When launching a new business, choosing the right name is an exciting first step — but it’s also a legal one. Many entrepreneurs ask: “Should I trademark my business name before forming my LLC?”
The short answer: Not necessarily — but understanding the timing and purpose of forming an LLC vs. trademarking your business name can help you protect your brand and make smarter legal decisions.
In this article, we’ll break down:
- The differences between registering an LLC and a trademark
- The pros and cons of trademarking before or after LLC formation
- What to consider before naming your company
- Best practices for protecting your business legally
LLC vs. Trademark: What’s the Difference?
LLC Formation
- Registers your business with the state
- Offers limited liability protection
- Reserves your business name only in that state
- Does not protect your brand name nationwide
Trademark Registration
- Registers your business name or logo with the U.S. Patent and Trademark Office (USPTO)
- Grants exclusive rights to use the name nationwide within your industry
- Offers strong legal protection from imitators and infringement
- Not required to form or operate a business — but highly recommended
Think of an LLC as your legal business entity and a trademark as your brand protection.
Should You Trademark First or Form the LLC First?
Here’s what to consider:
Option 1: Form the LLC First
Pros:
- Ensures your business name is legally available in your state
- Lets you begin operations, open a bank account, get an EIN, and start marketing
- Easier and less expensive upfront
Cons:
- Someone else could trademark the name federally if you haven’t already
- You may need to rebrand if your name infringes on an existing trademark
Option 2: Trademark First
Pros:
- Secures nationwide rights to the business name in your industry
- Prevents others from using or registering a similar name
- Adds long-term value to your brand
Cons:
- Takes 6–12 months to complete the federal trademark process
- Costs $250–$350 per class of goods/services
- May delay launching your business if done first
Most entrepreneurs form the LLC first, then apply for the trademark once the business is operational and gaining traction.
Best Practice: Do a Name Availability Search First
Before forming your LLC or applying for a trademark, do your due diligence:
- Search your desired business name with your Secretary of State’s online database
- Search the USPTO trademark database (TESS) to ensure it’s not already federally trademarked
- Check domain availability for your website
- Do a quick Google and social media check for existing brands
This step ensures your name is unique, memorable, and legally safe to use.
Why Trademarking Is Important (Eventually)
Even if you don’t trademark your business name before forming your LLC, you should still consider doing it as soon as possible, especially if:
- You plan to scale your brand nationally
- You operate online and sell to customers across state lines
- Your name is a key part of your marketing or intellectual property
- You want to license or franchise your brand
Without a trademark, your legal protections are limited to your state — and someone else could register the name federally.
Can You Trademark a Name That Belongs to Your LLC?
Yes. You can trademark your LLC’s name as long as:
- It is used in commerce (on websites, packaging, marketing materials, etc.)
- It is not generic or overly descriptive
- No one else already owns the trademark for similar goods/services
A trademark attorney can help file the application correctly and increase your chances of approval.
Final Thoughts
So, should you trademark your business name before forming your LLC?
If you’re still deciding on a name or plan to operate in a single state for now, it’s perfectly fine to form your LLC first — then trademark once your brand is established. But if you’re building a scalable or online-first business, trademarking early can prevent future legal headaches and solidify your brand identity.
At FormLLC, we help entrepreneurs register their LLCs, file EINs, prepare operating agreements, and guide them through trademark registration — all in one place. Protect your name, your business, and your future.
