Many business owners and entrepreneurs frequently ponder whether they ought to register a trademark before forming their LLC. The response to this query is more complicated than a simple yes or no. It relies on a number of variables, including the type of business and the sector it serves. In this post, we’ll look at the benefits and drawbacks of filing a trademark before forming an LLC and address some related issues. Should My LLC Have Ownership of My Trademark?
Yes, your trademark should be owned by your LLC. Your LLC has the legal authority to possess assets, including intellectual property like trademarks. It may be necessary to transfer ownership to your LLC, which can be a challenging process, if you register a trademark under your personal name and then create an LLC. It is simpler and more practical to apply for a trademark right away using the name of your LLC.
An LLC may own a trademark, yes. In fact, for legal and tax reasons, many companies opt to register their trademarks under the name of their LLC. As a result, the trademark becomes property of the LLC, and any income from licensing or selling it is taxed at the LLC’s rate, which is frequently lower than the personal income tax rate.
The United States Patent and Trademark Office (USPTO) website allows users to submit their own trademark applications for free. A trademark application requires a $275 filing fee for each class of products or services. However, submitting a trademark application can be a difficult procedure, and errors might result in rejection or a mark that is not strong enough to be enforced. Should You First Trademark Your Company Name?
Yes, it’s wise to trademark your company name before starting a firm. By doing this, you can make sure that your company name is legitimately protected and doesn’t conflict with any already-registered trademarks. Additionally, trademarking your company name can increase its value and stop others from using it for competing products or services.
In conclusion, it depends on the kind and sector of your firm whether you need register a trademark before forming an LLC. But before starting your firm, it’s a good idea to trademark your company name and register your trademark under the name of your LLC. In order to make sure that your trademark is powerful and enforceable, you may wish to speak with a trademark lawyer before submitting your trademark application.