Understanding Lawful Structures: PMA, Church, and Trust

Introduction

• Lecture covers the complexities of lawful structures: Private Membership Association (PMA), Church, and Trust.
• Discussion on how these structures can be used in connection with each other.

Private Membership Association (PMA)

• Definition: An agreement between individuals to interact privately, away from public jurisdiction.
• Benefits:
  • Eliminates need for licensing and regulatory oversight.
  • Allows clear definition of member interactions.
  • Creates a distinct entity that can function as a trustee or beneficiary of a trust.
  • Can serve as a container for church congregation.
• Tax Considerations: Not a tax shelter. Federal Reserve notes used in exchanges still taxable.

Church Structure

• IRS Requirements for Tax Exemption:
  • Must be a distinct legal entity with a mission statement.
  • Needs a recognized creed, form of worship, and ecclesiastical government.
  • Must have regular congregations, services, and ordained ministers.
• 501(c)(3) Tax Status:
  • Earnings cannot benefit private individuals.
  • Limitations on political campaign contributions.
• 508(c)(1)(A) Tax Status:
  • Offers more freedom; no application needed if requirements are met.
  • Mandatory exceptions for churches.
  • Must still adhere to IRS definition of a church.

Trust Structure

• Functionality:
  • Can act as a natural person with capabilities similar to individuals.
  • Can establish PMAs or churches and open bank accounts.
• Purpose: Ideal for long-term organizational structures and legacy planning.

Interaction Between Structures

• Church as an Umbrella:
  • Can hold PMAs and trusts within its structure.
  • Trusts manage resources; PMAs define congregation.
• Trust as an Umbrella:
  • Can establish churches and PMAs within its structure.
• PMA as Trustee or Beneficiary:
  • Can serve as a trustee or beneficially for trusts and church congregations.

Additional Recommendations

• Acquire EIN for each structure and open bank accounts.
• Redeem and demand lawful money in banking interactions.
• Refer to the Outer Sovereignty Starter Kit for more information on jurisdiction and lawful money.

Conclusion

• Explore lawful structures to achieve organizational goals and tax benefits while complying with legal definitions and requirements.