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You have the name. You bought the domain. Maybe you designed the logo, created your social media accounts, and even filed paperwork with your state to create an LLC. The state approved your filing, and your new company officially exists.
So your business name is protected now, right?
Not necessarily.
An LLC and a trademark serve two very different purposes. An LLC is a business entity created under state law. A trademark, on the other hand, identifies and protects the words, names, logos, symbols, and other indicators consumers use to distinguish the source of particular goods or services.
For many entrepreneurs, therefore, the question isn’t whether they need an LLC or a trademark. They may ultimately want both. The more important question is how the two work together and when each should be addressed.
Understanding that distinction before investing heavily in a new business name can potentially save an entrepreneur from the considerable expense and frustration of having to rebrand later.
Registering an LLC generally creates a legal business entity within a particular state. Registering a trademark with the United States Patent and Trademark Office can provide federal protection for a brand in connection with specified goods or services.
The U.S. Small Business Administration makes an important distinction between the different ways businesses register names. An entity name protects a business name at the state level, while a trademark can provide protection at the federal level. DBAs and domain names serve still different purposes.
Approval of your LLC name by a state does not necessarily mean the name is available for you to use as a trademark.
When you create an LLC, your state reviews the proposed entity name according to that state’s business-entity naming requirements. Depending upon the state’s rules, this can prevent another entity from registering the same or a sufficiently similar entity name in that state.
But state approval does not necessarily determine whether your use of that name could conflict with somebody else’s existing trademark rights.
Consider a hypothetical entrepreneur who forms Blue Rocket Coffee LLC. The state accepts the filing, so the entrepreneur purchases BlueRocketCoffee.com, designs a logo, orders signs and packaging, opens social media accounts, builds a website, and begins spending money advertising the new brand.
Several months later, the owner discovers that another coffee company has earlier trademark rights involving a confusingly similar BLUE ROCKET mark.
The fact that the Secretary of State approved Blue Rocket Coffee LLC does not automatically resolve that trademark issue. The business owner may now face a potentially expensive decision: continue using and defending the name or change the brand after already investing substantial money in it.
That is why trademark considerations should begin much earlier in the business-building process than many entrepreneurs realize.
Federal trademark protection is also connected to particular goods and services. The USPTO organizes goods and services into 45 international classes, and federal application fees are generally assessed according to the number of classes included in an application.
This is why trademark protection is not simply a question of whether two companies have identical names. One of the central considerations in trademark registration is whether another mark may create a likelihood of confusion when the similarities between the marks and the parties’ respective goods or services are considered.
The practical distinction is between forming the business and protecting the brand.
An entrepreneur can spend months creating an LLC, developing a website, ordering products, printing packaging, creating signs, and advertising a company only to discover that the chosen name may conflict with an existing trademark. Finding that out before making those investments is obviously preferable to discovering it after the business has launched.
For many new businesses, a sensible process begins with selecting several possible brand names rather than becoming immediately committed to one. The entrepreneur can then conduct appropriate trademark research, including a search of existing federal trademark registrations and applications and consideration of potentially conflicting marks.
Once a business owner is comfortable moving forward with a particular brand, the appropriate business entity can be formed and trademark protection can be pursued when appropriate. Domains, social media accounts, websites, packaging, advertising, and other major brand investments can then follow.
Investigate the brand before you build the business around it.
A trademark application can be filed by an appropriate owner, which may be an individual or a business entity depending upon the circumstances. Applicants should take care to correctly identify the owner of the trademark application.
The federal trademark system also allows applications based upon a bona fide intent to use a trademark in commerce. This means an entrepreneur who has not yet launched a new brand may, under appropriate circumstances, begin the federal trademark application process before actual use begins. Additional requirements and government fees apply before an intent-to-use application can ultimately proceed to registration.
This makes trademark planning potentially relevant long before a business officially opens its doors.
Trademark rights and state business-entity registrations operate under different systems. This is another reason entrepreneurs should not assume, “My state approved the LLC, therefore I own the brand.”
