Wednesday, July 13, 2022
Trademark vs LLC – What are the Differences Between Trademarks and LLCs?
Trademarks and LLCs share some similarities because they are legal business tools. Still, a comparison of a trademark vs LLC reveals that they are fundamentally different in five ways:
1. What they protect
2. Where they offer protection
3. How to get them
4. What they cost
5. How long they take to get
Legal Protections: Trademarks protect brands, while LLCs are legal business entities that protect owners’ personal assets from lawsuits and bankruptcies.
Where they offer protection: Trademarks are governed by the Federal Trademark Statute, and federal trademark protections extend nationwide. LLCs are governed by the laws of the state in which they are formed and are protected only within the state in which they are created.
How to get them: Trademarks are issued nationally by the U.S. Patent and Trademark Office (USPTO). LLCs are issued at the state level by the states’ secretaries of state.
Costs: The cost to get a trademark is set by USPTO, which charges the same filing fees regardless of location. In contrast, each state determines its own LLC filing fees.
Time: The time it takes to set up an LLC varies by state, but it’s typically less than a week. A federal trademark, on the other hand, often takes more than a year to get approved.
Additional differences between trademarks and LLCs include:
• Trademarks can be registered with the USPTO, while LLCs cannot.
• Trademarks protect brands and logos, while LLCs protect business structures.
• Trademarks can be bought and sold, while LLCs cannot.
• Trademarks can stop others from using your brand or logo, while LLCs cannot.
• Trademarks are protected by either federal or state law, while LLCs are governed by state law
• Trademarks can be used to identify both goods and services, while LLCs can only be used to identify businesses
Generally, an LLC protects your assets, while a trademark protects your brand.
About Michael Kondoudis
For more than twenty years, Michael Kondoudis has been the go-to trademarking expert for businesses of all shapes and sizes. Michael is a USPTO-licensed trademark and patent attorney, educator, speaker, and author of the Amazon best-seller: Going From Business to Brand. He is also an authority trusted by national news media on major trademark stories involving NFTs and the Metaverse. For more information, visit www.mekiplaw.com.