Merchant Processing Lesson 1: Understanding Credit Card Processing
Course

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 MerchantshipKick 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. 9 sections
|
|||||||||
|
2. Public vs. Private Commerce EssentialsBreak 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. 9 sections
|
|||||||||
|
3. Why Leave the Public: Risks and RewardsDig into the vulnerabilities of public business structures—lawsuits, audits, and heavy taxation—then contrast them with the protective advantages of becoming a private merchant. 9 sections
|
|||||||||
|
4. UBOT Unveiled: Definition, Law, and ComparisonsDefine 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. 9 sections
|
|||||||||
|
5. Trust Roles and the Two-of-Three RuleClarify 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. 9 sections
|
|||||||||
|
6. Drafting and Notarizing the Declaration of TrustWalk through naming the trust, setting jurisdiction, leaving the EIN blank, and notarizing the document to bring your UBOT into lawful existence. 9 sections
|
|||||||||
|
7. Obtaining and Linking the EINFollow 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. 9 sections
|
|||||||||
|
8. Funding the Trust and Issuing CertificatesLearn permissible asset types, lawful conveyance methods, and how to issue trust certificates that document beneficiary interests. 9 sections
|
|||||||||
|
9. Banking, Credit, and Multi-Trust StrategiesDiscover 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. 9 sections
|
|||||||||
|
10. Master Checklist and Course Wrap-UpReview 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. 11 sections
|
|||||||||||
|