TOKENIZATION LLC
Mint a Delaware LLC Protected Series
X
Launching soon
Limited Liability Crypto Wallets
Bridge Businesses & RWAs Onchain
Legal Personhood for Digital Assets
๐ | ๐ฎ | ๐ |
---|---|---|
State of Delaware | ๐ฎ | ENS |
TOKENIZATION LLC | ๐ฎ | tokenizationllc.eth |
Protected Series | ๐ฎ | Subdomain |
Member | ๐ฎ | Owner |
Manager | ๐ฎ | Manager |
Books & Records | ๐ฎ | Addresses & Records |
How it Works
Collectively the Delaware Limited Liability Company Act, the Tokenization LLC Certificate of Formation, the Tokenization LLC Operating Agreement, and the Protected Series Operating Agreement create a legal framework (โLLC Oracleโ) for creating, owning and managing Delaware LLC Protected Series under Tokenization LLC using Ethereum Name Service (ENS).
Under the LLC Oracle the Owner of the ENS subdomain is the owner of a Tokenization LLC Protected Series.
While ENS gives the Protected Series to be created, formed and managed onchain, the Protected Series has legal personhood with freedom to contract that is extended to the ENS.
While ENS gives the Protected Series to be created, formed and managed onchain, the Protected Series has legal personhood with freedom to contract that is extended to the ENS.
The LLC Oracle leverages ENS to power the onchain operating system for governance and management of the books, records and assets of the Protective Series under the Series LLC.
Under the LLC Oracle the Protected Series shall have the power and capacity, in its own name, contract, hold title to assets (including real, personal, or intangible property), all managed and/or recorded on ENS.
Under the LLC Oracle the Protected Series shall have the power and capacity, in its own name, contract, hold title to assets (including real, personal, or intangible property), all managed and/or recorded on ENS.
LLC Oracle
Delaware LLC Act
Delaware Certificate of Formation
LLC Operating Agreement
Series Operating Agreement
LLC Benefits
By transferring ownership of cryptocurrencies, DAO governance tokens and/or NFTs to an LLC, you can shield your personal assets from potential liabilities associated with these digital assets, such as legal disputes or claims of infringement.
Limited liability protection can help minimize legal risk and help safeguard your personal finances and assets, in case of adverse events related to your digital assets and/or crypto wallets.
Limited liability protection can help minimize legal risk and help safeguard your personal finances and assets, in case of adverse events related to your digital assets and/or crypto wallets.
Tokenizing real world assets ("RWAs") is defined as managing asset data and/or legal rights on chain. However, existing laws and regulations prevent the direct tokenization of certain assets. LLCs are a unique RWA in that there is already legislation authorizing tokenized LLCs and LLCs can legally own other real world assets. This enables tokenized LLCs to act as a legal bridge for RWA ownership rights on chain.
For example, due to how legal title of real estate is recorded throughout most of the the United States, Alice can not tokenize ownership of her house directly. However, Alice's LLC can own the real estate and Alice can tokenize ownership of the LLC.
For example, due to how legal title of real estate is recorded throughout most of the the United States, Alice can not tokenize ownership of her house directly. However, Alice's LLC can own the real estate and Alice can tokenize ownership of the LLC.
Legal personhood can be thought of as the inverse of tokenizing RWAs. Legal personhood empowers blockchain native digital assets with real world agency and legal rights such as the right to contract.
For example, if Bob owns an NFT with commercial IP rights, then Bob can could benefit by transferring the NFT to a tokenized LLC he owns. Legal personhood allows Bob to use the LLC to enter into legal agreements, like licensing agreements, on behalf of the NFT protecting Bob's personal assets as discussed above.
For example, if Bob owns an NFT with commercial IP rights, then Bob can could benefit by transferring the NFT to a tokenized LLC he owns. Legal personhood allows Bob to use the LLC to enter into legal agreements, like licensing agreements, on behalf of the NFT protecting Bob's personal assets as discussed above.
Holding cryptocurrency, DAO governance rights and NFTs through LLCs may offer tax advantages, such as the ability to optimize tax treatment for capital gains, losses, and other taxable events.
Owners can strategically manage their tax obligations by utilizing the flexibility provided by an LLC.
Owners can strategically manage their tax obligations by utilizing the flexibility provided by an LLC.
LLCs can facilitate estate planning and wealth transfer strategies, allowing owners to pass on their cryptocurrency, DAO governance rights and NFTs to heirs and beneficiaries. This can help ensure continuity and preservation of wealth across generations.
Team
William T. Brown, Esq.
aka
ENSpunks.eth
Mr. Brown is an attorney with over a decade of experience as outside counsel for business organizations handling matters like governance, compliance, intellectual property protection, tax strategy, and mergers & acquisitions.
Mr. Brown founded Tokenization LLC with the hope of democratizing access to legal services, making law composable, and integrating legal rights as a primitive.
Mr. Brown founded Tokenization LLC with the hope of democratizing access to legal services, making law composable, and integrating legal rights as a primitive.
