Registering a business name is important for any company. It establishes credibility and gives your business the proper legal foundation to work on. Since we’ve already covered how you can go about registering your business name in the previous blog, the focus here is the costs associated with the process.
Depending on the type of registration you seek –state or federal – the cost of a trademark will vary. However, considering the benefits that it brings along, it’s a worthy investment.
Many businesses opt to hire attorneys because they are well equipped with the legal knowledge and process formalities to make a successful application. Furthermore, they can help your business avoid any legal liabilities in the future.
While recommended, it is not a must. If you are getting your business name through a legitimate company that knows its work, you can skip this part. If not, you will have to pay an additional fee to the hired attorney.
Federal Registration Fee
Federal Registration offers more benefits than state registrations, like presumptions of validity, incontestability, advanced applications – and perhaps the most important – recognition and protection of the trademark throughout the country.You are entitled to this benefit and others once you register with the relevant patent and trademark body in your country.
The cost is higher since the benefits are greater. For instance, in the U.S. and South Africa, these costs start from $275 and R310 respectively, and vary with the type of filling.
State Registration Fee
Depending on the scale of your business, you can opt for a state trademark registration. It is inexpensive and applications are very simple, such that it can be made without an attorney’s assistance. Even if you do decide to use an attorney, the fee is typically lower. Just to get a rough idea about the costs, as compared to the $275 in the case of US federal registration, the fee for state registration ranges from $50 to $100. The process is less stringent and faster compared to federal registration. Registering in one particular state or region might bring more benefits than registering in another state. The biggest draw back of state trademark registration, however, is that it does not offer cross-state/province protection.
Federal Registration is more expensive, but brings greater benefits. For companies that intend to do business nationwide or internationally, a federal trademark should be the first choice. Whereas generic businesses limited to operating in a particular state,or those for which trademark infringement does not pose a major threat, can opt for state level trademark.
In either case, it’s not the cost but other factors like the scale of operations, additional benefits and protections that determine which option is better.
Depending on your country or state, these costs may vary. But the gist of the argument is that country wide registration tends to be more expensive.
If you have any questions regarding registered and unregistered business names, or if you need company name consulting services, you can contact us. While you are at it, feel free to explore our services and check out our list of ready-made company names available for sale.