llc vs trademark
A trademark is any symbol or word that identifies the source of goods or services. Trademarks can be as simple as the Nike swoosh or as complex as the McDonald’s arches.
Trademarks differ from patents and copyrights in that they only protect brand identity, not the invention itself.
Trademark vs LLC: Which comes first?
One of the inquiries we hear the most from clients starting their business is, “Which entity should I choose: a trademark or an LLC?” The appropriate way to respond to this query is in the context of your overall business goals and objectives.
We recommend that startups select an LLC as their primary business structure. However, some important distinctions between trademarks and limited liability companies may make one a more appropriate choice than another, depending on your specific circumstances.
What is a trademark?
A trademark is a mark that identifies and distinguishes the source of goods or services.
A word, phrase, symbol, design, or combination can constitute a trademark. of these components used to recognize and identify the source of goods or services.
What is an LLC?
Among corporate structures, the limited liability company (LLC) is well-known that provides many benefits of both a corporation and a partnership.
LLCs are lovely because they offer liability protection to their owners, just like corporations, but are less complicated to establish and run than corporations.
Differences between Trademark vs. LLC
A trademark is a type of intellectual property protection, while an LLC is used to protect assets within the business. Trademarks protect brand names, logos, and other ways you represent your company’s identity.
A trademark prevents others from using similar marks that confuse customers or damage your reputation as a business owner.
Do I need both for my business?
The decision to file for a trademark is a personal one and should be based on the goals you have for your business.
Trademarks help protect brand names and logos, so if you don’t want other companies using them, it’s worth considering filing for one. On the other hand, LLCs offer limited liability protection from lawsuits.
If your company falls somewhere between these two options, there may be a third option that suits your needs better: trademarking some aspects of its name while incorporating them as an LLC at the same time.
What should you buy first when starting a business?
The first thing you should do when starting a business forms your LLC.
This is because, in most states, LLCs can file their trademark applications, whereas corporations cannot. This means that if you register a trademark using your corporation, it must be done by an attorney specializing in brands.
This could be costly and time-consuming, mainly if your business name isn’t available as an acronym or abbreviation.
Additionally, your LLC must establish proof of use of the mark. Without specifying evidence of service, any registration would likely be rejected later on down the road if someone challenges its validity
because they think you’re trying to mislead consumers into thinking they are affiliated with them when they aren’t.
Conclusion
You can form a trademark, but you can also create an LLC. You can develop a brand, but you can also include an LLC. You can set a trademark, but you can also form an LLC. You can have a trademark, but you can also create an LLC.