LLC vs PMA (part 2)

What if I already have an LLC? Could I still utilize a PMA?

Private Domain
September 11, 2024•2 min read

(Part II) What if I already have an LLC? Could I still utilize a PMA?

This is a question I receive often from those wondering if a PMA would work for them if they already have an LLC.

One way I recommend utilizing both is to keep offering services through the LLC initially, but if you like working with them, offer them an opportunity to join as a member of your PMA.

This gives you an opportunity to see if you and your client are aligned in terms of values, goals, and expectations before offering them an opportunity to join your Private Member Association.

If I had an LLC, I would use it to offer services that can be 1 session, such as breathwork, human design readings, iridology readings, etc…and then if they wanted to continue working together (and I felt aligned with continuing to offer my services), I could offer them an opportunity to join a longer program, ex. 6-month transformative journey for self-growth.

In this way, your profits in the public realm of commerce would be kept low - you could still benefit from some of the business deductions when filing taxes and perhaps your taxes owed would be much less as many of your clients turn into members in your PMA.

The LLC can continue to handle all public-facing commercial activities, providing services or products to the general market, and ensuring compliance with all applicable laws and regulations.

The PMA can be used for more exclusive offerings, focusing on specialized knowledge sharing, workshops, or unique experiences that are only available to members. This dual-structure approach allows you to maintain the legal protections and organizational benefits of an LLC while leveraging the privacy and associative benefits of a PMA.

It's important to be transparent with clients about the differences between the LLC and PMA, including the legal implications, the nature of membership, and what they can expect from joining the PMA. This ensures that clients make informed decisions about transitioning from the LLC's services to the PMA's offerings.

Operating both an LLC and a PMA requires careful consideration of lawful and financial structures to ensure that they are distinct entities with clear boundaries. I have a great example of what NOT to do with some experience working with a “PMA” that was attempting to operate in both public and private realms, and was called out on it by a governmental regulatory agency…a story I will share in Part III 😉

Brittney Johnson is a seasoned community builder and specialist in organizational development, deeply committed to fostering environments where trust and transparency are paramount. With extensive experience serving on multiple nonprofit boards and assisting start-up phase purpose-driven communities and brands, Brittney has refined her skills in establishing solid foundations for growth. She has years of experience in helping organizations set up and manage their own Private Trusts, PMAs, and Foundations.

Brit Johnson

Brittney Johnson is a seasoned community builder and specialist in organizational development, deeply committed to fostering environments where trust and transparency are paramount. With extensive experience serving on multiple nonprofit boards and assisting start-up phase purpose-driven communities and brands, Brittney has refined her skills in establishing solid foundations for growth. She has years of experience in helping organizations set up and manage their own Private Trusts, PMAs, and Foundations.

Back to Blog