Wyoming DAO LLCs

Are you looking to form a DAO?


A decentralized autonomous organization, or a “DAO,” is a Blockchain based “organization” encoded as a transparent computer program, controlled by the organization members rather than by any outside entity or authority.


Without incorporating a DAO looks like a Club or Partnership ie an unincorporated association wherein each of the members is jointly and severally liable in the event that the DAO is successfully sued pr incurs some other liability.


In order to ensure that the members can avoid personal liability – and so that the liability of the group collectively might be Limited – it is submitted that the preferred legal structure for most DAOs would be to incorporate as a Company.


Why Incorporate a DAO LLC?


It is anticipated that most DAOs will want to incorporate as a Company. As things presently stand the Wyoming DAO LLC would appear to be the most flexible vehicle for such purposes.


A DAO LLC is a type of limited liability company (LLC) in which there is no single commanding body behind decisions. All decisions are made by majority vote by either those who have invested in the organization or through a computer algorithm, depending on the type of DAO. A DAO effectively runs itself based on a set of rules that are implemented upon its creation and then updated by either stakeholders of the organization or by an algorithm over time.


A DAO completes actions through a series of “smart contracts”, which are different from traditional legal contracts in that they exist and operate autonomously through the internet without need for manual human action. Despite this autonomy, there are still some actions a DAO cannot complete autonomously, for example some interactions with the legal system.


This autonomous action allows for a DAO system to operate outside of the administrative structure of a traditional organization. Instead of top-down management, every member has an equal part in deciding the action of the organization, or all management can be conducted by a computer program outside the control of the establishing party. In either case, no single person or party makes decisions within the DAO.


This has both advantages and disadvantages in the efficiency of decision making. Being more responsive to the needs of stakeholders is a common advantage when a DAO is managed by a group, but is often met with potential for less-informed and slower changes. When managed by an algorithm, it is possible for mistakes to be made that a human would not, but this often comes with the benefit of increased objectiveness and success-oriented action. It is important to note that although a DAO LLC is technically still an LLC, the operations of the two vary drastically in practice.


Creation of a DAO LLC


A DAO LLC is formed very similarly to a traditional LLC, with the primary difference being the two new steps of establishing the rules behind the DAO and funding the DAO prior to it becoming operational.


Establishing the rules involves deciding how the DAO will operate at the time of the formation and, although this can be changed later on, doing so often involves significant action from stakeholders.


Funding the DAO involves creating a token which represents and tracks the investments of stakeholders in the DAO, and is a way for stakeholders to participate in and influence the actions of the DAO.


DAO’s are not controlled by any single entity; although there must be an entity to create the DAO, this founder does not control the DAO after its creation. Although it is common for the founder of a DAO to participate in said DAO by contributing to the initial funding, this is not necessary. It is possible for a founder to create a DAO, but have no part in the management of said DAO following its creation.


Because DAO’s rely heavily on the initial ruleset implemented during formation, it is extremely important that the code behind this rule set is carefully written and that all potential bugs and security flaws are fixed before the system is deployed. Having a strong initial base for the DAO is essential to the success of the DAO moving forwards.


OCI Wyoming DAO LLC Formation Services


Decentralized autonomous organizations are completely legal, however as with all new technologies, DAO’s are subject to significant changes in regulation. Current Wyoming legislation under Bill-SF0038 (effective 07/01/2021) dictates that the management of a DAO LLC has many of the same requirements of traditional LLC’s, with some additional criteria for the more complex management structure and backend required for its operation.


A Wyoming DAO LLC can be formed quickly, correctly and inexpensively.  We charge $US1,500 and it includes the following:

  • Option To Select Member Managed or Algorithmically Managed Structure
  • Inclusion of Publicly Available Identifier of Any Smart Contract Directly Used to Manage, Facilitate, or Operate the DAO in Articles of Organization As Required by Law
  • Anonymous Filing of Articles of Organization Which Meet All Legal Requirements
  • For Member Managed DAO, Operating Agreement Which Meets All Legal Requirements
  • Resignation of Organizer Document
  • 1st Year of Registered Agent Services As Required By Wyoming Law
  • 5 Pieces of Mail Scanning
  • Free Use of Our Address


NOTE: This option should ONLY be used by seasoned blockchain entrepreneurs with prior experience creating DAOs and Smart Contracts who are seeking to add the protections of Wyoming limited liability protections.


Would you like to know more? Then please Contact Us:














DISCLAIMER: OCI is a Company/Trust/LLC/LP/Foundation Formation Agency. We are not tax advisers or legal advisers. You are advised to seek local legal/tax/financial advice in regards to your local reporting/tax requirements before committing to set up or use an Offshore Company or other entity.