Who Owns the Business Name? Common Legal Pitfalls When Starting an LLC 

How a business name, trademark, and domain name all carry distinct legal implications. 

Starting an LLC is an exciting milestone—but many new business owners mistakenly believe that once their LLC is filed, they “own” their business name outright. Unfortunately, that’s not always true. The reality is that forming an LLC is just one piece of a much larger legal puzzle when it comes to protecting your brand. So, what should you keep in mind? 

LLC Formation ≠ Trademark Ownership 

Filing your business name with the Secretary of State gives you the right to use that name within your state—but only for purposes of entity registration. It does not grant trademark rights, nor does it prevent someone in another state (or even in your own state) from using a similar name in commerce. 

To gain nationwide protection, you’ll need to file a trademark application with the U.S. Patent and Trademark Office (USPTO). Without a federal trademark, you may find yourself in a costly dispute down the road—even if you’ve been using the name first locally. 

Domain Names Aren’t Legal Protection, Either 

Another common pitfall: thinking that buying the domain name means you’ve secured the brand. A domain name is just a web address—not a legal shield. Someone with stronger trademark rights could force you to hand over a domain, especially if it overlaps with their protected brand. 

What to Do Right 

When starting a business, especially in competitive industries, it’s worth investing the time (and legal guidance) to: 

  • Search federal and state trademark databases before choosing a name 
  • Register a federal trademark if you plan to scale or market across state lines 
  • Lock down related domain names and social media handles 
  • Use your brand name consistently in commerce and contracts 

Bottom Line 

Launching your business without confirming name rights can leave you exposed. Whether you’re starting small or building for national growth, early legal clarity around your business name can save you from disputes—and costs—later. 

Need help protecting your brand or evaluating your LLC name’s strength? We’re here to guide you through it. 

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