Compliance Issues for New Legal Structures
The Internet and growth of new technologies has turned business models on their heads. Existing business structures like the corporation, dating back to the 1600s, to the LLC that first arrives in 1977 feel quaint in an era of international business where ownership can transfer hands instantaneously. The DAO, challenges legal regimes for how to manage autonomous organization without any central location for tax authorities to claim authority. The concept of nexus, or location you do business in, creates interesting challenges for how these new DAOs will be regulated and taxes. Those operating DAOs from the United States, however, need to consider how they are going to present themselves to the IRS and state treasury departments.