What Is a Tribal LLC?
Just like each state has the power to issue corporations and limited liability companies (LLCs) to individuals, a Native American Indian tribe also has the ability and authority to issue corporations and LLCs to individuals. A company that a Native American Indian tribe issues is officially known as a Native Business Enterprise (NBE), but to make them easier to understand to the average businessperson, I like to call them Tribal LLCs. So, to answer the question, What is a Tribal LLC? It is an LLC or corporation issued to an individual by a Native American Indian tribe.
To be clear, the sovereignty of an Indian tribe does not pass along to any LLCs it issues, nor does it makes you immune to lawsuits; it just makes it a lot more difficult to be sued. One of the reasons is because, before someone can sue you in Tribal court (assuming they even get that far), they have to be licensed to practice law in that tribe. But most tribes are too small to have more than one or two lawyers on call, and they’ll likely be working for the benefit of the Tribal LLCs. It’s like a lawyer being licensed to practice law in one state but not another. Then if someone makes it that far, the trial would still be under tribal law, not state law.
Tribes have what is called “Tribal Sovereignty,” and this sovereignty is at least as strong, if not stronger, than the sovereignty of a U.S. state. Since states have the authority to create LLCs, it stands to reason that the Tribes naturally have the right to create LLCs as well.
Tribes can delegate management of a Tribal LLC to a non-Tribal member. Consider Tribal casinos for example. They are almost always managed by non-Tribal members. The NBE that you obtain is your business. The tribe will not be involved in any way to micromanage your business nor be responsible for its debts or obligations.
Interested in a Tribal LLC? Let’s Talk.
If you already know what an LLC is, then by now you also know what a Tribal LLC is. What you might not still fully grasp is how well a Tribal LLC can protect your assets compared to any other asset protection tool out there. After reviewing the information on this website, if you are ready to move forward with creating a Tribal LLC or want to visit in person to learn if a Tribal LLC will suit your needs, call 239-649-8050 or contact us online to book your consultation with attorney Marc Shapiro, a respected and trusted legal advisor who has probably spent more time thinking about and researching Tribal LLCs for asset protection than just about anybody else on the planet.
