Trademark vs LLC
When launching a new business or brand, one of the most common questions entrepreneurs ask is: Should I get a trademark or form an LLC first? It’s a smart question — and the answer depends on what kind of protection you need.
This guide breaks down the difference between a trademark and LLC, when to secure each, and why a comprehensive trademark search should always come first.
Start with the Basics — What Each Does
An LLC (Limited Liability Company) is a business structure. It protects your personal assets — such as your home, car, and savings — if your business faces debts or lawsuits. In short, an LLC separates your personal and business finances.
A trademark, on the other hand, protects your brand identity. That includes your business name, logo, or slogan — anything that identifies your goods or services in the marketplace.
Think of it this way:
- LLC = business setup and liability protection
- Trademark = brand ownership and identity protection
They serve very different purposes, and one doesn’t replace the other.
Why Both Are Important but Not the Same
Many small business owners assume that forming an LLC automatically protects their brand name. Unfortunately, it doesn’t.
- Forming an LLC only prevents another business in your state from registering the same entity name. It doesn’t stop someone in another state from using that same name as a brand or trademark.
- Registering a federal trademark gives you exclusive rights to use that brand name for your goods or services nationwide — but it doesn’t create a business entity or shield you from personal liability.
For complete protection, many successful businesses use both:
- The LLC for structure and liability protection.
- The trademark for brand and market protection.
Which Comes First — Trademark or LLC?
While you can technically form your LLC before or after trademarking, many experts recommend conducting a trademark search first.
According to the U.S. Small Business Administration (SBA) and Forbes, checking trademark availability before you register your business name can prevent serious headaches later. If another company already holds a federal trademark for your name (or something confusingly similar), you may be forced to rebrand — even after forming your LLC.
This is why it’s smart to do a trademark search before registering your LLC. A little research now can save you from costly changes down the road.
The Role of Comprehensive Trademark Research
Before filing a trademark application, it’s essential to understand what a comprehensive trademark search covers. A basic online search isn’t enough — many conflicts come from marks that are similar, not identical.
A thorough search should include:
- Federal trademarks: Review the USPTO database for active and pending trademarks.
- State trademarks: Check individual state databases to find regional registrations.
- Common Law usage: Search for unregistered names in use — such as local businesses, websites, social media handles, and advertising. These users may still have legal rights through “first use.”
- Similar marks: Look for names that sound alike, look alike, or mean something similar.
- Related goods/services: Even if your products differ, a related business can block your application if consumers might confuse your brands.
Comprehensive research helps ensure your brand is clear and available — reducing the risk of rejection or legal disputes after filing.
Fictitious Example
Imagine a skincare startup called GlowHaus LLC forms their company, launches their website, and starts selling products. Months later, they discover another brand, GLOW HOUSE, already holds a federal trademark for cosmetics.
Even though GlowHaus is legally registered as an LLC in their state, they can’t use the name nationwide because it infringes on the existing trademark. The startup is forced to change its name, packaging, and marketing — a costly rebrand that could’ve been avoided with a trademark search from the start.
How to Protect Your Brand the Right Way
If you’re deciding between registering a business name vs trademark, here’s the ideal order of steps:
- Start with a comprehensive trademark search. Make sure your name is available at the federal, state, and common law levels.
- Secure your business structure (LLC or other entity). This gives your business legal standing and liability protection.
- File your trademark application. Once your business is set up and your name clears the search, protect your brand name nationwide with a federal trademark.
This layered approach ensures both your business and your brand are protected from every angle.
Protect Your Brand with Confidence
Before you file your LLC or trademark application, take time to verify that your name is available. A professional search can uncover potential conflicts early and give you peace of mind.
TradeMark Express specializes in comprehensive federal, state, and common law trademark research to help business owners like you launch with confidence.
Ready to protect your brand name the right way?
Contact TradeMark Express today to start your comprehensive trademark search.