US citizens may now register their DAOs as LLCs in the state of Wyoming.
Time to celebrate?
Depending on your level of patriotism, you may or may not consider this a breakthrough. In and of itself, the nature of a DAO doesn't favor submission to a sovereign to define it. Decentralized autonomous organizations are autonomous. It's in the title. They compete with governments; they don't submit to them.
This is exactly why Facebook was cordially disinvited from producing its own currency and effectively making itself a DAO. Would Libra have been launched as it was originally intended, Facebook would have become the world's largest and most powerful country. (Facebook was already skipping court dates with the IRS. I swear the reporting on that has been wiped from the Internet because it makes the government look like pussies. But I remember it like it was yesterday.)
DAOs are countries, not companies. But there may be a way to use this.
I would never submit any DAO to a government unless the entire purpose of that DAO was to onboard money into that government's country. LLCs do have favorable tax incentives, and it is certainly convenient to use Wyoming to protect your sovereign money from federal confiscation, er, taxation.
Seeing as you can split non-custodial wallets into as many wallets as you want, I might simply use good business strategy and separate holdings depending on what those holdings are meant to accomplish. For instance, many rich people who own multiple houses have each of those houses under a separate LLC.
It could also be advisable to take advantage of privacy protocols such as Monero, Secret Network, Tornado, Swirl or Suterusu to ensure the privacy of your capital movement from one DAO to another.
Onboarding the second DAO into the US as a registered LLC in Wyoming for the purpose of offloading crypto into US fiat could be advantageous, I suppose.
Of course I'd ask a tax professional about this and still be as clandestine as possible. What they don't tell you is that you can ask all the tax professionals you want. If the IRS sues you, your tax professional's not on the hook for any of the bullshit the feds may pull. Privacy is still your ultimate weapon.
But sovereignty is still your ultimate ultimate weapon. These nice guy moves from Wyoming will only serve to onboard stricter and more draconian regulations down the road. Always maintain non-custody, privacy, and anonymity as much as possible in crypto. There is no substitute for sovereignty. It's worth more than a favorable tax haven.
Keeping in mind that I would never even consider doing any of this if my DAO was truly decentralized, i.e., its intellectual capital not completely captured by the United States. True decentralization is difficult, but a worthy goal. It's what will drive humanity forward, not tax havens.
