Starting a business involves many important decisions, including choosing a business structure and protecting your brand. Two common steps for entrepreneurs are forming a Limited Liability Company (LLC) and trademarking their brand name or logo. But which should you do first? In this blog post, our trademark attorney will explore the considerations for deciding between forming an LLC or trademarking your brand first.
Forming an LLC provides limited liability protection, separating your personal assets from your business liabilities. This shields your personal assets from creditors and legal claims against your business, reducing your personal risk.
An LLC offers flexibility in business management and taxation, allowing you to choose how you want your business to be taxed—either as a sole proprietorship, partnership, S-corporation, or C-corporation.
Trademarking your brand name, logo, or slogan protects your brand identity and prevents others from using similar marks. It gives you exclusive rights to use your brand in commerce and allows you to enforce those rights against infringers.
A registered trademark provides legal recourse against anyone who uses your brand without permission. It also prevents others from registering the same or similar mark, reducing the risk of confusion in the marketplace.
If protecting your brand identity is a top priority, you may want to consider trademarking your brand first. A registered trademark provides immediate legal protection and prevents others from using or registering similar marks. On the other hand, if you file a trademark application before creating your LLC, you will need to assign it to your LLC later on which carries with it additional government fees.
Consider the stage of your business when deciding between an LLC and trademark. If you’re just starting and haven’t established a strong brand presence yet, forming an LLC may be the initial priority. However, if you’ve already developed a distinct brand identity, trademarking should take precedence to protect your investment.
Deciding whether to form an LLC or trademark your brand first depends on your business priorities and stage. If brand protection is paramount, trademarking should may precedence. However, if establishing a legal business entity and limiting personal liability are your immediate concerns, forming an LLC may be the first step. You can always file your trademark application shortly after your LLC is formed. Consulting with a trademark attorney can provide invaluable guidance and ensure that both your business structure and brand identity are legally protected. Don’t delay—take proactive steps to safeguard your business and brand today. Contact us today for a free consultation.
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