Many new business owners assume that registering their business name as an LLC automatically protects it nationwide. Unfortunately, that’s one of the most common misconceptions in business law. Forming an LLC gives you certain legal benefits, but it does not grant you ownership of your business name in the way a trademark registration does.
In this article, we’ll explain the difference between an LLC and a trademark, why relying on your business registration alone can leave you unprotected, and how to properly safeguard your brand name.
LLC Registration vs. Trademark Protection
When you form an LLC with your state, you’re registering your business name only within that state and only for business entity purposes. The state simply ensures that no other company in the same jurisdiction has that exact name. It doesn’t stop anyone in another state from using or trademarking the same name.
A trademark, on the other hand, is a federal protection through the U.S. Patent and Trademark Office (USPTO). It protects your brand name, logo, or slogan in connection with the goods or services you offer across the entire United States. Once registered, you gain exclusive rights to use that name in commerce nationwide.
Example: Why an LLC Isn’t Enough
Imagine you start “Sunrise Coffee LLC” in Georgia. You operate locally and register your LLC with the Georgia Secretary of State. A few months later, someone in California files for a federal trademark for “Sunrise Coffee” for the same type of goods: coffee beans, mugs, and merchandise.
If their trademark gets approved, they could legally stop you from using “Sunrise Coffee” on your products or in online sales outside Georgia. You may even have to change your business name, rebrand your packaging, and lose your online presence–even though you had the LLC first.
What a Trademark Does That an LLC Can’t
- Nationwide protection: A federal trademark gives you exclusive rights across the entire U.S.
- Legal presumption of ownership: If someone infringes your brand, a trademark provides a strong basis to take legal action.
- Brand value: A trademarked name increases your company’s value and credibility with investors, partners, and customers.
- Online protection: It helps you protect your domain name, social media handles, and online sales from copycats.
How to Protect Your Business Name the Right Way
If your business name is important to your brand identity, trademark it. The process begins with a USPTO trademark search to ensure the name is available and not confusingly similar to existing marks. After filing, your attorney can monitor for potential infringements and help you maintain your rights.
At Landry Legal, PLLC, we help businesses and creators nationwide register trademarks and protect their brands. Whether you already have an LLC or are just getting started, our team can make sure your name is properly protected before you invest in marketing or expansion.
Final Takeaway
Forming an LLC is a smart first step, but it’s not the finish line for brand protection. Without a federal trademark, your business name can still be used by someone else in another state. Don’t wait until that happens to find out the difference.
📞 Call Landry Legal, PLLC at 888-914-0011 or email us at contact@landrypllc.com to protect your business name today, or visit https://landrypllc.com/trademark-services/ to learn more.