How to Set Up a Private Membership Association (PMA): Step-by-Step Guide

Key Takeaways

• A Private Membership Association (PMA) operates under the constitutional right to associate freely, though it generally remains subject to laws of general applicability, including public health regulations and professional licensing requirements.
• Setting up a PMA requires clear documentation, including articles of association, bylaws, and membership agreements that establish the private contractual relationship.
• PMAs are explored by health practitioners, educators, clubs, and businesses seeking operational alternatives outside conventional regulatory frameworks.
• Proper PMA establishment creates a private association framework designed to operate under constitutional protections while serving members in accordance with specific principles and standards.
• At The Freedom People, we provide formation services for individuals exploring PMA structures to operate according to their own principles.

What Is a Private Membership Association and Why People Establish Them

For business owners and practitioners navigating complex regulatory environments, a Private Membership Association (PMA) offers an alternative operational structure rooted in constitutional rights. 

A Private Membership Association is a constitutionally protected organization formed under your right to freely associate with others. Unlike public businesses, which must comply with numerous licenses, permits, and regulations, a PMA operates under private contract law between the association and its members. 

This arrangement creates a private community, though courts generally rule that commercial activities offering goods or services to the public—even under the guise of membership—must still comply with government regulations.

This guide covers everything you need to know to set up a Private Membership Association, including tips on creating bylaws and operational frameworks.

The Freedom People: Reclaim Your Freedom Through Education & Structure Empowering Families & Individuals | 5★ Google Rating Operate by Design, Not by Default: Learn how to navigate legal, financial, and administrative systems with intention—not ignorance. Understand natural law vs. statutory law, private vs. public operation, and sound money strategies. Protect your assets, identity, and decision-making through education, not evasion. What You’ll Discover: ✓ Trust structures and asset governance strategies ✓ Bitcoin and alternative payment systems for long-term wealth ✓ Status and standing clarification to reduce regulatory exposure ✓ Private domain operation while engaging public systems strategically Your freedom requires responsibility and structure. Start building both today. Book Your FREE Consultation →

Step 1: Define Your PMA’s Purpose and Structure

Create Your Mission Statement

Your mission statement articulates the core purpose of your PMA and provides direction for all activities and decisions. A compelling mission statement should be concise yet comprehensive, typically between 1–3 sentences that capture the essence of why your PMA exists. 

Focus on the transformation or benefit you provide rather than specific activities or methods, as this creates flexibility in how you fulfill your mission over time.

When drafting your mission statement, consider including: who you serve, what value you provide, how you’re different from conventional options, and why your approach matters.

Establish Membership Requirements

Clearly defining who can become a member of your PMA is crucial for maintaining its integrity and purpose. Your membership requirements should align with your mission while creating appropriate boundaries that distinguish members from the general public. 

Consider factors such as minimum age, agreement with core principles, willingness to abide by association rules, and any specific qualifications relevant to your purpose.

Step 2: Draft Your PMA Declaration and Bylaws

Essential Components of Your Declaration

Your PMA Declaration formally establishes your association’s existence and serves as its founding document. This declaration should include the association’s name, purpose, founding date, and founding members. 

It should explicitly state that the association is being formed as a private membership association under constitutional protections and specify which amendments apply (typically the First, Fourth, Fifth, Ninth, and Fourteenth).

The declaration should also reference the private contractual nature of membership and distinguish association activities from public commerce. 

Crafting Bylaws That Protect Your Association

Your PMA’s bylaws detail how your association will operate and govern itself. Comprehensive bylaws address leadership structure, decision-making processes, membership procedures, dispute resolution, and asset management. 

Key sections to include in your bylaws are: membership qualifications and procedures; rights and responsibilities of members; leadership positions and selection methods; meeting requirements and procedures; financial management protocols; amendment processes; and dissolution provisions.

Membership Agreement Templates

The membership agreement represents the contractual relationship between your PMA and each member. This document should clearly outline what members agree to when they join your association, including acknowledging risks, waiving certain rights to sue, agreeing to abide by association rules, and accepting private dispute-resolution mechanisms.

Your membership agreement should explicitly state that members are voluntarily choosing to participate in a private association outside public commerce regulations.

Step 3: Set Up Your Operational Framework

Membership Application Process

Design a membership application process that emphasizes the deliberate choice to join your private association. Your application should request basic identifying information, along with an explicit acknowledgment of your association’s private nature and your agreement to abide by its rules. 

Include space for applicants to indicate their alignment with your PMA’s values and purpose, reinforcing that membership is not merely transactional but a commitment to a private community.

Consider implementing a multi-step application process that may include an initial application, a review period, an orientation session, and formal acceptance. This deliberate approach strengthens the private association relationship and provides multiple opportunities to ensure applicants fully understand what they’re agreeing to.

Fee Structures That Work

Instead of charging for products or services as a conventional business would, PMAs typically collect membership dues, contributions, or sharing arrangements that support the association’s activities. 

Design a fee structure that fairly distributes the costs of operating your association while avoiding language that suggests payment for specific services. 

Record-Keeping Systems

Develop systems to document all association activities, including membership agreements, meeting minutes, financial transactions, and leadership decisions. Maintain clear separation between association records and any personal or other business activities.

Your record-keeping system should include secure storage for sensitive member information, with appropriate access controls and backup procedures. 

