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Old 12-07-2010, 03:26 PM
HotRodKush HotRodKush is offline
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Default Doing business nationally. Protection in all states?

Quick question. What is the best way to protect your business interests if you're selling to a nation-wide audience - for example, an internet-based business? Is registering your business in your own state and trademarking your name and logo sufficient protection, or does the business need to be registered in every state to which you sell?

Last edited by HotRodKush : 12-08-2010 at 08:53 AM.
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Old 12-10-2010, 10:31 AM
David Staub David Staub is offline
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Protect from what? If it is liabilities you are worried about, then forming a corporation or limited liability company will give you basically the same protection in all 50 states, though case law on things like piercing the corporate veil do vary somewhat from state to state.

Registering in a state, though possibly necessary if the level of business you conduct in that state meets certain requirements, typically does not affect your basic liability.

If it is protecting your intellectual property, such as trademarks, then different steps are needed. The best protection for a trademark is federal trademark registration. State trademark registration, where available, really does very little for you.

But there are many other steps you need to take. Properly drafted and executed contracts, procedural safeguards, technology license agreements, website terms of use and privacy statements, just to name a few.

David K. Staub is an Illinois tax and business attorney and author of the Limited Liability Company Center.
Forum posts are not legal advice, are for informational and educational purposes only, and are not a substitute for proper consultation with legal counsel.
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Old 12-10-2010, 04:59 PM
HotRodKush HotRodKush is offline
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Thank you very much for the info. I'll look into the steps you laid out and begin my research.
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Old 12-23-2010, 10:36 AM
glinted glinted is offline
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I would not be so concerned, get your business started and worry about the trademarks etc once you get that big.
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