Business Name

[Mike Matern]

I'm just getting started investing and have been advertising my self under a business name but do not have it registered/ trademarked/ etc. If I am only wholesaling at this point do I need to have my business name registered or set up as an LLC?? At what point should this be done? When I start buying and rehabing properties myself?

[Wade Sikkink]

I personally think it's a good idea to set up a business entity if you are engaged in any business type activities. It will provide additional protection for your personal assets should something go awry with the business. That being said, you have to set it up correctly and maintain an arms length relationship with the business in order to protect the corporate veil. Co-mingling funds is one example that can get you in trouble and is probably the most frequently violated by people.

As far as trademarking, etc. I wouldn't spend any money on that at this point. You can put the TM mark on your business and receive some basic protection for the name. Also, remember that SM is for a service related business and TM is for a product related business. This is also commonly messed up. If you are selling a product, then TM. If you are selling a service (like rentals) then SM.

Good luck.