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Documentation Index

Fetch the complete documentation index at: https://docs.openbook.to/llms.txt

Use this file to discover all available pages before exploring further.

A Legal Entity represents a real-world business structure that operates under your DAO. This is where you configure fiscal settings like currency and tax rates.
Don’t have a registered company yet? No problem! Many DAOs start without formal legal structures. You can use a descriptive name like “Zenland Unregistered” to get started — the important thing is to begin recording transactions transparently.

Separate Accounting

Each entity has its own Chart of Accounts, transactions, and reports

Multi-Country Support

Different entities for different jurisdictions with varying tax rules
Most DAOs start with one Legal Entity. You can add more later if your DAO expands to multiple businesses or countries.

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What You’ll Configure

FieldDescriptionExample (Zenland DAO)
Legal NameOfficial or descriptive name”Zenland Unregistered”
CountryOperating jurisdictionUnited States (US)
Default CurrencyPrimary operating currencyUSD (US Dollar)
Tax RateDefault VAT/Sales tax0% (if no sales tax)
Tax NameWhat you call the tax”Sales Tax”
Fiscal Year StartWhen your fiscal year beginsJanuary (Month 1)
1

Navigate to Organization

From your DAO dashboard, go to Organization in the sidebar.
2

Click Add Entity

Click the + Add Entity button.
3

Enter Basic Information

Fill in:
  • Legal Name: Your company’s name or a descriptive placeholder
    • Example: Zenland Unregistered
  • Registration Number: Tax ID or company registration (optional)
  • Country: Select from the dropdown
4

Configure Currency

Select your Default Currency. This will be used for:
  • All transactions by default
  • Financial reports
  • Account balances
For Zenland DAO, we select USD since the X Premium subscription costs $48.
Can’t find your currency? Click + New Currency to add it.
5

Set Tax Defaults

Configure:
  • Tax Rate: Default percentage (e.g., 0.00 for no tax, 12.00 for 12%)
  • Tax Name: Label shown on receipts (e.g., “VAT”, “Sales Tax”)
For digital services/subscriptions, tax requirements vary by jurisdiction. Consult with an accountant if unsure.
6

Save

Click Create Entity to save.

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Example: Zenland DAO Setup

Here’s how Zenland DAO configured their Legal Entity: 
Legal Name: Zenland Unregistered
Country: United States
Currency: USD
Tax Rate: 0%
Tax Name: Sales Tax
Fiscal Year Start: January

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What Gets Created Automatically

When you create a Legal Entity, OpenBook automatically seeds:

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Chart of Accounts

A complete double-entry accounting structure:
Code RangeTypeExamples
1xxxAssetsCash, Bank, Accounts Receivable
2xxxLiabilitiesAccounts Payable, Tax Payable
3xxxEquityOwner’s Equity, Retained Earnings
4xxxRevenueService Revenue, Product Sales
5xxx-6xxxExpensesOperating Expenses, COGS

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Default Payment Methods

  • Cash
  • Card (Visa/Mastercard)
  • Bank Transfer
You can customize accounts and payment methods later in Accounting → Accounts.

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For Token Holders

As a token holder verifying transactions, the Legal Entity tells you:
  • Which country’s laws govern the business
  • What currency transactions are denominated in
  • What tax rate applies to transactions
All of this is publicly visible on the transparency dashboard.

Next: Create Location

Add a physical or virtual business location