FAQs
A Limited Liability Company (LLC) is a business structure that combines the limited liability protection of a corporation with the flexible management and pass-through taxation of a partnership or sole proprietorship. In an LLC, owners are typically referred to as "members," and they enjoy limited liability, which means their personal assets are protected from the debts and liabilities of the business. Additionally, LLCs offer flexibility in management structure and profit distribution among members. They are commonly used by small businesses and startups due to their simplicity and favorable tax treatment.
A Series LLC, short for Series Limited Liability Company, is a unique legal structure that allows for the creation of individual series within a single LLC entity. Each series operates as a separate entity with its own assets, liabilities, members, and business activities.
The key feature of a Series LLC is the ability to segregate assets and liabilities among different series within the same entity. This means that the debts, obligations, and liabilities of one series are generally shielded from the assets of other series within the same LLC. Each series can have its own business purpose, investment strategy, and management structure.
Series LLCs are commonly utilized in real estate investments, holding companies, asset protection strategies, and family wealth management.
The key feature of a Series LLC is the ability to segregate assets and liabilities among different series within the same entity. This means that the debts, obligations, and liabilities of one series are generally shielded from the assets of other series within the same LLC. Each series can have its own business purpose, investment strategy, and management structure.
Series LLCs are commonly utilized in real estate investments, holding companies, asset protection strategies, and family wealth management.
A single-member LLC (Limited Liability Company) is a business entity that has only one owner, known as a "member." Despite having only one member, a single-member LLC still offers limited liability protection, meaning the owner's personal assets are typically shielded from the debts and liabilities of the business.
From a legal standpoint, a single-member LLC is treated similarly to a multi-member LLC, but for tax purposes, it is typically treated as a disregarded entity by default. This means that the IRS disregards the LLC's separate existence for tax purposes and it does not file a separate tax return, but the business's profits and losses are reported on the owner's personal tax return using Schedule C (if the owner is a sole proprietor) or Schedule E (if the owner is an individual operating rental real estate activities).
Single-member LLCs are popular among small business owners and entrepreneurs due to their simplicity, flexibility, and liability protection benefits.
From a legal standpoint, a single-member LLC is treated similarly to a multi-member LLC, but for tax purposes, it is typically treated as a disregarded entity by default. This means that the IRS disregards the LLC's separate existence for tax purposes and it does not file a separate tax return, but the business's profits and losses are reported on the owner's personal tax return using Schedule C (if the owner is a sole proprietor) or Schedule E (if the owner is an individual operating rental real estate activities).
Single-member LLCs are popular among small business owners and entrepreneurs due to their simplicity, flexibility, and liability protection benefits.
A single-purpose LLC is a limited liability company formed for the sole purpose of owning and managing a single asset or engaging in a specific business activity. Unlike a traditional LLC, which may have multiple business interests or assets, a single-purpose LLC is focused on a single venture, project, or property.
These entities are often used in real estate transactions, where investors create separate single-purpose LLCs for each property they own. This arrangement helps limit liability by isolating potential risks associated with each asset or project. Additionally, it may provide tax advantages and simplify accounting and reporting requirements.
These entities are often used in real estate transactions, where investors create separate single-purpose LLCs for each property they own. This arrangement helps limit liability by isolating potential risks associated with each asset or project. Additionally, it may provide tax advantages and simplify accounting and reporting requirements.
A holding LLC, or holding company LLC, is a type of limited liability company primarily established to hold and own the assets of other businesses rather than engaging directly in operational activities. The primary purpose of a holding LLC is to provide a layer of protection for the assets it holds and to facilitate centralized management and control over its subsidiary companies or investments.
Here are some key characteristics and functions of a holding LLC:
Asset Ownership: A holding LLC primarily exists to own and manage the assets of other businesses, such as subsidiary companies, real estate properties, intellectual property, stocks, or other investments.
Limited Liability Protection: Like other LLCs, a holding LLC offers limited liability protection to its owners (members), shielding their personal assets from the debts and liabilities of the company.
Centralized Management: A holding LLC typically exercises centralized management and control over its subsidiary companies or assets. It may appoint directors or managers to oversee the operations of its subsidiaries.
Risk Management: By holding assets through a separate legal entity, a holding LLC can help mitigate risks associated with the operations of its subsidiaries. If a subsidiary encounters financial difficulties or legal issues, the assets held by the holding LLC may be protected from creditors or legal claims.
Tax Efficiency: Holding LLCs may offer tax advantages, such as the ability to consolidate tax reporting and utilize favorable tax treatments for certain types of income, dividends, or capital gains.
Strategic Planning: Holding LLCs are often used as part of strategic planning initiatives, such as mergers and acquisitions, corporate restructuring, succession planning, or estate planning.
Here are some key characteristics and functions of a holding LLC:
Asset Ownership: A holding LLC primarily exists to own and manage the assets of other businesses, such as subsidiary companies, real estate properties, intellectual property, stocks, or other investments.
Limited Liability Protection: Like other LLCs, a holding LLC offers limited liability protection to its owners (members), shielding their personal assets from the debts and liabilities of the company.
