How to Choose the Right Indigenous Business Entity in ARNA

A Practical Guide Based on Function, Jurisdiction, and Use

Choosing a business entity within ARNA (the Aboriginal Republic of North America) is not a cosmetic or branding decision. It is a jurisdictional, functional, and strategic determination that affects liability, taxation posture, banking, estate planning, and long-term continuity.

Many people approach entity selection with assumptions formed under state corporate systems or incomplete internet guidance. Within ARNA, those assumptions frequently lead to misalignment.

This guide explains how entity selection is actually determined within ARNA, based on what the entity is meant to do, not what it is called.

Start With Function, Not Labels

The first question is never “Which entity sounds best?”

The correct starting questions are:

  • What activity will this entity perform?

  • Will it hold assets or only operate?

  • Is the activity commercial, ministerial, or administrative?

  • Is licensing required?

  • Is the entity intended to be temporary or enduring?

Every entity within ARNA exists to serve a specific function. When function is misunderstood, structure fails.

Core Indigenous Entity Types Used in ARNA

Below is a comprehensive overview of all primary entity types used within ARNA governance and economic practice, including distinctions reflected in the draft guide.

508(c)(1)(A) Tribal Faith-Based Organization (FBO)

Primary function:
Governance, ministry, education, and community service

Used for:

  • councils and ministries

  • cultural and educational programs

  • donation-based activity

This entity serves as an ecclesiastical and jurisdictional anchor.
It is not used for private business operations or asset holding for personal commerce.

Tribal Unincorporated Association (UA)

Primary function:
Independent operations under Indigenous jurisdiction

Used for:

  • consultants and service providers

  • early-stage or low-overhead activity

  • sole-administrator operations

A UA may:

  • operate with one or multiple administrators

  • require a county-filed DBA for banking or public commerce

When operated by a single administrator, a UA may use sole-proprietor tax reporting, though the UA itself remains the entity.

Partnership (General or Indigenous Partnership)

Primary function:
Joint operations between two or more parties

Used for:

  • shared ventures

  • collaborative service offerings

  • temporary or project-based activity

Partnerships define:

  • shared authority

  • shared responsibility

  • shared profit and loss

They are selected when collective operation, not individual control, is intended.

Holding Company

Primary function:
Asset ownership and separation of risk

Used for:

  • owning intellectual property

  • holding equipment or accounts

  • separating ownership from operations

Holding companies do not operate.
They exist to own and control, not transact.

Tribal LLC (Tax-Exempt LLC)

Primary function:
Operational activity under Indigenous jurisdiction

Used for:

  • structured operations

  • internal commerce

  • liability separation

A Tribal (Tax-Exempt) LLC:

  • is not registered with the state

  • operates under Indigenous jurisdiction

  • may be paired with a holding company for banking

This structure is chosen when formal operations are required without defaulting to state jurisdiction.

Standard (State-Registered) LLC

Primary function:
Licensed or regulated activity

Used for:

  • regulated industries

  • professional licensing

  • public or governmental contracts

A Standard LLC is used only when required by the nature of the activity.
ARNA does not default to state entities unless necessity dictates.

Indigenous Irrevocable Trust

(ARNA Nationals & IPA Members Only)

Primary function:
Estate protection and long-term asset stewardship

Used for:

  • protecting qualifying assets

  • preserving estate intent

  • ensuring continuity

This trust is not a business entity and is governed by ARNA National Jural Society enactments. Eligibility is limited and intentional.

Why These Distinctions Matter

Problems arise when:

  • operating entities hold long-term assets

  • trusts are used for commerce

  • tax posture is mistaken for structure

  • state entities are used unnecessarily

ARNA’s framework separates:

  • operation

  • ownership

  • protection

This separation is deliberate and foundational.

The Role of Jurist Review

Entity selection within ARNA is not self-certifying.

Jurist review ensures:

  • correct jurisdictional placement

  • eligibility verification

  • alignment with ARNA enactments

  • coordination with estate planning

This process protects both the individual and the integrity of the system.

Join the Conversation

Entity selection is one of the most consequential decisions in Indigenous economic participation.

We invite informed discussion.
If this guide clarified distinctions you were previously taught differently, share your experience or questions in the comments.

Reflection prompt:
Which entity distinction was least explained to you before, and why do you think that gap exists?

Learn More

For deeper reference, review the following resources:

📄 Choosing the Right Indigenous Business Entity
📄 Entity Structure vs Tax Reporting: A Simple Guide
📄 Indigenous Economic & Estate Structure Overview

All materials are available in the Indigenous Legal & Economic Resource Library.

This article is educational in nature and does not replace individualized jurist review, ARNA determinations, or formal business documentation.

Previous
Previous

ARNA Estate Planning

Next
Next

Entity Structure vs. Tax Reporting in ARNA