Start the conversation by reaching out to MIDAO and providing some basic information about your DAO or Web3 project.
Next, MIDAO will help you through KYC and send you template documents such as an operating agreement to complete with their guidance.
MIDAO will submit all of your documentation to the RMI, and will send you your DAO LLC charter after a short waiting period.
– KoinDX
– Pecunia.Finance
– Secret Network
If you’re not recognized as a legal entity, all of your contributors are at significant risk. If you get sued, all of your contributors’ assets could be seized. Incorporating is the best way to avoid these risks.
The best way to protect your organization’s contributors is to incorporate it as a DAO LLC. This ensures everyone can keep their assets and their future earnings even if the organization is sued or under a legal crisis.
If your DAO or Web3 project gets sued, whether it is for-profit or not-for-profit, any number of these things could happen:
- Your contributors are liable, meaning their personal assets will be under attack. In other words, everyone will be paying up.
- Your anonymous contributors will have to share their identities.
- You’ll need to create a centralized entity going forward, which is against your ethos of decentralization.
If you don’t have corporate personhood, your DAO can’t technically own any Intellectual Property or hire employees. Put simply, your DAO has no capacity to own assets, enter into agreements, or act as an entity in the corporate realm without incorporating first.
If your DAO or Web3 project needs to open a bank account to manage fiat currencies, it’s impossible unless you establish corporate personhood. And, if you’re signing contracts and interacting with third-party companies outside of the organization, the contracts don’t hold up under the law without corporate personhood.
Without a tax entity, all your members can be held accountable for taxes on any net earnings your DAO generates. If you sell a bunch of NFTs, for example, your members would have to pay taxes on those gains, even if they never received any of the money.
A MIDAO Non-Profit DAO LLC not only protects your members from having any tax reporting or liability, but the entity is also not taxed by the government. Think about all the money this will save you and your members!
This guide was built to help you understand the benefits of incorporating your DAO and how the process of DAO incorporation works. We help you answer questions like:
Why should I incorporate my DAO? In what geographic jurisdiction should I incorporate my DAO? What legal entity type should I choose?
A limited liability corporation (LLC) to protect you and your contributors
Physical address in the Marshall Islands
Automated Anti Money Laundering (AML) and Counter Financing of Terrorism (CFT)
Corporate personhood, which allows your organization to own assets and enter into agreements
Annual document filing on your behalf
White glove service from beginning to end
Recognition of smart contracts
A point person to work with the Marshall Islands government
Help with creating your legal documents, such as your operating agreement
The opportunity to weigh in on legislation
All beneficial owners or members (those with 25%+ governance rights) must have current passports and complete KYC. Our third-party vendor validates their residency and citizenship and checks against sanctions and blacklists.
- Operating Agreement
- Certificate of Formation
- Foreign Investment Business License (FIBL) application
Fill in the details below for any questions or to reserve your DAO LLC and we’ll be in touch.
This guide was built to help you understand the benefits of incorporating your DAO and how the process of DAO incorporation works. We help you answer questions like:
Why should I incorporate my DAO? In what geographic jurisdiction should I incorporate my DAO? What legal entity type should I choose?
Get all the information you need to make the best decisions for you DAO by reading this guide.
