THE BASICS
Why an LLC isn't IP protection
Forming an LLC or corporation registers a company name with a state for business purposes; by itself, it creates no trademark rights.
An LLC or corporation is useful. It can keep business and personal money apart, and it's how many founders sign contracts and open accounts. But the state filing only records the company's name for doing business in that state.
By itself, it creates no trademark rights, and it doesn't cover logos or products. Another business may still use a similar name as a brand. Registering a DBA, a domain or a social handle doesn't, by itself, create trademark rights either.
What a company can do is own IP. Trademarks, copyrights and patents can be held by a company, which is one reason founders think about which of their companies should own it.
Why this matters to your business
Many founders believe the LLC filing covered their name, and only learn otherwise when another business turns up with a similar brand. Knowing the difference early helps with planning. It also makes it clearer that who holds the IP is a separate question, one investors and buyers commonly check.
What an attorney will want to know
- The exact legal name of each company you've formed
- The state where each one is registered
- Any DBAs, domains and social handles registered so far
- When the brand name was first used with customers
Ask your attorney
Which of my companies should own the mark?
Does it matter that my company name and brand name are different?
General information, not legal advice. An attorney confirms how this applies to you.