DAO LLC
Limited liability company whose operating agreement delegates management to smart contracts and recognises on-chain governance. Available in Marshall Islands (2022) and Wyoming (2021).
The DAO LLC is a limited liability company purpose-built to give Decentralised Autonomous Organisations a legal shell. Its Operating Agreement provides that management is delegated to a defined set of smart contracts, and membership interests are defined by token holdings rather than by name. Two jurisdictions have purpose-built DAO LLC frameworks: Marshall Islands (DAO LLC Act 2022) and Wyoming (DAO Supplement to the LLC Act, 2021).
Why it matters
Without a legal-entity wrapper, a DAO has no legal personality — its members face joint and several liability for the DAO's actions. The DAO LLC provides limited liability to members, allows the DAO to own assets and sign contracts off-chain, and gives the smart-contract vote real-world enforceability.