"Anyone may arrange his affairs so that his taxes shall be as low as possible. He is not bound to choose that pattern which best pays the Treasury. There is not even a patriotic duty to increase one's taxes. Over and over again the courts have said that there is nothing sinister in so arraigning affairs as to keep taxes as low as possible, everyone does it, rich and poor alike and all do RIGHT, for nobody owes the public duty to pay more than the law demands." Weeks v Sibley; Edwards v. Commissioner; Helvering v. Gregory, and 60 Federal 2nd 809, Judge Learned Hand.

This information will help you understand what an unincorporated Business Trust, also known as a pure business Trust, is in comparison to other types of businesses, i.e. corporations and L.L.C.'s. A pure business Trust can operate as any type of business, from service to retail, manufacturing to investment, management, and holding companies. The following U.S. District and Supreme Court rulings, and other legal cites, will help explain what a pure business Trust is in legal respects:

"A Pure Trust is a contractual relationship in trust form." - Berry v. McCourt, 204 North Eastern Reporter 2d 235.

"It is established by legal precedent that business pure trusts are lawful, valid business organizations." - Baker v. Stern, 58 American Law Reports, 462.

"A business trust is a common law entity formed by contract, and thus, is not subject to the same types of state regulation as a corporation." - Elliott v. Freeman, 220 US 178; and Crocker v. Malloy, 39 US 270.

"The business trust also called common-law trusts, are created under the common law of contracts and do not depend upon any statute." - Schuman-Heink v. Folsom, 159 NE 250.

"A pure trust is not subject to legislative control. The U.S. Supreme Court holds that the trust is created and its relationship comes under the realm of equity based upon the common law and is not subject to legislative restrictions as are corporations and other statutory entities or organizations created by legislative authority." - Croker v. MacCloy, 649 US Supp 39; and Elliott v. Freeman, 220 US 178.

"One of the objectives of business trusts is to obtain for the trust associates, most of the advantages of corporations, without the authority of any legislative act and with the freedom from the restrictions and regulations generally imposed by law upon corporations." - 13 Am Jur 2d, Page 379, Paragraph 51.

A business trust may be organized to engage in any business in which individuals or corporations may lawfully engage. As described in: Wagner Oil and Gas Co. v. Marlow, 278 Pacific Reporter 294, 137 Oklahoma 116; Weber Engine Co. v. Alter, 245 Pacific Reporter 143, 120 Kansas 557; and 46 American Law Reports 158.

The Trust Identification Number, T.I.N. that can be issued for each separate pure business Trust shall not be considered as a Tax Identification Number (TIN), or Employee Identification Number (EIN). As you can see, from the above cited authorities, that a pure business Trust, as a business, is not subject to any taxation of the United States, including but not limited to any "State of" territory of District of Columbia. The following Court rulings will also affirm this fact:

"A pure trust is not illegal if formed for the express purpose of avoiding taxation." - Weeks v. Sibley, (D.C.) 269 F. 155.

"Dignity of contract cannot be set aside because a tax benefit results either by design or accident." - Edwards v. Commissioner (IRS), 415 F. 2d 578, 582, 10th Cir.

From The Department of the Treasury, IRS Handbook for Special Agents p. 412; Tax Avoidance Distinguished from evasion, states:

"Avoidance of taxes is not a criminal offence. Any attempt to reduce, avoid, minimize, or alleviate taxes by legitimate means is permissible."

While the IRS legally recognizes on the one hand everyone's protected right to arrange ones affairs to minimize tax liability, on the other hand, Agents of the IRS will do everything in their power (which is limited by law) to dissuade anyone from actually asserting that right.

FEAR and IGNORANCE are the allies used most by the agents of the IRS in their attempt to prevent the people from asserting their right to privately contract.

Regardless, it is quite clear, the courts and the IRS agree that all have the right to take whatever action one desires to minimize creating a tax liability. Many more Court case cites are available for understanding the legal and lawful position that a business Trust is at in regards to State and Federal jurisdiction. Business Trusts are contractually created under the jurisdiction of American Common Law of united States of America. Common law Business Trusts are foreign to "United States" and its "State of" territories, whereas "domestic" U.S. corporations, etc., are created under specific (federal) State or Federal Statutes. Corporations may also be created under one of the specific laws of the several 50 states and be considered foreign to other states as well as the Federal Government.