One of the most significant practical benefits of incorporating as a Marshall Islands DAO LLC is the ability to interface with the traditional financial system. Without a legal entity, a DAO cannot open a bank account, obtain a tax ID, or transact in fiat currency. With one, the full banking system is accessible.
Why DAOs Need Banking
Even crypto-native organizations eventually need fiat access:
- Pay for services — Hosting, legal fees, audits, marketing, contractor payments
- Employee compensation — Salaries, tax withholding, benefits
- Revenue collection — Accepting payment from customers who pay in fiat
- Tax obligations — Paying the 3% GRT or any local tax obligations in fiat
- Real-world assets — Purchasing real estate, IP, equipment, or domain names
- Insurance — D&O insurance, professional liability, property insurance
The KYB Process
Know Your Business (KYB) is the corporate equivalent of KYC. Banks require:
| Document | Purpose |
|---|---|
| Certificate of Formation | Proves the entity legally exists in the RMI |
| Operating Agreement | Defines governance, membership, and distribution rules |
| Entity ID / Tax Number | Unique identifier for tax and banking purposes |
| Registered Agent Letter | Confirms the entity has a registered presence in the RMI |
| BOIR Filing | Identifies beneficial owners above the 25% threshold |
| KYC for Signatories | Passport and proof of address for account signatories |
| Source of Funds | Clear narrative explaining where the entity’s funds originate |
Banking Access for RMI DAOs
RMI DAO LLCs have successfully opened accounts with US-linked and international institutions. The key factors banks evaluate:
- Formal legal structure — A Certificate of Formation from a recognized sovereign jurisdiction
- Compliance infrastructure — Active BOIR filing, KYC completed for major stakeholders
- Clear business purpose — A coherent description of what the entity does and how it generates revenue
- Registered Agent — A licensed agent in the RMI who can receive service of process and facilitate compliance
The RMI’s Compact of Free Association with the United States — including use of the US dollar — provides familiarity and comfort for US-linked banks that would not extend the same courtesy to entities from less established jurisdictions.
Crypto Wallets and On-Chain Treasury
Beyond traditional banking, each DAO LLC can maintain on-chain wallets for:
- Treasury management — Holding and deploying crypto assets under the entity’s legal ownership
- Shareholder distributions — Paying dividends or distributions on-chain to Class B shareholders
- DeFi operations — Staking, lending, and liquidity provision in the entity’s name
- Payment receipt — Accepting crypto payments for services rendered
The legal recognition of smart contracts in the RMI means that on-chain wallet operations have the same legal standing as traditional bank transactions. A smart contract transfer is a corporate action.
The entity.legal Banking Package
entity.legal includes banking infrastructure as part of every formation:
- Bank account — USD-denominated business banking
- Debit card — For operational expenses
- Crypto wallet — Solana-based for on-chain operations
- Compliance documentation — All KYB documents prepared and ready for bank submission
The goal is to eliminate the months-long process of finding a bank willing to serve a crypto entity. When you incorporate through entity.legal, banking is part of the package — not an afterthought.
Further Reading
- Marshall Islands DAO LLC — The complete legislative framework
- Compliance & KYC — The compliance infrastructure that enables banking
- Offshore DAO Myths — Addressing the “can’t get a bank account” myth
- Legal Entities for AI Agents — Banking for autonomous systems