📜Legal

Benefits of Wyoming DAO LLC

Wyoming changed the game when they gave decentralized autonomous organizations (DAOs) the same rights as limited liability companies (LLCs). Anyone can now form a DAO LLC with the best of both worlds. This model has the benefits of a LLC while having a democratized voting structure of a DAO where all members of the company have a voice.

1. Protection of Assets

LLCs are popular because they offer limited liability to their owners. With a DAO LLC you have the same benefit, except since the company is run by all its members everyone has the same protection.

Any legal troubles the organization goes through will not affect any members personal assets.

2. Avoid Double Taxation

A DAO LLC's taxes will be handled similar to a regular LLC.

LLCs avoid double taxation, meaning the company and the owners aren't taxed separately. This is big since regular DAOs are presently in a gray area when to comes to how they pay their taxes, which is not the case with DAO LLC's.

The organizations profits will be taxed only once through each member's individual tax return, and as a plus all members may qualify for a 20% reduction of their business income thanks to Tax Cuts and Jobs Act of 2017.

3. All Members Have a Voice

Each member can vote for changes to be made in how the organization operates, does business, or any other function.

For example, in a corporation only the board of directors handles these decisions by voting, but it is the opposite for a DAO LLC.

No one single person or group has control, the power is given to all the members.

4. Full Transparency

Unlike a regular LLC where the inner workings are left only for the owners to know, a DAO LLC's member are alway kept in the light about what is going on.

The organizations code, votes, and proposals are fully transparent and verifiable on the blockchain to all members at all times. The only way the code can be changed is by a vote, which means all members are aware of the change being considered.