Questions involving competing trademarks can depend upon a variety of factors, including which party used a mark first, what goods or services are involved, how similar the marks are, where the marks have been used, whether either party owns a federal registration, and whether consumers are likely to be confused.
The existence of an LLC may be part of the overall factual picture, but an LLC registration itself is not the same as a federal trademark registration.
Trademark protection generally does not give one company ownership of a word for every conceivable product and service. The trademark considerations surrounding a restaurant, for example, may be very different from those involving industrial machinery sold under a similar name.
At the same time, operating in different industries does not automatically eliminate the possibility of a conflict.
The important lesson for entrepreneurs is that a trademark search should not be limited to finding an identical business name. Potentially confusingly similar names and the goods and services associated with those names can also be important.
Imagine that a new business owner wants to use BRIGHT BEAR and searches only for those exact words. Finding no identical registration, the entrepreneur concludes that the name is available.
But potentially relevant records could include names such as BRITE BEAR, BRIGHTBEAR, THE BRIGHT BEAR, or other similar marks used in connection with related goods or services.
Trademark examination can involve similarities in appearance, sound, meaning, and overall commercial impression. The fact that two names are not spelled identically does not necessarily mean that no potential conflict exists.
Trademark searching can be more complicated than simply typing your proposed business name into a search box.
The practical question now becomes whether potentially conflicting trademark rights exist around the name you are using.
Before investing substantially more money in the brand, it may make sense to research the trademark landscape surrounding the name. The earlier a potential problem is identified, the more options a business owner may have.
Discovering a naming issue before ordering $50,000 worth of packaging is one thing. Discovering it after the packaging has been delivered is something else entirely.
One misconception has remained remarkably persistent throughout those years: business owners frequently assume that because a state accepted their company name, the name must also be available for them to use as a brand.
The misunderstanding is understandable. An entrepreneur searches the Secretary of State’s database. The name appears available. The state accepts the LLC filing. Official formation documents arrive. Everything about that process feels like confirmation that the entrepreneur now owns the name.
But business-entity registration and trademark registration answer different questions.
The situations business owners most want to avoid are those in which a potential naming issue is discovered only after substantial value has been built around the brand. By that point, changing the name can mean changing websites, email addresses, advertising, social media accounts, packaging, signs, marketing materials, and potentially years of accumulated customer recognition.
A business name can be changed relatively easily on a piece of paper. A brand with years of investment and goodwill behind it can be much harder to replace.
That is why entrepreneurs should consider trademark protection as part of the beginning of the business-building process rather than something to think about only after a company becomes successful.| Type | What It Does |
|---|---|
| LLC | Creates a business entity under state law and provides a legal structure through which a business can operate. |
| DBA | Allows a person or company to operate under another business name where applicable. It does not by itself create federal trademark protection. |
| Trademark | Identifies the source of particular goods or services. Federal registration can provide important nationwide benefits and protections associated with a brand. |
| Domain Name | Provides control over a particular internet address while the registration remains active. Domain ownership does not automatically create trademark rights. |
Your LLC establishes your business entity. Your trademark helps protect the brand identity associated with your goods or services.
Trademark protection can become particularly important for businesses that expect to operate under a valuable brand, attract customers across state lines, sell online, advertise extensively, license their names, expand into additional markets, or eventually sell the company.A successful business does not merely accumulate equipment, inventory, and customers. Over time, its brand itself may become one of its most valuable assets.
That means an application covering one class ordinarily carries a $350 base government filing fee, while an application covering two classes would ordinarily carry $700 in base government filing fees.
Additional USPTO fees can apply depending upon how an application is prepared and its filing basis. Intent-to-use applications can also require additional filings and government fees later in the process before registration.
Government filing fees are separate from any fees charged by a trademark filing service such as The Trademark Company.
Because USPTO fees can change, applicants should always verify current government fees before filing.
The USPTO publishes current processing-time information showing how long applicants are typically waiting for initial examination and other stages of the registration process. Those numbers change over time as application volume and USPTO processing capacity change.
The important point for a new business owner is that trademark registration is not instantaneous.
