Differences Between an LLC Name and a Trademark

The differences between a Limited Liability Company (LLC) name and a trademark are frequently misunderstood in business and law. While both are crucial to a business's identity, branding, and legal protection, they serve different purposes and offer different types of protection under the law. Importantly, having a registered LLC name does not also provide trademark rights.

LLC Names

An LLC name is a business entity's official legal name, registered in its state of formation. The registered LLC name identifies your company on all formal documents, including incorporation documents, tax filings, and legal contracts. The primary role of an LLC name is to uniquely identify your business within its state of registration. This ensures that no other entity within the same state can have the same name or one that's too similar. This unique identification is crucial to your business's legal standing and recognition.

LLC names are registered and protected at the state level. If your business operates in multiple states, you must ensure your name is available and registered in each state. Accordingly, an LLC name does not prevent another business from using a similar name in another state or using your name as a trademark for their goods or services, provided there is no likelihood of confusion among consumers.

Trademarks

A trademark is a term, sign, design, or expression that identifies and distinguishes the source of one entity's goods or services from those of others. Trademarks can include names, logos, slogans, and other branding elements.

Suppose a trademark is registered with the USPTO. In that case, it provides exclusive rights to use the mark with the goods or services identified in the registration across the entire United States, regardless of state boundaries. Trademarks protect a company's brand identity, ensuring that no other business can use a name or logo that is "confusingly similar" to the registered mark in a way that could confuse consumers regarding the source of those goods and services. A company can trademark various elements that constitute its brand identity, not just the company name, including product names, logos, and slogans.

Key Differences

An LLC name offers legal identity and state-level protection. Conversely, a registered trademark provides broader, nationwide protection for the branding associated with goods or services, preventing others from using confusingly similar marks.

An LLC name identifies the legal entity of the business. A trademark identifies and protects the brand and its reputation in the marketplace.

Registering an LLC name involves a state-level process, usually through the Secretary of State's office. Trademark registration is a federal process handled by the USPTO.

Should I Trademark My LLC Name?

Entrepreneurs must strategically use LLC names and trademarks to effectively build and safeguard their brands. While the processes and purposes of each may differ, they form a critical foundation for a business's legal and commercial identity. Understanding the distinction between an LLC's name and a trademark is essential for business owners looking to safeguard their business identity and brand. While an LLC name establishes your business's legal identity within a state, a trademark offers comprehensive national protection for your brand, preventing others from using similar marks that could confuse your customers. Businesses should consider both aspects to protect their legal and brand identities comprehensively.

How TCP Law Can Help

A trademark attorney at TCP Law can help develop a business's branding strategy, including preparing, filing, and prosecuting trademark applications before the USPTO.

For assistance with branding or with any other trademark issues, please contact TCP Law at info@tcplawfirm.com or 917-612-1059.