Legal Description of Property

Defined as “a group of words used together in a fixed expression,” a phrase can be short or long. In addition to the ones we use every day, there are plenty of famous trademark examples for slogans we all heard at some point: "I'm Lovin' It" "Just Do It." "Think Different." “Impossible Is Nothing.” "Maybe she's born with it. Maybe it's Maybelline." You probably recognize the companies these expressions belong to, even though only one of their names was mentioned directly. You might even be looking to protect a witty string of words yourself and need to know how to trademark a phrase properly. Luckily, this article will explain all the steps. The Pros of Having a Good Slogan If you want to develop a business, a catchphrase would be a great way to attract customers - provided it’s catchy enough. It can be a word, phrase, slogan, or even a design that sets a specific party and their products apart from others. Trademarking something means you gain legal protection for your brand’s recognizable features and that they can’t be used without your permission. However, bear in mind that trademarking a phrase means following some strict procedures, and the process itself might take a few months. Still, if you do get approved, this can be an excellent long-term investment, as it can help your brand stand out while it grows. A trademark is not the only way to protect your intellectual property, as there are also copyrights or patents. Here’s how they’re different: Patents are mostly reserved for inventions. Copyright takes care of art, music, and writing. Trademarks protect words or phrases. How to Trademark a Slogan or Phrase? Trademark registration can be a bit complicated, but it’s also rewarding, as it helps you make your business recognizable.  The US Patent and Trademark Office (USPTO) manages your trademark application, as well as the entire registration process. To be clear, you don't have to trademark a slogan you came up with to use it for your product, but if somebody else does too, you won't have any legal grounds to oppose that. On the other hand, if you’re using something that’s already been trademarked, the entity that protected it will very much be able to sue you. Trademarks do not have specific time frames like patents or copyrights, either. How much does it cost to trademark a phrase, you ask? The price depends on the option you picked, but the cheapest application costs $250 per class of goods or services. These are the application steps: Check USPTO’s website to see if your phrase is available and make sure there are no existing similar phrases. Submit an online application to get your trademark certified. This step also includes a filing fee which can be paid via USPTO’s Financial Manager, using a credit card, electronic funds transfer, or a USPTO Deposit Account. Memorize your application identification number so that you can check up on your trademark application process later on. Wait for the response. This step might take a while, but once you receive a reply, write back to the USPTO; if you don’t respond within six months, it will close your application. Enjoy your trademark! But don’t forget to maintain it. Now that the phrase is 100% your property, you’ll need to check in with the USPTO to make a statement every five years to confirm that your trademark is still active. Most people would like to know how to trademark a phrase for free, but if you want to get a real, certified trademark, this isn’t really possible. There are Common Law Trademark rights, but they don’t apply throughout the USA and are mostly used by companies focused on local markets. You can also consult with a trademark attorney, who will give you some useful tips and guide you through the procedure if needed. This service adds a fee of $1,000 to $2,000 to your original costs, but it can make the whole process a lot easier for you. Trademark - the Secondary Meaning If a phrase becomes so popular that people associate it more with a specific product than its original meaning, it becomes a trademark in the secondary sense. This is nowhere near as common as official trademarking, and it’s difficult to achieve that status, but making that happen means you have an incredibly well-established brand. For example, the name “Holiday Inn” has attained a second meaning, thanks to widespread use in reference to a specific hotel chain, not a variety of hotel services in general. Registered Trademark Symbol We already familiarized you with how to trademark a phrase. Once you do that, you can use the ® symbol after your slogan, company name, or logo. If you haven’t registered it yet, you can use TM for goods and SM for services, but this indicates you have adopted the trademark under the Common Law, meaning it won’t be just yours everywhere. Celebrities and Their Failed Trademark Applications Celebrities are often trying to find new ways to remain relevant in the public eye, and they sometimes do that by applying for a trademark, even if getting one doesn’t make much sense. There were some bizarre attempts, but, as you can imagine, most of them were denied.  To name a few, Taylor Swift unsuccessfully tried to trademark the names of her three cats (Benjamin Button, Meredith Grey, and Olivia Benson). Kim Kardashian made an even bolder move, trying to trademark the word ‘kimono,’ as that was the name of her clothing line. Last but not least, Donald Trump tried to trademark his catchphrase “You’re fired!” but it did not work, and soon he was the one who was fired.  This list could go on, showing that trademark law should not be taken lightly.

