If you’re still on the fence about DAOs, then we’ve got just the thing for you. Here are five notable benefits of starting a DAO LLC in Wyoming.
While it may seem complicated to newcomers, setting up a DAO LLC is actually quite easy. Starting a DAO LLC will be very different from starting a regular DAO. Since we hate sounding like a broken record, it bears repeating that a DAO LLC will follow an LLC business model for most purposes. In the DAO context, a document draft would start with creating the Articles of Organization.
LLCs, while they are popular in their own right, are even more appealing when they are part of a DAO (Decentralized Autonomous Organization). The members of the organization decide how it is run, rather than partners or owners. Since a DAO does not have owners or partners to take the blame for any legal troubles, a DAO can protect your assets from such issues. If the organization gets sued, for instance, its members’ assets won’t be affected.
Like Articles of Organization, a DAO LLC’s taxes will be handled similarly. LLCs avoid double taxation; the company and its members aren’t taxed separately. An LLC structure means members only have to fill out paperwork once. This is great since it can save you time, money, and effort. Since DAOs in Wyoming will follow the LLC structure, the taxes will follow the standard LLC structure. This is a major plus because other DAOs are presently (as of March 2022) in a gray area when it comes to paying taxes since they don’t fit cleanly into the corporation or partnership categories. Wyoming’s new legislation makes this non-issue for DAO LLCs.
A decentralized autonomous organization is able to run by itself. It makes its own decisions, regulates itself, and is self-sufficient. When it comes to decision-making, there is no one single person or group of persons that does this. Instead, it’s up to the members of the organization. Each member has a say through a vote.
We hope this article proves to be useful when it comes to helping you gain a better understanding of DAOs. As you can see, there are a slew of different benefits attached to forming a DAO. While you may still be hesitant due to how unfamiliar you are with the technology and how it works, the benefits alone should be enough to warrant consideration. BE sure to keep everything you’ve learned here in mind so that you can make the most informed decisions for your business.
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