Should I own my trademark as an individual owner or through an entity?

Benefits of owning a trademark through an individual:

• Simplicity: It is simpler and less expensive to apply for a trademark as an individual than as a corporation.
• Flexibility: Individuals have more flexibility in how they use and license their trademarks. For example, an individual can easily transfer ownership of a trademark to another individual, or they can license the trademark to another business.
• Personal control: Individuals have more personal control over their trademarks. This is because the trademark is owned by the individual, not by a separate business entity.

Drawbacks of owning a trademark through an individual:

• Personal liability: If an individual trademark owner is sued, their personal assets could be at risk. This is because there is no separation between the individual and their business.
• Difficulty transferring ownership: If an individual trademark owner wants to sell their business, they may have difficulty transferring ownership of the trademark. This is because the trademark is owned by the individual, not by the business.
• Lack of credibility: Some customers and businesses may view trademarks owned by individuals as being less credible than trademarks owned by corporations.

Benefits of owning a trademark through a corporation:

• Limited liability: Corporations offer limited liability protection to their owners. This means that if the corporation is sued, the personal assets of the owners are generally not at risk.
• Ease of transfer: It is easier to transfer ownership of a trademark owned by a corporation than a trademark owned by an individual. This is because the trademark is owned by the corporation, not by the individual owners.
• Credibility: Corporations are generally viewed as being more credible than individuals. This is because corporations are seen as being more stable and established.

Drawbacks of owning a trademark through a corporation:

• Complexity: It is more complex and expensive to apply for a trademark as a corporation than as an individual.
• Less flexibility: Corporations have less flexibility in how they use and license their trademarks. For example, a corporation must usually go through a formal process to license its trademark to another business.
• Less personal control: Individuals have less personal control over trademarks owned by corporations. This is because the trademark is owned by the corporation, not by the individual owners.

Which option is right for you?

The decision of whether to own a trademark through an individual or a corporation depends on your specific circumstances. If you are a small business owner with limited assets, you may want to consider owning your trademark through an individual. This will give you more flexibility and control over your trademark, and it will be less expensive to apply for and maintain. However, you should be aware of the risks of personal liability.

If you are a larger business owner or if you are planning to sell your business in the future, you may want to consider owning your trademark through a corporation. This will provide you with limited liability protection and make it easier to transfer ownership of the trademark in the future. However, it will be more complex and expensive to apply for and maintain a trademark owned by a corporation.

If you have any questions, please consult with an attorney at WINTER LLP today to discuss your specific situation and to determine which option is best for you.