Series DAO LLCs
Series LLCs for Independent Companies
While there are good use cases for Series LLCs and Series DAO LLCs, MIDAO does not recommend purchasing Series LLCs from third-party providers who control the Master LLC. As a result, RMI Series DAO LLCs are not available in that context. Read more about that issue here.
RMI Master-Series DAO LLCs
MIDAO always recommends hiring a lawyer, and this is especially true if you want to create a Master-Series DAO LLC, given the complexity of the legal documents required to create and operate one.
RMI Series DAO LLCs are just like Series LLCs, but with all the benefits of the Marshall Islands DAO LLC. If you're not familiar with Series LLCs, check out this article from Wolters Kluwer.
The main benefit of a Master-Series DAO LLC is that assets, liabilities, membership, and other operational issues can be kept separate between the different Series.
Note that not every jurisdiction and court in the world recognizes the separation of assets and liabilities between the Series, so it's important to seek legal advice regarding the risks involved and to ensure the Master-Series is operated properly to mitigate those risks.
The way a Master-Series DAO LLC works is that you register a Master DAO LLC with MIDAO, then the Master independently creates individual Series within it.
Once a Master DAO LLC is created, it can be extremely quick and easy to spin up Series within it, as no additional filings with MIDAO or the Marshall Islands are required to create each Series.
You can create as many Series DAO LLCs as you want within a Master DAO LLC.
Examples Use Cases for Master-Series DAO LLCs
DAOs with sub-DAOs can utilize a Master DAO LLC with Series DAO LLCs within the Master for each sub-DAO
Investment companies wishing to separate various investment portfolios into individual Series within a Master.
NFT projects wishing to separate assets and liabilities between different collectiosn of NFTs.
Incubators wishing to provide "starter" legal entities for projects going through their incubator.
Compliance, Beneficial Owners, and KYC for Series DAO LLCs
From MIDAO and the Marshall Islands government's perspective, Compliance, Beneficial Ownership reporting, and KYC is conducted only on the Master DAO LLC, not each individual Series within it.
Read more about Compliance, Beneficial Owners, and KYC for DAO LLCs here.
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