One thing I find fascinating about CO is that it does not require the incorporation of a legal entity to operate. In that sense, it can be seen as a “Decentralized Autonomous Organization”. As such, CO faces the same questions as other DAOs (I remember having a chat about that with Maria from Aragon), the most central being “How does a DAO interact with other legal jurisdictions?”. Think Intellectual Property, Taxes, Law enforcement etc…
It is yet to be validated by law professionals but one way to see it is that COs are just a decentralized General Partnership (Société en Nom Collectif in France). Basically, it is the simplest form of organization: it provides 0 legal protection and is tax transparent. I think a traditional organization (TO) could totally do business with a CO (i.e. invoice a CO) by considering it as a general partnership.
If we consider that a CO does not belong to any jurisdiction, then it is free to apply its own rules. For example, as a CO issues Security Tokens (ST), we are planning on KYC/AMLing all investors in the CO but one could argue that it should not be an obligation.
To conclude, I feel that COs sweet spot is to organize and incentivize a group of independent workers towards achieving a common goal. No legal incorporation is needed. CO can be considered as a General Partnership if it is ever brought into a court. Even though CO have have no access to debt (yet?) and their liabilities should be limited, it still means that people working for a CO would be wise to do it under the umbrella of a legal entity that provides them limited liability (like a LLC, SARL etc…).