DAO LLC vs Delaware C-Corp
If you run a protocol with on-chain governance, the wrapper you choose decides whether your governance is recognized natively or forced into a board. The Marshall Islands DAO LLC is the only sovereign statute that recognizes a DAO as it actually operates. A Delaware C-Corp is the right answer only if you are not really a DAO.
| Marshall Islands DAO LLC $15,999 all-in Sovereign DAO recognition | Wyoming DAO LLC $399 all-in US statutory DAO LLC | Delaware C-Corp $299 all-in The traditional VC wrapper | |
|---|---|---|---|
| Best for | DAOs wanting native on-chain-governance recognition | US-domiciled DAOs on a budget | Protocols going the traditional VC-backed route |
| Recognizes on-chain governance | Yes, natively (2022 statute) | Yes, US statutory | No; maps to a board |
| Sovereign | Yes (Marshall Islands) | No (US / Wyoming) | No (US / Delaware) |
| Member liability shield | Yes | Yes | Yes |
| Token-holder governance | Recognized as members | Recognized | Not native; requires wrapping |
| Typical cost | $15,999 all-in | $399 all-in | $299 all-in |
| Provider | Single licensed agent | Wyoming registered agent | Harvard Business Services |
| Pay in Bitcoin | Yes | Yes | Yes |
Which one is yours?
Choose the Marshall Islands DAO LLC if
You are running a real DAO with on-chain governance and you want a sovereign legal wrapper that recognizes that governance natively, not a workaround that maps to traditional LLC mechanics. It is the only statutory DAO LLC at the sovereign level and the only one we ship in Bitcoin.
Choose the Wyoming DAO LLC if
You want a US-domiciled statutory DAO LLC and the Marshall Islands premium is not justified for your stage. The trade-off is that you are limited to Wyoming case law rather than a sovereign DAO statute, at a fraction of the cost.
Choose a Delaware C-Corp if
You are not really running a DAO. If your endgame is a traditional priced round from US VCs and your governance is effectively centralized, the honest choice is the C-Corp the category is built for. Do not buy a DAO wrapper for optics.
Common questions
- Do I need a legal wrapper for my DAO?
- If your DAO has a treasury, signs counterparty agreements, or wants liability protection for members, yes. An unwrapped DAO can be treated as a general partnership, exposing members to unlimited personal liability. The wrapper is the fix.
- Marshall Islands or Wyoming DAO LLC?
- Marshall Islands is the only sovereign DAO statute and recognizes on-chain governance natively; Wyoming is US-domiciled, far cheaper, and limited to Wyoming case law. For a serious protocol with a real treasury, Marshall Islands. For an early or budget-constrained team, Wyoming.
- Why would a DAO ever choose a C-Corp?
- Only if it is not really operating as a DAO. If you are raising traditional venture capital and your governance is centralized in practice, the C-Corp is honest. Wrapping a centralized startup in DAO clothing for optics is the wrong reason.