Marshall Islands
The Republic of the Marshall Islands passed the DAO LLC Act in 2022: the first statutory recognition of a Decentralized Autonomous Organization as a legal entity anywhere in the world. The country licenses a sole registered agent for DAO LLC filings under the statute; there is no second source. If you're operating a DAO and want a sovereign legal wrapper that recognizes on-chain governance natively, Marshall Islands is the only option.
What makes Marshall Islands different
- The only sovereign legal wrapper for DAOs with statutory recognition since 2022.
- Single licensed agent: no fragmented competitor landscape, no shopping required.
- Operating Agreement explicitly references on-chain governance and smart-contract authority.
- Removes the legal-personality ambiguity that exposes core contributors to personal liability.
What we collect, and what Marshall Islands filing requires
- Email, country of residence, intended use statement
- OFAC + EU + UN sanctions screen
- Tier 1 KYC (ID + proof of address + source-of-funds attestation): required at this price tier
- Beneficial ownership for every member with a 25%+ governance share or equivalent token holding
- Smart contract disclosure forms: addresses of governance contracts and treasury wallets
The honest note: The Marshall Islands agent's KYC is substantive. They are the regulated entity in the jurisdiction and take that role seriously. Plan to provide ID and a clear description of the DAO's purpose. Anonymous formation is not available for this SKU.
Where Marshall Islands entities bank
Banking for DAOs is harder than for traditional LLCs. We surface all three options on the post-formation flow and route based on your treasury composition. See the Banking page for named rails.
Full banking rankingWhen this jurisdiction is right (and wrong)
If you're a DAO with on-chain governance and you want a sovereign legal entity that recognizes that governance natively, not a workaround that maps to traditional LLC mechanics, Marshall Islands is the answer. The statutory language was written with DAOs in mind, not retrofitted.
If your core contributors face personal-liability exposure under common-law agency or partnership doctrines, wrapping the DAO in a recognized entity removes that exposure. This is the primary risk-management driver for most MI DAO formations.
If you're issuing a governance token or operating a protocol treasury and need a counter-party-acceptable legal form for service agreements (with auditors, contractors, custodians), the MI DAO LLC is the only structure that gives you that without forcing the DAO into a centralizing wrapper like a Delaware C-Corp.
Marshall Islands is not in the EU and not in FATF white-listed jurisdictions. Some counter-parties, especially traditional banks and EU regulators, will treat the entity skeptically. Expect more friction in banking onboarding than for a Wyoming DAO LLC.
The licensed agent is the only agent. There is no competitive market. Pricing is set by a sole-source provider and is meaningfully higher than Wyoming's DAO LLC SKU.
DAO LLC structure is still legally novel. Case law is thin. If your DAO faces litigation in a non-MI forum (most US courts, EU courts), the structure may be respected; or it may not. We can't tell you which. Talk to crypto-litigation counsel before relying on the structure for serious liability shielding.
Common Marshall Islands questions
Why is MI the only option for a DAO LLC?
Marshall Islands' DAO LLC Act of 2022 is the only national statute explicitly recognizing DAOs as legal persons. Wyoming has a DAO LLC statute but US tax treatment is less DAO-friendly and Wyoming case law is centralizing. Switzerland, Cayman, BVI have similar conversations but no equivalent statute.
What is the registered agent's role?
The licensed agent files your Articles of Organization, maintains the registered office, and handles ongoing statutory compliance. They are not your lawyers or your treasurer.
Do I need KYC even though I'm a DAO?
Yes. The Marshall Islands agent collects beneficial-owner information from members holding 25%+ governance power. There is no anonymous DAO LLC option.
Can I bank a MI DAO LLC?
The major US tech-banking rail accepts MI DAO LLCs case-by-case. Our Bitcoin-native rail is the fallback for DAOs with BTC treasury. An offshore rail covers DAOs that the US options reject. None of these is guaranteed approval. Bank onboarding is harder for DAOs than for traditional companies.
What's the total Year-1 cost?
$15,999 covers the Marshall Islands government registration, first-year licensed registered agent, and OffshoreGuy service. Year-2 onward is approximately $4,999/yr for the agent renewal.