That makes the idea of “I’ll build the company first and worry about the trademark once we’re successful” potentially problematic. By the time a company becomes successful, substantial money and goodwill may already be invested in the brand.
Trademark strategy is often much more useful when considered early.
After an application is submitted, it enters the USPTO examination process. A USPTO examining attorney reviews the application to determine whether it satisfies federal registration requirements. The examiner may approve the application to move forward or determine that additional information or corrections are required.
If the USPTO identifies an issue, it may issue what is known as an Office Action. Depending upon the application, the process can include filing, USPTO examination, responding to an Office Action if one is issued, publication for opposition, and ultimately registration. Intent-to-use applications have additional requirements that must be completed before registration.
Not every trademark application ultimately registers. Filing begins the process; it does not guarantee the outcome.
Trademark protection generally becomes stronger as a mark becomes more distinctive. Generic terms generally cannot function as trademarks for the goods or services they name. Descriptive terms may also face limitations. More distinctive trademarks include suggestive, arbitrary, and fanciful marks.
The name that most literally describes your business is not necessarily the name capable of receiving the strongest trademark protection.
A distinctive brand may initially require more marketing to teach consumers what the company does. If that brand becomes successful, however, its distinctiveness can become a significant business asset.Logos evolve. Fonts change. Colors change. Businesses redesign websites and update their visual identities. The underlying brand name, however, can remain unchanged for decades.
That does not mean every business should file its name before its logo. Filing decisions depend upon the particular brand and circumstances, and many companies ultimately seek protection for both. The important point is that entrepreneurs should think about which elements of their brand are likely to carry the greatest long-term value.
A trademark application involves more than simply entering a business name into an online form. Applicants must provide information about the owner of the mark, identify the appropriate goods and services, select the appropriate filing basis, address applicable trademark classes, and provide required information and specimens where applicable.
Errors or omissions can delay an application, increase costs, or create other problems during the registration process.
That’s where The Trademark Company can help.
Since 2003, The Trademark Company has helped more than 100,000 entrepreneurs and business owners with trademark filings and business formations. We are a trademark filing company—not a law firm—and our focus is making the trademark filing process easier, more understandable, and more affordable for entrepreneurs who want assistance preparing and filing their applications.For business owners who would rather concentrate on building their companies than figuring out every step of the USPTO filing process themselves, The Trademark Company offers straightforward trademark filing services designed specifically for entrepreneurs and small businesses.
You build the brand. We can help you file to protect it.
Next, conduct preliminary business-name and trademark searches. Remember that trademark searching should go beyond looking only for exact matches. Potentially similar names involving related goods and services may also deserve consideration.
Once you have selected the name you intend to use, determine the appropriate business structure and form the company. At approximately the same stage, consider whether federal trademark registration makes sense for the brand. Important digital assets such as domains and social media accounts can also be secured as the company prepares to launch.
Then comes the fun part: build.
Create the website. Develop the products. Advertise. Find customers. Make sales. Build recognition around the name.A little more attention to the brand at the beginning can potentially prevent much larger complications later.
Usually, that instinct is a strength.
But there is one area where moving quickly without doing the homework can become very expensive: your brand name.
Before building a company around a name, take the time to understand what you’re building on. An LLC can establish the legal entity through which you operate your business. A trademark can help protect the identity customers associate with that business.
Your LLC is your business entity. Your trademark is your brand.
For many entrepreneurs, therefore, the answer isn’t LLC or trademark. It’s understanding how the two work together and addressing both at the appropriate time—before the brand becomes too valuable to easily change.Whether you’re ready to form an LLC, file a federal trademark application, or do both, we’ve built our services around one idea: make the process easier and more affordable for entrepreneurs.
Starting a business is complicated enough. Filing the paperwork shouldn’t have to be.
Start your LLC with The Trademark Company. File your trademark with The Trademark Company. Then get back to what matters most—building your business.
The Trademark Company is a trademark filing and business formation service and is not a law firm. The information contained in this article is provided for general informational purposes and should not be construed as legal advice. Government fees, requirements, and processing times are subject to change.
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