The FAB met today and we spent some time talking to a potential legal representative who will help us with legal side of formation. This the second attorney interviewed, and we are continuing with our due diligence.

Here are some key milestones of the official formation:

Filing articles of incorporation

This is very basic and once filed, we can receive a tax ID number and open a bank account. The bank account will allow us to begin our charter membership drive (more on that soon).

Bylaws

This is probably the biggest part of the incorporation process. The Governance working group has a draft outline, and once ratified by the FAB, the attorneys will convert it into a legally binding document. Our ability to operate as a tax-exempt non-profit trade association is contingent on the content of our bylaws. More importantly, it is what will attract members to the PMA. The FAB will ratify charter bylaws, which we fully expect to evolve as our membership grows and various aspects of our efforts mature.

Tax-exempt status

This is granted by the IRS and is often the most lengthy part of the process. It is a stringent process and can take 3-9 months. However, we can operate as a non-profit entity as soon as we have filed articles of incorporation, and the IRS tax-exempt status is retroactive to our date of incorporation, so we won’t be held responsible for taxes in the interim.

As you can see, there is still work ahead. The working groups have actually done much of the work required in developing the bylaws, and we hope that will help accelerate some of these steps.

Here are some additional milestones:

Establishing charter membership levels and dues

These will be different than the general membership dues, and will be available at a premium, to help us boost our fund raising. The charter members will get, in return for their dues, the ability to vote in the charter board of directors. The FAB has been reviewing many proposals. This has been a very difficult and lengthy process, but we all understand how critical this will be.

Board of Directors makeup

There have been several proposals offered on this topic, and much debate on it too. The makeup of the board will be for the charter board, voted in by the charter members. This board makeup will likely change in the future as the PMA membership evolves.

Selecting legal representation

As mentioned above, we are in the process of due diligence. We want to engage help as soon as we can, so we can officially incorporate.

As we make progress on these issues, I’ll keep you posted.

–Rebecca