What Is Copyright?Copyright is a legal tool for ensuring that original works, such as writing, photos, or music, belong to the people who created them. You cannot use, copy, modify, or publish copyrighted work without the author’s permission. Copyright is often announced by the phrase “All rights reserved,” meaning that you may face a lawsuit if you violate it.Say you find a movie you want to watch on a torrent site, fire up your VPN, and get ready to download it. If you proceed, you’ll probably be breaking the law, as all movies have a copyright statement to prevent unauthorized distribution.That’s copyright in general, but if you’re, say, starting a new business and want to protect your brand, you need a specific legal tool - a trademark. You’ll probably need some instruction on what elements of your business can be protected through US copyright law, and we’ll have some recommendations for that later on.What Is the Meaning of “All Rights Reserved?”If you copyright text, music, your product name, or anything you created, no one can use your work without your permission. Creators and business owners use this phrase to imply that they reserve the right to pursue legal action under copyright law in case of misuse.Let’s make things simple: If you write a book, it belongs to you, and you are the only one who can distribute it further or allow others to read it or copy it. In other words, all your rights are reserved.“All rights reserved” has the meaning of keeping your ownership and distribution rights protected. The prase is often used along with a copyright notice, which consists of three obligatory elements: The word “copyright”, the abbreviation “Copr.”, or symbol © The year of the first publication of the work The name of the authorNow, we’ll have to disappoint you. Even though this phrase used to be legally required starting from the 1910 Buenos Aires Copyright Convention, it’s not anymore. Namely, failure to include “All rights reserved” or a copyright notice has lost all legal significance between March 1st, 1989 and August 23rd, 2000, thanks to the Berne Convention. Its signatories declared that every right is reserved unless explicitly stated otherwise. Copyright is granted to you by default through the very fact that you created the original content.However, do not hesitate to use the phrase, even though it’s technically unnecessary, as it tells those who wish to abuse your rights they shall be prosecuted. Less dramatically put, it warns possible copycats that publishing, modifying, or duplicating original content is not allowed without your permission.How Do You Copyright Something?Using the “All rights reserved” symbol on your website or artwork is not the only thing you need to do to protect it. Having copyright and protecting it from infringement are worlds apart.To prove that you have intellectual property and discourage others from stepping out of line, you need to do one of the following, or both: Place a copyright notice on your artwork or product. Register it with the US Copyright Office.You don’t have to do either, but it will make disputes much more straightforward. As we said, there’s no need to claim your copyrights. All your rights are reserved from the moment the work is created. However, if you wish to proceed with an infringement lawsuit, showing that your work is registered with the Copyright Office is the most substantial evidence you could bring to court, but again, it’s not mandatory.On the other hand, if you want to trademark your brand to reserve all rights, you need to deal with the US Copyright Office, and we recommend choosing an LLC service to help you along. They offer trademark registration, a seller’s permit, legal help, business licenses, pass-through taxation, etc. Take a look at our list of the best LLC Services to help you decide.Copyright DurationSo, what does “All rights reserved” mean in terms of length? Your ownership and distribution rights are protected, but for how long?As of January 1st, 1978, intellectual property is protected for the duration of the author’s life, plus an additional seventy years. If the work was anonymous, pseudonymous, or made as part of a commission, copyright lasts for 95 years from the moment of creation or 120 years after it was first published, whichever is shorter. There is no need to renew your registration with the US Copyright Office or for your descendants to do so.All Rights Reserved vs. Creative Commons vs. No Rights ReservedSome authors wish to selflessly share their efforts with anyone who might benefit from them. In this case, they include the statement “No rights reserved,” which permits others to use it for charitable, public, or personal purposes.Having copyright, for example, allows authors to charge for the use of their intellectual property. Once they give up these rights, however, anyone can use their work for free.Although you usually need permission to use copyrighted material in your work, there is an exception called Fair Use. Even though all rights are reserved to an author, small portions can be used to critique, teach, or as part of a news report, but not for commercial purposes. The press can also freely copy news and articles, but it has to add a reference to the source.Finally, let’s mention Creative Commons (CC). This organization uses a slightly different phrase, “Some rights reserved,” to illustrate their mission of free access to creative and academic work. It’s a non-profit that helps share knowledge by connecting content creators to people who want to use their work.If you’re still wondering when to use “All rights reserved,” take a look at any book’s copyright page. It contains the copyright notice, edition and publication information, cataloging data, print history, and other legal notices. A single glance will give you insight into the world of intellectual property protection.

