What Are Private Membership Associations? Benefits For Businesses Explained
Key Takeaways Small businesses face significant regulatory costs annually, with many reporting that compliance requirements hinder growth. Private Membership Associations (PMAs) rely on constitutional protections such as the First and Fourteenth Amendments, potentially allowing certain private, member-only activities with reduced regulatory exposure in specific contexts. Licensed professionals may in some cases serve PMA members under alternative structures, but this does not automatically exempt them from applicable state licensing requirements. Real court cases illustrate how PMAs can function in certain limited contexts - from Texas golf courses serving alcohol in dry counties to Supreme Court decisions affirming business association rights. PMA protection has clear limitations including criminal law compliance, tax obligations, and other applicable legal and regulatory requirements. The crushing weight of regulatory compliance is drowning American small businesses. While large corp...