Just like digital assets, Crypto LLCs and Web3 Startups/Entrepreneurs are a business space full of potential for growth, but with uncertainties surrounding regulations. With proper guidance and assistance, you can ensure that your success in this relatively new space is not minimized by regulatory requirements that are, as of yet, unknown.
If you are an entrepreneur in the crypto or Web3 space, Allegis Law is prepared to apply its experience in this unique business arena to assist you. Our goal is to provide you with the guidance necessary to maximize profit potential while protecting your existing assets through best practices in cybersecurity, governance, tax planning, and data.
According to the Pew Research Center, 17% of U.S. adults have owned some crypto, but 63% do not have confidence that investing and trading in it is safe and reliable. Both traders and miners can benefit from forming a Crypto LLC for a crypto business.
By forming an LLC for your crypto business, you keep your personal assets separate from your business liabilities. When managed correctly, this can protect your personal assets from claims and debts and, if you have partners, protect your equity against partners’ mistakes. We can also incorporate this LLC into your crypto trust.
When you create an LLC for your crypto business, your transactions for digital assets will be associated directly with your LLC, giving you one layer of additional protection for the funds involved.
Through an LLC, your crypto business may give you the opportunity to have tax deductions related to your operations. Of course, without proper planning, tax deductions are limited and you can discuss business expenses even without forming an LLC.
The formal existence of your business in an LLC structure gives the impression of professionalism and credibility.
Of course, there are risks with starting a crypto LLC or Web3 startups, but those risks mirror the risks to mining and trading without the business structure in place. With an LLC in place, the major risks are:
Starting your crypto or Web3 business with an understanding that there is no simple exit is critical. Once your tokens are distributed to your global purchasers, you are obligated to maintain your business through those token-holders’ lifecycle.
Working with Allegis Law will provide you with strong guidance from an experienced attorney who understands digital assets, and we will assist you in setting up a business structure that supports your goals. You likely understand the volatility of the crypto market and should further understand that Web3 projects, like Blue Sky, OpenSea, or Coinbase, are even more volatile due to their relative newness, speculation involved in the ventures, and the small market capitalization. These digital assets experience major shifts with little market warning.
Your startup will require careful attention to detail and an understanding of the global market for crypto and Web3. International financial reporting standards must be understood, and you need to keep up-to-date on the potential and actual changes to legal and regulatory shifts surrounding this relatively new market. Obviously, you will also want to take care to avoid criminal enterprises in this space - the crypto market is not without fraudulent actors, schemes, and cyberattacks.
When you are ready to take the step toward starting a crypto LLC or Web3 startup, working with Allegis Law is a great way to move forward. With over 15 years of tax and estate planning experience, working with Rustin Diehl will provide you with advice based on the latest in the complex landscape you are entering. We help you comply with all Federal, State, and international laws regarding digital assets and help you draft necessary documents such as operating agreements, terms of use, and privacy policies.
We will also advise you on how to structure your new LLC to give you the most efficient taxation presence while protecting your liability as an individual. If needed, we can also assist you in protecting any intellectual property rights relevant to your business, and set up a tax and estate plan for your digital assets. If you are unsure where to start, we are prepared to ask you the right questions.
Some things to think about in advance of our meeting are:
It is a lot to think about, but we can work through those questions together if that works better for you. When you have your first consultation, we will see where you are with each of the above points and other relevant considerations for your business. Contact Allegis Law today to start the conversation.
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