Wyoming Is The Go-To State For Crypto LLCs

Thinking about formalizing your crypto project, bringing new eyes seeking a safer, more accountable investment? A Wyoming DAO LLC, a limited-liability company that recognizes on-chain governance in its charter, gives projects a clear legal wrapper and limited liability for members. DAO LLC’s allow the smart contract and operating agreement define how votes, treasuries, and upgrades work. For investors, that structure can reduce uncertainty around who’s in charge and how decisions are made, compared with anonymous multisigs or informal communities. It also forces basic disclosures (like the contract address) and annual filings, which improves transparency without bogging teams down. It isn’t a compliance silver bullet, however, as securities, tax, and licensing rules still apply. For crypto-native teams and cautious backers, it’s a practical step toward real governance, predictable processes, and cleaner risk management.

What makes Wyoming different

1) Statutory recognition of DAOs. Wyoming’s 2021 DAO law defines a DAO LLC, applies the state LLC Act where not inconsistent, and lets governance run by members and smart contracts. Articles must include a publicly available identifier for any smart contract used to manage the DAO. Names must include DAO, LAO, or DAO LLC. A conspicuous notice explains that fiduciary duties can be modified or eliminated by code and agreements. WY W.S. 17-31-101

2) Lower ongoing friction. Most entities pay a $60 annual license tax. If you hold Wyoming-sited assets above $300,000, the fee scales at 0.0002 of those assets. You can e-file or mail the report. WY Business Division Filing Fee Schedule

3) Practical access. You do not need to live in Wyoming. You do need a Wyoming registered agent. WY DAO FAQ

4) Tax climate. Wyoming has no state personal income tax and no state corporate income tax, which is why it consistently ranks near the top in business-tax climate comparisons. Federal taxes still apply, and sales or property taxes may apply based on activity and location. WY Business Taxes

Also consider Delaware

Delaware is the national default for corporations and traditional LLCs because of its case law and Court of Chancery. For LLCs, Delaware charges a flat $300 annual franchise tax. Delaware has no DAO-specific statute that lets you register as a DAO LLC with a smart-contract identifier. Projects that prioritize judicial precedent and investor familiarity may still prefer Delaware, but crypto-native governance gets clearer treatment in Wyoming. DE Division of Corporations

Other states are improving business climates, yet none combine Wyoming’s DAO statute with no state income tax and low, assets-based annual license tax. Wyoming is the best bet for projects who want the DAO LLC label in law, relies on on-chain governance, and prefers low recurring costs with no state income tax overlay. Evaluate where you have nexus and operations, because taxes and licensing can depend on where you do business, not just where you register. Investopedia

Important notes

Banking and compliance still matter. A Wyoming charter does not guarantee banking access, money-transmitter coverage, or federal securities compliance.

Public disclosures. DAO LLCs must publish a smart-contract identifier and include specific notices in governing documents. That improves clarity but can reduce anonymity. WY W.S. 17-31-101

Multi-state activity. If you hire, sell, or maintain assets in other states, you may need to register as a foreign entity and pay their fees or taxes. General tax-climate rankings do not eliminate nexus rules. Investopedia

How to register a Wyoming DAO LLC

1.      Pick a name that includes DAO, LAO, or DAO LLC.

2.      Prepare Articles of Organization for a DAO LLC. Include the smart-contract identifier used to govern operations.

3.      List management in the articles, including how much is run algorithmically.

4.      Appoint a Wyoming registered agent.

5.      File and pay the $100 formation fee online or by mail via the Secretary of State.

6.      File the Annual Report each year in your anniversary month and pay the license tax.

Quick FAQ

Do I need to be in Wyoming? No. Anyone can register, but you must keep a Wyoming registered agent.

What does it cost to start? Filing is $100 for a DAO LLC.

What is the annual fee? $60 minimum or 0.0002 of Wyoming-sited assets if higher. Due each year in your anniversary month.

Is Wyoming “tax free”? No. There is no state income or corporate income tax, but federal taxes and other state or local taxes still apply depending on activity.

DYOR: WY Links to Learn More

DAO Frequently Asked Questions: sos.wyo.gov/Business/Docs/DAOs_FAQs.pdf

DAO Legislation: wyoleg.gov/2021/Enroll/SF0038.pdf

How to file online: wyobiz.wyo.gov/Business/RegistrationInstr.aspx

DAO Registered Agents: sos.wyo.gov/Business/CRAHome.aspx