Tribal-Owned Business Structuring
An excerpt from the Office of Indian Energy and Economic Development’s ‘Choosing a Tribal Business Structure’:
What is a tribal “business structure”?
Tribal “business structure” refers to the form a tribally (as opposed to an individual) owned business takes and under whose laws it will be organized. Tribal businesses can be formed through a federal charter under Section 17 of the Indian Reorganization Act (IRA), as a corporation chartered under tribally enacted laws, under a state’s incorporation laws, or as a limited liability company (LLC) organized under either a tribal code or state law.
Why is the selection of a tribal business structure important?
Determining whether a tribal business should be organized under tribal, federal, or state law will have consequences with respect to tax liability, preservation of tribal assets, and transparency of corporate information for potential creditors, investors, and joint venture partners, regulators, and customers.
Section 17 Corporations have sovereign immunity which removes any tribal government property and assets from risk during a default.