Do You Copyright a Name?

One of the most important choices you must make when beginning a business is what to call it. However, many business owners frequently ponder whether they may copyright their company name. No, a name cannot be protected by copyright. Only original works of authorship, such as books, music, and artwork, are protected by copyright laws. Instead, you can safeguard your company name by filing for trademark protection.

A trademark is a design, word, or phrase that identifies and sets one company’s products and services apart from those of another. Legal defense against rival businesses utilizing the same name for their operations is provided by trademark registration of your company name. It’s crucial to remember that registering your trademark doesn’t ensure that you’ll be the only person using that name. If someone else tries to utilize your trademark, you might still need to file a lawsuit.

Whether a corporation and an LLC can share the same name is another frequently asked subject. Typically, the answer is no. The state forbids the registration of another company with the same name after you have registered your LLC or corporation. There are, however, several exclusions to this rule. They could be able to use the same name, for instance, if the two companies are in separate industries.

While creating an LLC has several advantages, such as restricted liability protection, there are drawbacks to take into account. The possibility of greater taxes is one of the key disadvantages. An LLC is treated separately from a sole proprietorship for taxation purposes. This indicates that the owner’s personal tax return is where the business’s profits and losses are disclosed. There may be more taxes as a result of this, depending on the LLC’s income.

You are liable for paying both self-employment and income taxes as a lone proprietor. As a sole owner, it is advised that you set aside 25–30% of your income for taxes. Nevertheless, this may change based on your income and deductions.

Finally, operating as a sole owner has drawbacks. The biggest drawback is uncapped personal culpability. This implies that your personal assets may be at danger if your firm is sued or goes into debt. A solo proprietorship could also have trouble attracting customers and clients and have limited access to finance.

In conclusion, even though a name cannot be protected by copyright, your company name can be by registering it as a trademark. Understanding the possible drawbacks of establishing an LLC and operating as a sole owner, such as increased taxes and personal liabilities, is also crucial. Researching the proper business structure before launching your venture is crucial. You should also speak with a legal or financial expert.