Choosing a Tribal Business Structure

A tribally owned business is different than a business owned by a member of a tribe.

There are specific forms of tribal business structures that tribes can take advantage of when establishing their business under tribal, federal, or state law.

When a tribe incorporates, it will need to determine the structure that their tribally owned business adopts and under whose laws it will be organized.

A tribally owned business can be formed as an Indian Reorganization Act (IRA) Section 17 corporation, a tribally chartered corporation, or a state-chartered tribal corporation.

Each structure has different consequences in terms of tax liability, preservation of tribal assets, and corporate transparency requirements for potential creditors, investors, partners, regulators, and customers.

We advise that tribes consult an attorney for specific legal guidance on which corporate structure will best suits their needs and circumstances.