In the official announcement made on July 16th, Otonomos has confirmed the launch of their OtoCo service. OtoCo is, basically, a blockchain-based online tool for launching a Delaware LLC. It works on the Ethereum blockchain and uses an ETH wallet for smart contracts.
OtoCo.io allows a user to form a legal entity in literally 3 clicks. This means that the painful LLC registration process is now extremely user friendly, swift, and free during the launch. Moreover, it can be used by entrepreneurs from all around the globe, making it a perfect opportunity to start a business as painlessly as possible.
How To Use OtoCo to Start a Company
To begin the registration process, a potential entrepreneur should open the OtoCo website in the Web3 browser. There, a really simple user interface awaits, and it is divided into three phases.
During the first phase, a person has to perform a name check to see if the desired company name is available.
Upon passing the name check, the aspiring businessman will see the future address of his to-be Delaware LLC. After the confirmation, a user has to connect the Ethereum wallet to the OtoCo system in order to proceed.
All users have to note that this registration is the real thing and it is tied to the specific Ethereum wallet address. Therefore, please, make sure to back up the wallet before completing the process.
After making sure that everything is in order, a user finishes the registration with a transaction signature otoco.eth (the assembler smart contract).
The only thing a new entrepreneur will have to pay is the gas price for the transaction. No additional registration costs are applicable for the launch of the new Delaware LLC this way.
The registration takes as much as the transaction confirmation. This means approximately a few seconds, depending on the overall traffic on the Ethereum blockchain.
What is Otonomos?
The team behind OtoCo, Otonomos, is a company that helps entrepreneurs form legal entities in all the main jurisdictions around the world. It was founded by Han Verstraete in 2015 under the legal name OtoCorp Pte. Ltd.
Regarding this last piece of innovation coming up from their ranks, Otonomos representative explains:
“We believe instant legal wrappers are the equivalent of shipping containers: standardized, shippable boxes that can easily be loaded with value, hold assets, and store property. Shipping containers lead to an explosion in international trade over the last decades. Likewise, instant companies will lead to a wave of entrepreneurship in a world lacking jobs for life in which value is increasingly moving online.“
Furthermore, the company explains how about half a million companies are formed every year in Delaware. Thus, OtoCo is a perfect vehicle for what Otonomos calls the under-entreprneured.