The “Utah DAO Act” -

DAO has a legal personality, is limited liability,  and protect members from personal liability.

DAO needs to be deployed on a permissionless blockchain with decentralized governance system.

Open sourced is required. 
1/n

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In addition to this, the bill provides a clear definition of members and responsibilities.

However, only deployments on permissionless blockchains that maintain open source code and have decentralized governance  are eligible for registration as a limited liability DAO in Utah.

DAO does not have an administrator, all members are considered co-administrators.

Members are not personally liable. However, if DAO refuses to comply with an enforceable judgment or order. Member who vote to not compliace may be liable for monetary payments.

For tax purposes, a DAO is a partnership by default, but can declare as a corporation by public vote.

A DAO shall allocate the distributive share of income, gain, loss, deduction, and credit derived to each member in proportion to the member's membership interest in the entity.

The bill even goes into detail for the case of a hard fork of the blockchain, there is a strong practical aspect.

Not legal advice, and I do not hold a law-related degree or certificate.

We used to register LLC, UNA, Foundation, Co-op for tax/liability protection and affair for DAO. It is essentially adding a legal wrapper to DAOs, it is effective but has some limitations.

The Utah DAO Act grants the DAO a form of legal recognition that is unique to DAOs.

Thanks for sharing! I was actually wondering about this earlier! https://warpcast.com/ppong/0xc410ac