PMA as a business entity (LLC, corporation, etc.), or it will lose its private status.

• Operating as an Unincorporated Private Association keeps it under common law.
• If desired, a PMA can be placed under a Private Trust for additional protection.

Tip: Some PMAs do get an EIN for private banking but do NOT file taxes like a business. Consult an expert before doing this.

9. Keeping Proper Records (Internal Only)

Your PMA should maintain the following records:

• Membership Applications & Agreements – Keep signed copies.
• Board Meeting Notes & Decisions – Keep internal documentation.
• Financial Records (If Collecting Fees/Dues) – Maintain clear financial transparency within the PMA.
• Incident Reports (If Any Issues Arise) – Helps resolve disputes internally.

Tip: Even though your PMA operates privately, keeping organized records can protect you from legal challenges.

10. Final Steps Before Launching Your PMA

• Draft and sign your PMA foundational documents.
• Set up a secure way to collect membership dues (if applicable).
• Create a private website or communication platform for members.
• Ensure all services are provided only to members.
• Keep a strong dispute resolution policy in place.
• Review all steps with a private legal consultant (optional but recommended).

Tip: Launch with a small group of trusted members first, then expand through private invitations.

Final Thoughts: Why a PMA is a Powerful Structure

• Total Control – No government interference when properly structured.
• Legal Protection – Operates under private contract law, not statutory law.
• Privacy & Security – Keeps activities and transactions confidential.
• Member Benefits – Allows for exclusive, high-trust communities.

Having clear documentation protects your PMA’s private legal standing and reduces liability risks. These sample templates provide a solid foundation for Operating Policies within your PMA. Modify them to reflect your specific goals, jurisdiction, and operational needs. These documents should be signed and kept on file to ensure all members and officers are accountable.

We recommend that you consult with a lawyer who specializes in forming PMAs and understands the legal intricacies involved.

Charter – This is the founding document that creates the private membership association and is often required for formal recognition.
Articles of Association – Defines the purpose, structure, and governance of the PMA.
Membership Agreement – Outlines the rights and responsibilities of members.
Bylaws – Details the internal rules, decision-making processes, and operational procedures.
Liability Waiver & Hold Harmless Agreement – Protects the PMA and its members from legal liability.
Declaration of Private Status – Affirms that the PMA operates in the private domain and is not subject to public law.
Operating Policies – Covers dispute resolution, financial handling, and ethical guidelines.
NonDisclosure Agreement – Ensures that members do not disclose internal affairs, strategies, or proprietary methods to non-members.
Code of Conduct – Ensures members assume personal responsibility for their actions and choices.
Membership Invitation – This formalizes the invitation process and keeps membership private and exclusive.

Not every PMA will need all of these additional documents—choose based on your specific activities and risk factors. All of your PMA documents should be signed and kept on file to ensure all members and officers are accountable.

Membership Application Form – allows potential members to formally apply for membership.
Medical Disclaimer (For Health & Wellness PMAs) – Helps prevent liability lawsuits.
Financial Agreement (For PMAs with Fees, Dues, or Contributions) – Outlines how funds will be used for the benefit of the members.
Trustee or Officer Agreement – Clarifies roles, duties, and responsibilities.
Event Waiver & Release (For PMAs Hosting Events, Retreats, or Workshops) – Protects against liability.
Media Release Form (For PMAs that Record or Share Content) – Protects the PMA from legal claims regarding media usage.
Exit Agreement (For Members Leaving the PMA) – Instructions for departing members.
Dispute Resolution Policy Establishes a clear, private, and structured process for resolving disputes within your PMA.

This book goes in depth about PMAs and may offer more insight.

Emergency

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December 9, 2023

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