S1 E26 Why you should form an LLC or corporation for your intellectual property with Wayne Carroll and Ike Devji

S13 E26 Why you should form an LLC or corporation for your intellectual property

Let me tell you a story. Four friends from college decided to start a business together. As they spend long hours together they developed some great ideas and started to implement their plans. They filed a patent application and a trademark. They didn’t form a business or LLC since they were all friends or more than friends. Startup life was not easy and within 2 years there were breakups and people parting ways not on the best terms. One of the friends worked to carry the business forward, but the patent was owned by all four of them, and the trademark was owned by all four of them, and working together was no longer an option.

The way you choose to own your intellectual property can have large consequences. If you do not set ownership properly, you may lose all of the value of your IP.

Forming an LLC or corporation to own IP has many benefits: Core assets stay with the company Separate ownership from inventorship or authorship Risk protection Easier to license the IP or sell the business Required by investors (beyond the 3 Fs) Succession and estate planning Tax benefits Assets for funding and financing Credibility with customers Simplifies bookkeeping

Some steps to take when planning or revising your corporate structure: Determine your long-term plan for the business Determine ways you can monetize your IP Work with a tax professional to find what R&D tax credits or other tax benefits you can receive. Have everyone sign agreements - including the founder to transfer ownership of IP to the business.

Each business is unique and will need individual professional advice for planning ownership, succession, and tax structure.

Don’t miss the next episode about Securing IP Ownership When Working with Partners, Employees, and Contractors. BIO:

Wayne Carroll founded Inspired Idea Solutions Law Firm in 2013, an IP boutique law firm focused on helping small businesses with intellectual property. At Inspired Idea Solutions, we use a proven process for obtaining IP rights that focuses on aligning the business strategy of small business clients with their IP strategy. We help small businesses implement a strategy to ensure they own and leverage their intellectual property. We also have clear expectations with zero hidden fees.

In addition to his legal work, Wayne is an Eagle Scout and actively volunteers with the Boy Scouts of America. He is also a proud father of six children and enjoys playing pickleball. Wayne's extensive experience and expertise in intellectual property law make him a highly respected attorney and a valuable asset to clients seeking protection for their intellectual property rights. Wayne can be reached at 480-741-2440 or [email protected]. You can also connect with Wayne on LinkedIn.

Schedule an appointment with Wayne Carroll for a strategy session on protecting and leveraging your intellectual property.

TAGS: LLC, corporation, intellectual property, patent, trademark, ownership, risk protection, licensing, selling a business, investors, succession planning, estate planning, tax benefits, funding, financing, credibility, bookkeeping, corporate structure, monetize IP, R&D tax credits, agreements.