Starting a DAO on Aragon vs. Regular LLC

Hi, I’m new in the cryptospace and recently came up with an idea Id like to invest my life into. I immediately found a partner looked into registering as a LLC, and took steps to form a centralized legal entity. Then I found Aragon this week. I knew about DAO’s but they always seemed complex. After trying Aragon on rinkeby, im curious.

I mainly have 3 questions:

  • Can I form a DAO on Aragon to avoid registering an LLC?

  • Can I onboard my first employee through Aragon and avoid W-4’s and legal fees? Using the payroll app for example.

  • If my DAO turns a profit (which I plan on doing), will I be in any legal danger from users or government?

I plan on distributing control of my company 50-50 between my friend and me at the beginning, but in the future allowing stake in the company from other employees or outside entities. I see Aragon not only as a cheaper avenue then the traditional centralized approach, but also as a means for a more transparent business model.

(Big IANAL and ‘please check with your laywer’ disclaimer to anything below)

The underlying issue right now is that if you just use Aragon, the organization will be unincorporated and it will be up to different authorities to decide what the statutory legal status is.

If the organization is solely owned by you, then I think it could be considered as if you were doing these things as an individual directly (without any tax or liability shielding)

There’s a law firm that we have a pretty good relationship with that has helped companies create a legal entity that is operated with Aragon for the most part. If interested in it, we can make an intro.

cc @maria @lkngtn

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Yes thank you. That’s someone I’d love to speak to. Let’s set it up