Small-business owners often think an LLC is an excellent way to form a business because it represents an elegant way to divide personal assets from their business entity. A Limited Liability Company - or LLC - means that a business owner cannot be personally responsible for their company’s debts. Flexibility with profit and tax distribution is another vital reason business owners choose this business solution.If you’re wondering how your salary works in this case, our guide will show you the options for getting paid, as well as your responsibilities to the IRS.How To Pay Yourself in an LLCThe answer depends on how you choose to structure your business. An LLC can be owned by one person (a single-member LLC) or co-owned (a multi-member LLC). IRS rules consider an LLC to be a sole proprietorship when there’s just one member and a partnership when there are two or more LLC members. You can also choose to structure your LLC as a corporation. In this scenario, you’ll be an employee in your company and get a regular salary.The three different solutions offer different profit distribution and tax requirements.How To Pay Yourself in a Single-Member LLCAn LLC where you are the only member is a single-owner LLC. The good thing is, as the sole proprietor of your business, the only payments you need to think about are your own. On the other hand, you don’t get a salary or any other type of standard compensation. Instead, as a business owner, you can access the funds on your LLC account and transfer the amount you need to your personal account. This type of compensation model is known as “owner draw.”Unlike a fixed salary, the owners’ draw from an LLC account is a flexible method, as there is no predetermined draw limit or strict payment schedule. You can simply write a check or transfer money from your business account to your personal account at any time you want.How To Pay TaxesThe IRS regulates tax payment for all LLCs, including single-member ones. An LLC with just one member is considered a sole proprietorship and a disregarded entity, which means you don’t need a separate tax return for it. Instead, the LLC-payroll owner reports LLC income as part of their personal income, and that’s what gets taxed. You’ll use Schedule C to report your business earnings and losses on an annual level and submit it with your Form 1040.What Does It Mean for You?First off, you’ll need to pay taxes for everything the company earns, regardless of funds drawn. Secondly, since you’re considered the LLC’s sole proprietor, you’ll need to report self-employment taxes (Social Security and Medicare) to the IRS. The main downside of using the owner draw payment method is the extra skills you need to do your taxes.How To Pay Yourself in a Multi-Member LLCA multi-member LLC is a business entity with two or more members, and the IRS will view it as a partnership. You can also choose your LLC to be treated as a corporation by the IRS, in which case, you’ll be an employee and get a salary. We’ll discuss this option later.Much like in a single-member LLC, each owner of a multi-member LLC can draw money from the company account. There’s one capital or a general-ledger account that shows business expenses, earnings, the capital contributed by each member, etc. And if you’re wondering how much do multiple owners of an LLC get paid, it depends on the partners themselves. Together, you must decide how much each of you should be paid and how the payments will be transferred.There’s a document every aspiring proprietor should have when forming an LLC with friends or business partners. It’s called an operating agreement and shows each member’s ownership percentage, rights, and how much of the business earnings they get. The document can also include information on how to pay LLC members, especially when the company doesn’t make much - or any - money. Paying yourself with a partnership LLC can quickly become a bone of contention, so make sure to agree with the other members on stable payments even when your company doesn’t make profits.How Does Paying Taxes as an LLC With Multiple Members Work?If your LLC is classified as a partnership, each partner must pay individual taxes directly to the IRS. You calculate your tax returns based on each member’s ownership percentage. For LLC income-tax purposes, you need to file the IRS Form 1065 to report your business profits and expenses. After that, you and the other LLC members on payroll must show your share of a partnership income on Schedule K-1.It’s also important to mention that the members of an LLC must pay full taxes on their share of the earnings, no matter how much they draw from the joint account for compensation. For example, if your share in an LLC is 50% and you take only a part of that as an owner draw or even nothing at all, you’ll still pay taxes on 50% of the business earnings.LLC Guaranteed Payments vs. Owner DrawWith owner draw, the proprietors can get funds from the LLC’s business account as needed or set up recurring payments. It’s a good solution, especially if you’re the only owner of your business. However, you need to be careful to leave enough money in the business account for your company to operate smoothly.On the other hand, you can use guaranteed payments. As the name suggests, they are a guaranteed amount that each co-owner receives, regardless of how much their business is currently earning. LLC member compensation should be strictly outlined in the operating agreement, which is why it’s so important to pay special attention when creating this document with your partners. Although an LLC looks like an easy business entity to manage, its owners should be familiar with the fact that managing an LLC comes with certain rules. For example, if you decided to set up a guaranteed LLC payment for each member, you need to do that before you officially form your LLC.Run an LLC - Pay Yourself From a Corporate AccountAnother road you can take when you start an LLC is to structure it as a corporation. You and the other owners will be considered employees, and instead of owners draw, you’ll get monthly salaries. Each member must report their earnings from the LLC as part of their personal income to the IRS. In addition, the company itself has to pay taxes. You’ll need to file different tax forms and schedules, depending on whether your LLC is incorporated as a C-Corp or S-Corp.