Congrats! You’re taking a step towards thinking like a CEO executive: planning for the future and thinking about the legal aspect of your business! There is no “correct way.” You need to choose the best option for YOU and YOUR business!
So what are some business entity options to choose from?
Well here are some that your state most likely offers. When choosing an entity form, you are choosing one that is authorized by the state where the business will be located.
- Sole Proprietorship
- Limited Liability Company
So How do I choose?!
Let’s start with these questions:
- Who is running this business? Just you, or do you have partners?
- How do you want to pay taxes?
- How much personal liability do you want to have?
- Do you need to raise money?
- What is the risk level of the type of business you’re forming?
These are just some basic questions to consider. Many states also have specific rules of their own! Speaking with a lawyer to go over your options & choose what’s right for YOUR BUSINESS is definitely a good use of your time & money! 💸
Don’t forget that when you create an LLC or corporation or other business entity you chose a name that wasn’t already in use in your state. This doesn’t protect you from someone in another state using the same (or similar) name as you! This doesn’t even usually protect you from someone in your own state having a similar sounding name (aka it could confuse your customers/clients if it’s in the same business area).
There’s also plenty of people operating businesses as sole proprietors, which aren’t formally registered. So those people could be using your name in your state or another state.
So what does all this mean?
TRADEMARK REGISTRATION! Having a ®️ (registered trademark™️):
✔︎ Protects your brand (within your business area) in the U.S. from anyone using the same name
✔︎ Protects your brand from anyone using a confusingly similar name (within your business area)
✔︎ Gives you ownership over your mark
✔︎ Right to send cease & desist letters to copycats / confusingly similar
✔︎ Right to sue for infringement
Let Karana IP get you Started Up!
If you have a new business venture Contact Karana IP Law, LLC, today if you have questions about the selection and formation for your business. Set up a Free Consultation and let Karana IP create a custom startup package for your business that includes intellectual property registrations.