Hello World

Skip to content
PRIVATE MERCHANT PROCESSING COURSE

Merchant Processing Lesson 1: Understanding Credit Card Processing


Course
Farah Javed
No access code required
Enroll

A step-by-step guide to establishing and managing a Private Unincorporated Business Trust (UBOT) for secure and private merchant processing.

This micro-learning course, 'Merchant Processing Lesson 1: Understanding Credit Card Processing,' introduces learners to the foundational principles and practical steps for setting up a lawful Unincorporated Business Trust (UBOT). Through ten focused modules, participants will explore the differences between public and private commerce, understand the risks and benefits of different business structures, and gain hands-on knowledge in drafting, notarizing, and managing a Declaration of Trust. The course covers how to assign core trust roles compliantly, obtain and link an EIN, fund the trust with various assets, issue trust certificates, open a business bank account, and build business credit. Learners will also discover multi-trust strategies for enhanced privacy and asset protection, culminating with a comprehensive checklist to ensure all steps are completed. By the end, participants will be equipped to lawfully conduct private business, protect assets, and operate outside the public statutory system.

Here is the course outline:

1. Introduction to Private Merchantship

Kick off the course by exploring why entrepreneurs are shifting from public, state-registered entities to private, contract-based commerce. Learners get a high-level view of UBOTs, their constitutional roots, and the big wins—privacy, asset protection, and lawsuit shields—that frame the rest of the lesson.

From Public to Private: Why This Course Matters
Public Commerce in Plain Sight
Private Merchantship: What You Gain
Side-by-Side Comparison Table
Quick Quiz & Reflection Journal
Essay Assessment: Comparing Public and Private Merchantship
Quiz: Introduction to Private Merchantship
Course Project: Comparing Public and Private Business Structures
Group Project: Comparing Public and Private Commerce Paths

2. Public vs. Private Commerce Essentials

Break down the practical differences between operating in the public versus the private domain. Examine registration, regulation, taxation, and liability to see how each pathway affects day-to-day business activities.

Registration & Regulation Checklist
Taxation Touchpoints
Liability & Lawsuits Danger Zone
Daily Operations: Public vs. Private
Decision Matrix: Which Path Fits You?
Essay Assessment: Public vs. Private Commerce Essentials
Quiz: Public vs. Private Commerce Essentials
Course Project: Compare and Choose Your Commerce Path
Group Project: Comparing Public and Private Commerce Paths

3. Why Leave the Public: Risks and Rewards

Dig into the vulnerabilities of public business structures—lawsuits, audits, and heavy taxation—then contrast them with the protective advantages of becoming a private merchant.

Audit & Enforcement Pressures
Lawsuit Stories from the Public Realm
Tax Burden vs. Private Tax Flexibility
How Privacy Converts to Profit
Risk-Reward Scorecard
Essay Assessment: Weighing Public vs. Private Business Structures
Quiz: Risks and Rewards of Public vs. Private Business Structures
Module Project: Public vs. Private Business Structures – Analysis and Scorecard
Group Project: Comparing Public and Private Business Structures

4. UBOT Unveiled: Definition, Law, and Comparisons

Define the Unincorporated Business Trust, trace its legal foundations in common law and Article I, Section 10, and contrast it with LLCs, corporations, and statutory trusts.

UBOT in One Sentence
Constitutional & Common-Law Backbone
Key Case-Law Nuggets
UBOT vs. LLC vs. Corp vs. Statutory Trust
When to Pick UBOT Over Others
Essay Assessment: Demonstrating Understanding of UBOTs and Their Legal Foundations
Quiz: UBOT Unveiled – Definition, Law, and Comparisons
Course Project: Comparing UBOTs and Other Business Structures
Course Project: Comparing Business Structures and Legal Foundations

5. Trust Roles and the Two-of-Three Rule

Clarify the duties of Creator, Trustee, and Beneficiary, and spotlight the compliance rule that no one may hold all three roles—crucial for preserving limited liability and tax advantages.

Meet the Creator
Duties of the Trustee
Rights of the Beneficiary
The Two-of-Three Compliance Rule
Role-Assignment Worksheet
Essay Assessment: Understanding Trust Roles and the Two-of-Three Rule
Quiz: Trust Roles and the Two-of-Three Rule
Course Project: Assigning Trust Roles and Applying the Two-of-Three Rule
Group Project: Proper Role Assignment in a UBOT

6. Drafting and Notarizing the Declaration of Trust

Walk through naming the trust, setting jurisdiction, leaving the EIN blank, and notarizing the document to bring your UBOT into lawful existence.

Naming Your Trust
Setting Jurisdiction & Address
Leaving the EIN Field Blank
Signature & Notarization Walk-Through
Template Review & Common Mistakes
Essay Assessment: Drafting and Notarizing the Declaration of Trust
Quiz: Drafting and Notarizing the Declaration of Trust
Course Project: Draft and Notarize a Declaration of Trust
Group Project: Drafting and Reviewing a Declaration of Trust

7. Obtaining and Linking the EIN

Follow a step-by-step guide to secure an EIN from the IRS, align it with the trust name, and record it in Section 18.3 of the Declaration.

Why the Trust Needs an EIN
IRS Online Application Step-By-Step
Aligning EIN with Declaration of Trust
Recording EIN in Section 18.3
Troubleshooting & FAQs
Essay Assessment: Obtaining and Linking the EIN
Quiz: Obtaining and Linking the EIN for Your Trust
Course Project: Securing and Linking an EIN for Your Trust
Group Project: Securing and Linking an EIN for a Trust

8. Funding the Trust and Issuing Certificates

Learn permissible asset types, lawful conveyance methods, and how to issue trust certificates that document beneficiary interests.

Who Can Be a Beneficiary?
Drafting the Beneficiary Schedule
Permissible Asset Types
Conveyance Tools: Assignment & Bill of Sale
Issuing Trust Certificates
Essay Assessment: Funding the Trust and Issuing Certificates
Quiz: Funding the Trust and Issuing Certificates
Course Project: Funding the Trust and Issuing Certificates
Group Project: Simulating Trust Funding and Certificate Issuance

9. Banking, Credit, and Multi-Trust Strategies

Discover how to open a business bank account, build credit lines under the trust’s EIN, and layer multiple trusts for advanced privacy and asset protection.

Bank Account Prep Checklist
Talking to the Banker: Scripts & Tips
Building Credit: Net-30 to Revolving Lines
Tracking Your Dun & Bradstreet Profile
Multi-Trust Layering for Asset Shields
Essay Assessment: Applying Banking, Credit, and Multi-Trust Strategies
Quiz: Banking, Credit, and Multi-Trust Strategies
Course Project: Simulate Setting Up Banking, Credit, and Multi-Trust Strategies for a UBOT
Group Project: Setting Up a Banking and Credit Strategy for a Multi-Trust Structure

10. Master Checklist and Course Wrap-Up

Review a concise, step-by-step checklist covering every action learned—formation, compliance, funding, banking, and credit—so learners leave with a clear roadmap for private merchant success.

Master Checklist Walk-Through
Compliance Calendar
Measuring Your Private Merchant KPIs
Long-Term Maintenance & Updates
Celebration & Next Steps
Essay Assessment: Applying the Master Checklist for Private Merchant Success
Quiz: Master Checklist and Course Wrap-Up
Course Project: Building and Managing Your UBOT Master Checklist
Group Project: Designing and Managing a Private Merchant UBOT
Glossary
Study guide
Back to top