Consider using encrypted digital storage along with physical copies of critical documents stored in secure locations. Comprehensive records provide crucial evidence of your PMA’s legitimate operation should its status ever be questioned.

Step 4: Establish Banking and Financial Systems

PMA-Friendly Banking Options

Finding the right banking solution for your PMA requires research and often some creativity. Some PMAs successfully establish accounts with local credit unions or community banks that better understand the private association model. 

When approaching financial institutions, focus on explaining your association’s legitimate purpose rather than emphasizing regulatory exemptions, which can raise unnecessary concerns.

Consider establishing your banking relationship in your association’s name, with appropriate documentation demonstrating your legitimate organizational structure. 

Managing Member Contributions

Develop clear protocols for handling member contributions that reinforce the private association relationship. Rather than charging for specific services, structure payments as membership dues, donations, gifts, or contributions to the association’s overall mission.

Document all financial transactions meticulously, clearly identifying their purpose and connection to your association’s mission. Implement appropriate financial controls, including regular reconciliation, multiple approval levels for significant expenditures, and transparent reporting to members.

Step 5: Launch Your PMA

Member Onboarding

Create a systematic onboarding process that ensures new members fully understand the nature of your private association and their rights and responsibilities within it. This process should include a thorough review of all membership documents, orientation to association policies, and formal acknowledgment of the private contractual relationship.

Consider implementing a probationary period for new members during which they can learn about the association before full membership is confirmed.

First Association Meeting Essentials

Your initial association meeting establishes important precedents and should be documented thoroughly. This founding meeting typically includes formal adoption of your Declaration and Bylaws, appointment of initial leadership positions, and discussion of immediate priorities. 

Maintain detailed minutes of this meeting as part of your permanent records, as these serve as evidence of your PMA’s proper establishment.

Consider creating a ceremonial element for this first meeting that reinforces the significance of establishing your private association. This might include formal document signing, statements from founding members about their commitment to the association’s mission, or other meaningful rituals that align with your values.

Private Membership Association Formation with The Freedom People

Creating a properly structured Private Membership Association requires attention to detail and understanding of constitutional frameworks. At The Freedom People, we provide PMA formation services including documentation and implementation guidance.

Our Formation Network

With over 460 businesses already in our network and thousands of members on our private platform, we have built a thriving community of organizations operating successfully in the private domain. Our full ecosystem of tools and resources supports business owners long after initial setup, and unlimited text, email, and phone support ensures you always have guidance when questions arise.

What’s Included in Your PMA Setup

For a one-time setup fee of $2,500, The Freedom People provides everything you need to establish your Private Membership Association:

• Articles of Association
• Bylaws
• Membership Terms
• Membership Waiver
• Certification of PMA
• 508(c)(1)(a) setup (Strictly for Churches/Religious Organizations)
• PMA Starter Kit with 18 supporting documents

From start to finish, expect 3–4 weeks to have your documents, EIN, and bank account fully in place.

Schedule Your Discovery Call

Not sure if a PMA aligns with your situation? Schedule a discovery call to understand how a Private Membership Association operates and whether this structure fits your goals.

During this focused conversation, we will walk you through the foundational principles of PMAs, including the constitutional rights and legal precedent that support them, and explore whether this path aligns with your unique business or purpose.

You’ll leave with a clear understanding of:

• What it truly means to operate privately and how it differs from the public system.
• Whether a PMA is the right fit for your goals or business type.
• What it takes to get started and what’s included in the full PMA package.
• What to expect if you choose to move forward.

Schedule a consultation to discuss your PMA formation options.

Frequently Asked Questions (FAQs)

Is a PMA the same as a non-profit organization?

No, a Private Membership Association is distinct from a non-profit organization. While non-profits operate under specific tax codes and typically require government recognition through 501(c) status, PMAs operate under constitutional protections for private association. Non-profits generally operate in the public domain and are subject to significant regulatory oversight, while properly established PMAs operate privately through contractual relationships with their members.

Can my existing business convert to a PMA structure?

Yes, many existing businesses successfully transition to the PMA model, though the process requires careful planning and execution. Rather than simply “converting” your business, you’ll typically establish a new private association entity and then transition your activities from the public business to the private association.

Do I need an attorney to set up a PMA?

While an attorney familiar with Private Membership Associations can provide valuable guidance, many successful PMAs are established without direct attorney involvement. The key is ensuring you have access to proper guidance and documentation that addresses the specific legal requirements for PMAs. 

At The Freedom People, we provide comprehensive resources, including document templates, step-by-step guidance, and implementation strategies for establishing PMAs.

How are PMAs treated for tax purposes?

The tax treatment of PMAs varies based on their specific structure and activities. Most PMAs are subject to taxation unless they secure specific tax-exempt status (like 501(c)). Income derived from providing goods or services is generally taxable, regardless of whether it is called a ‘membership fee’ or ‘donation.’, though this position requires careful implementation and documentation. Some PMAs utilize specific tax designations such as 508(c)(1)(a) or unincorporated association status, while others operate through trust structures.

Can the Freedom People help me set up a PMA?

Yes, at The Freedom People, we provide Private Membership Association formation services, with over 460 businesses in our network. For a one-time fee of $2,500, we provide a complete setup including Articles of Association, bylaws, membership terms, 508(c)(1)(a) setup, and 18 supporting documents.The process takes 3–4 weeks from start to having your documents, EIN, and bank account in place. Schedule a free discovery call to determine if a PMA is right for your situation.