Legal Question in Business Law in Massachusetts

(1) Does a DIVISION of a company need to be set up as a separate legal entity?

(2) How do I secure the name of a division of my company?

For example: Let's say my company name is WAYCOOL.Inc. And now I want to set up two divisions:

WAYCOOL Photograpy and WAYCOOL Clothing with two separate websites.

Thanks!


Asked on 2/14/10, 5:25 am

3 Answers from Attorneys

Jonas Jacobson Law Offices of Jonas Jacobson

(1) Not usually, though that may depend upon your articles of organization, etc., and there may be business reasons for incorporating your new division.

(2) Your second question appears to be asking an intellectual property question; how you can trademark the name of your business. That can be done by filing with the United States Patent and Trademark Office (http://uspto.gov).

I would recommend you contact an attorney for help, as, if you screw up the filing, you can end up spending a lot of time, and may not get the mark you want, or you may end up over-paying, depending.

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Answered on 2/19/10, 6:52 am

To set up a divison without forming a new company, you need to file an assumed name and should seek at a minimum a state service mark or trademark. If you want national protection, you need to trademark the name.

If you have more questions, please feel free to contact me without obligation.

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Answered on 2/19/10, 9:07 am
Lawrence Graves Coolidge & Graves PLLC

The people who most advocate trademark registration tend to be those who know the least about it. Both expensive and time-consuming, it confers relatively little benefit for many businesses. Don't do it yourself, I agree, but speak with a trademark lawyer before opting to pursue federal registration. Basic reason (and the "dirty little secret" of the game) is that federal trademark law protects "common law" trademark rights with exactly the same remedies as registered marks, so unless nationwide priority is an issue for you the registration is a flat-out waste of $1,500 (the typical cost of a single-class registration).

As to your first question, there is no need to create separate legal entities unless your tax advisor recommends it. A simple "d/b/a" filing with your town clerk gives you the right to use a separate name for a division of your company. You should discuss with a trademark attorney the viability of your intended name before investing in promoting a new brand, as there are many reasons that a name might be unprotectable.

Best wishes,

LDWG

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Answered on 2/19/10, 4:51 pm


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