Centralized Management: A holding LLC typically exercises centralized management and control over its subsidiary companies or assets. It may appoint directors or managers to oversee the operations of its subsidiaries.
Risk Management: By holding assets through a separate legal entity, a holding LLC can help mitigate risks associated with the operations of its subsidiaries. If a subsidiary encounters financial difficulties or legal issues, the assets held by the holding LLC may be protected from creditors or legal claims.
Tax Efficiency: Holding LLCs may offer tax advantages, such as the ability to consolidate tax reporting and utilize favorable tax treatments for certain types of income, dividends, or capital gains.
Strategic Planning: Holding LLCs are often used as part of strategic planning initiatives, such as mergers and acquisitions, corporate restructuring, succession planning, or estate planning.
HODLing LLC is a play on words for a Holding LLC specifically derived from the phrase "HODL," which originated as a misspelling of "hold" in a Bitcoin forum post in 2013 and has since become a widely used term in the cryptocurrency space to encourage holding onto investments rather than selling them, especially during times of market volatility.
In the context of "HODLing LLC," it refers to a Delaware Series Limited Liability Company that can create an unlimited number of Protected Series that are owned on chain and represented by ENS subdomains. The Protected Series under HODLing LLC are specifically formed for the purpose of holding and managing cryptocurrency and other digital assets, like NFTs and DAO governance tokens. Similar to a holding LLC for traditional assets, a HODLing LLC will primarily focus on acquiring and holding various cryptocurrencies, tokens, or digital assets.
The formation of a HODLing LLC Protected Series can provide several benefits for cryptocurrency investors and Web3 users, including:
Asset Protection: Holding cryptocurrencies through a separate legal entity like an LLC can offer limited liability protection, shielding personal assets from potential legal claims or liabilities related to the investments.
Tax Planning: Structuring cryptocurrency investments through an LLC may offer tax advantages, such as the ability to optimize tax treatment for capital gains, losses, and other taxable events.
Privacy and Security: Using an LLC to hold cryptocurrencies can enhance privacy and security by keeping personal and investment assets separate, reducing the risk of identity theft or hacking.
Estate Planning: Establishing a HODLing LLC can facilitate estate planning and wealth transfer strategies, allowing investors to pass on their cryptocurrency holdings to heirs or beneficiaries in a structured and efficient manner.
Overall, a HODLing LLC Protected Series is a legal entity specifically tailored to the needs of cryptocurrency investors, DAO participants, NFT owners, and Web3 users broadly who wish to accumulate and hold digital assets for while enjoying the benefits of asset protection, tax efficiency, and strategic planning.
Individuals considering the formation of a HODLing LLC Protected Series should consult with legal and financial professionals to assess their specific circumstances and objectives.
In the context of "HODLing LLC," it refers to a Delaware Series Limited Liability Company that can create an unlimited number of Protected Series that are owned on chain and represented by ENS subdomains. The Protected Series under HODLing LLC are specifically formed for the purpose of holding and managing cryptocurrency and other digital assets, like NFTs and DAO governance tokens. Similar to a holding LLC for traditional assets, a HODLing LLC will primarily focus on acquiring and holding various cryptocurrencies, tokens, or digital assets.
The formation of a HODLing LLC Protected Series can provide several benefits for cryptocurrency investors and Web3 users, including:
Asset Protection: Holding cryptocurrencies through a separate legal entity like an LLC can offer limited liability protection, shielding personal assets from potential legal claims or liabilities related to the investments.
Tax Planning: Structuring cryptocurrency investments through an LLC may offer tax advantages, such as the ability to optimize tax treatment for capital gains, losses, and other taxable events.
Privacy and Security: Using an LLC to hold cryptocurrencies can enhance privacy and security by keeping personal and investment assets separate, reducing the risk of identity theft or hacking.
Estate Planning: Establishing a HODLing LLC can facilitate estate planning and wealth transfer strategies, allowing investors to pass on their cryptocurrency holdings to heirs or beneficiaries in a structured and efficient manner.
Overall, a HODLing LLC Protected Series is a legal entity specifically tailored to the needs of cryptocurrency investors, DAO participants, NFT owners, and Web3 users broadly who wish to accumulate and hold digital assets for while enjoying the benefits of asset protection, tax efficiency, and strategic planning.
Individuals considering the formation of a HODLing LLC Protected Series should consult with legal and financial professionals to assess their specific circumstances and objectives.
*Disclaimers/disclosures: Please note that Tokenization LLC is not a law firm, or an accounting firm. Tokenization LLC does not provide legal or tax advice or representation, and is not intended as a substitute for an attorney, law firm, accountant or accounting firm.
Tokenization LLC's protected series and TokenizationLLC.eth subdomains are subject to the terms of Tokenization LLC's Series Operating Agreement, the Delaware Limited Liability Company Act and other applicable laws.
Tokenization LLC's protected series and TokenizationLLC.eth subdomains are subject to the terms of Tokenization LLC's Series Operating Agreement, the Delaware Limited Liability Company Act and other applicable laws.