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LLC and Trademark Differences


LLC and Trademark Differences

There is a common misconception that registering your business as a Limited Liability Company or LLC fully protects your brand and company. This is not the case. There are some distinct LLC and Trademark differences that every business owner should be aware of before opening their business. Let’s take a look at each to see if your business needs to be registered as an LLC, trademarked, or both.

LLC

An LLC or Limited Liability Company and is a business entity that you use to protect your business from your personal assets. An LLC is important and used on the state level. The purpose is to protect against someone trying to sue your business. With an LLC they cannot take any of your personal assets, in essence it puts a wall between you and your business. Another reason you need an LLC for your business is that you need it to get a business bank account, business loans, business grants and other things of that nature. To obtain a legal LLC you would go to the secretary of the state website for your state, check the availability of your business name, if it is open, they will allow you to file the proper paperwork to register your business as an LLC. It is important to note that an LLC operates and protects you on a state level. Your business LLC is governed by your state laws and no one within your state can use your business name to do business. However, if your business is in Lousiana and someone in Texas wants to open a business with the same name, there is nothing to protect you against that with an LLC. For example, if someone was to open a business in Lousiana called ‘Pie King’ register it as an LLC and begin operating, that business is fully legal and registered within Lousiana. However, if someone else who lives in Texas wants to open up the same business called ‘Pie King’ they can register it in their state and your LLC has no power against it. This is why an LLC does NOT protect your brand, it protects your business entity from your personal assets.

Trademark

A trademark registered with the USPTO (United States Patent and Trademark Office) puts the whole nation on notice that your brand is being used. Therefore this means that no one else in the nation can use the same brand that you are using because you have a federally registered trademark. This shows you have done your research and know that you are not infringing on anyone’s trademarked brand. Using the same example of ‘Pie King’, if you own ‘Pie King’ and have a federally registered trademark then no one else in the nation can use that brand for their business. This means the person in Texas cannot open and operate a business under the brand ‘Pie King’ because they would be infringing on your business in Lousiana. This is why trademark attorney Briana Robertson says that an LLC does not protect your brand but a federally registered trademark does.

LLC and Trademark Differences

LLC’s are governed by state law and are only valid within the laws of the state in which it is registered. Trademarks are federally governed and puts the whole nation on notice that your brand is protected on a federal level. If all you have is an LLC someone can take your entire business and replicate it in another state and that is perfectly legal, but if you have a federally registered trademark on your brand you have the legal means to stop anyone from operating under your brand in any state. In short, an LLC protects your business but not your brand and a Trademark protects your brand but not your business. This is why trademark attorney Briana Robertson recommends and encourages you to have both, so that your business and your brand are protected especially if you plan to do business outside of your state. Hopefully, this has helped you to understand the LLC and Trademark differences. If you are looking to build your business or brand and would like assistance on making sure it is legal and protected, find an experienced entrepreneur advocate attorney like Briana Robertson to help you. An experienced attorney will walk you through the trademark process and help to ensure you have all you need to legally protect your business.


Schedule a Consultation

Are you looking to build your business or brand? Do you need assistance from an experienced and professional trademark attorney? Contact the Law Office of Briana C. Robertson and Schedule a Consultation today!

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