How does a Private Membership Association (PMA) make your business exempt from federal Income taxes?

In this presentation, Peymon Mottahedeh of Freedom Law School discusses the concept of Private Membership Associations (PMAs), how they are formed, and how various groups and organizations use them. This presentation explores PMA structure, membership requirements, examples of PMAs in education, health practices, social clubs, and advocacy organizations, along with common misconceptions about how PMAs function.

Peymon also reviews the constitutional foundations often cited for PMAs, including freedom of association and private contracts, and examines how PMAs differ from traditional businesses or nonprofits. The video highlights potential pitfalls when PMAs are improperly structured, why some marketed PMA setups may not meet legal standards, and what proper operation is supposed to look like.

Additional topics covered include Freedom Law School’s perspective on taxation, voluntary compliance, and IRS procedures.