# How are DAOs Created? The formation of a DAO is not all that different from forming any other kind of business. Legally compliant DAOs are LLCs, which means they are a limited liability company. A limited liability company means that the company is considered its own legal entity, regardless of how it pays taxes through the owner’s tax return. This also means that members are not personally liable for any legal actions against the entity, but does not prevent the company itself from facing legal proceedings. --- # Agent Instructions: Querying This Documentation If you need additional information that is not directly available in this page, you can query the documentation dynamically by asking a question. Perform an HTTP GET request on the current page URL with the `ask` query parameter: ``` GET https://blocks-1.gitbook.io/blocks/mission-and-founding-documents/intro-to-blocks-and-the-industry/how-are-daos-created.md?ask= ``` The question should be specific, self-contained, and written in natural language. The response will contain a direct answer to the question and relevant excerpts and sources from the documentation. Use this mechanism when the answer is not explicitly present in the current page, you need clarification or additional context, or you want to retrieve related documentation sections.