Why the Wyoming DAO LLC is the perfect business structure for your Decentralized Autonomous Organization

A Decentralized Autonomous Organization, or DAO, is one that uses the power of smart contracts to handle most of its operations, instead of human beings. Since the advent of blockchain technology, DAOs have become much more common, but they still aren’t used by many businesses or organizations in the real world. That’s where the Wyoming DAO LLC comes in. The Wyoming DAO LLC allows you to set up your own DAO and operate it within the traditional protections an LLC provides it’s members without sacrificing some of the benefits that come with group decision making through smart contracts. These benefits include: scaling without the normal personnel limits, efficient governance and decision making, and the opportunity to raise and deploy funds in cryptocurrency.

Why is the Wyoming DAO LLC right for my organization?




A formal structure

The Legal DAO, like all other LLCs in America, has to operate under an organizational structure and it’s imperative that you organize your company using one created by a legal act. Any changes to that legal organization could be construed as illegal, as not being subject to formal rules and regulations. The Business Corporation Act of Wyoming (BCA) allows for more flexibility than many other states when it comes to operating a company and creating an LLC but also provides more protection for people who invest in your company. Because it’s possible to create a customized DAO company with its own unique rules, you need a legal document that details those rules in order to comply with state law—or risk your entire project being invalidated.


The Wyoming Limited Liability Company provides a legal way to protect yourself from liability, while still retaining some flexibility. With a Wyoming LLC, you can easily assign roles to new and existing members of your organization. If you’re hoping to start an open-source project or have multi-tiered governance in place with your DAO, a Wyoming Limited Liability Company might be right for you.

Protection from liabilities

The DAO LLC is important because it provides a formal legal framework that grants legal protection to members of a Wyoming DAO. This means that as long as they abide by corporate governance rules and do not break laws (e.g., securities fraud, etc.), members of a DAO LLC will not be held personally liable for any liabilities associated with their company. This is important, since it allows for people to participate in crypto without exposing themselves to financial risk. Additionally, some argue that it removes much of volatility from cryptocurrency investments by providing investors with at least some protection against personal loss.

Tax advantages

Wyoming was one of three states that offer specific legislation outlining how a Wyoming DAO LLC can be used to help protect company members from liability while allowing flexibility in decision making. In addition, Wyoming has no personal income tax, meaning any profits within a Wyoming DAO LLC are not subject to state or local taxes (note: there are some federal taxes you’ll still have to pay).

Control of your assets

The Crypto World has evolved so rapidly over these past few years that new structures are needed to accommodate its fast paced nature. This can be seen in just about every aspect of crypto, but what happens when it comes to corporate structure? At Red Rock DAO, we believe a decentralized autonomous organization (DAO) provides incredible security while also being able to be flexible with regards to asset control. Let’s dive into some key elements of a Crypto DAO. Organizations governed by computer code and executed on a blockchain. DAOs are organizations run through smart contracts that allow users to vote on proposals submitted by other users. Once a project is nominated by a member, they may then submit their proposal in which they outline their goals and request funding from Red Rock DAOs funding pool.

Practical application

Red Rock DAO is a decentralized autonomous organization designed to allow for a stable and flexible ecosystem in which investors can empower E-Commerce and FBA (Fulfilled By Amazon) opperators and aggregators to scale and grow their businesses with minimally disrupted cashflow and supply chain issues. This ecosystem allows operators to scale their business without having to rely on banks or other centralized institutions that can limit your growth potential. Our platform utilizes smart contracts and blockchain technology to ensure trust between parties, reduce transaction costs, eliminate fraud and provide full transparency throughout the entire process.

This is Not Investment Advice:

The Content is for informational purposes only, you should not construe any such information or other material as legal, tax, investment, financial, or other advice. Nothing contained on our Site constitutes a solicitation, recommendation, endorsement, or offer by Red Rock DAO LLC or any third party service provider to buy or sell any securities or other financial instruments in this or in in any other jurisdiction in which such solicitation or offer would be unlawful under the securities laws of such jurisdiction.

All Content on this site is information of a general nature and does not address the circumstances of any particular individual or entity. Nothing in the Site constitutes professional and/or financial advice, nor does any information on the Site constitute a comprehensive or complete statement of the matters discussed or the law relating thereto. Red Rock DAO LLC is not a fiduciary by virtue of any person’s use of or access to the Site or Content. You alone assume the sole responsibility of evaluating the merits and risks associated with the use of any information or other Content on the Site before making any decisions based on such information or other Content. In exchange for using the Site, you agree not to hold Red Rock DAO LLC, its affiliates or any third party service provider liable for any possible claim for damages arising from any decision you make based on information or other Content made available to you through the Site.

Discover more at RedRockDAO.com and connect with us on Discord to learn more about how we are revolutionizing the world through web3 scalable funding solutions for E-Commerce and FBA Brands.

Learn More Here.


All rights reserved

Red Rock DAO LLC 2022

How to start a DAO

Want to learn more about DAO's?

Discover more about current DAO ecosystems.