Bozeman Startup Attorneys & Lawyers

Key Takeaways

• LLCs and C Corporations differ significantly in tax treatment, ownership structure, and growth potential.
• C Corps may be better for startups seeking investment due to ease of issuing stock and attracting VCs.
• LLCs are easier to manage and more flexible in profit distribution and structure.
• Tax implications vary: LLCs offer pass-through taxation, while C Corps may face double taxation but benefit from reinvestment strategies.
• International business owners may prefer C Corps for credibility and ease of foreign ownership.

LLC Versus C Corp: What Is It?

An LLC is a business entity that is legally separate from its owners, who are known as "members." An LLC can have one member or many members.

A C Corporation refers to any corporation taxed separately from its owners. Unlike S Corporations, taxing of C Corporations occurs twice, once on the earnings and again on the salaries of the owners.

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Key Takeaways

• Freedom to operate (FTO) ensures a product or process can be commercialized without infringing others' IP rights.
• An FTO analysis includes searching for active patents, expired IP rights, trademarks, and other legal limitations across relevant jurisdictions.
• FTO evaluations can mitigate legal and financial risks, especially in highly litigious or competitive industries.
• Legal opinions based on FTO searches can offer valuable protection if litigation occurs.
• Companies may still achieve FTO through licensing, cross-licensing, invalidity challenges, or product design modifications.
• Timing matters — early FTO analysis is recommended in high-risk markets or before major investments.
• Patent landscaping and ongoing IP monitoring support longer-term FTO.

What Is Freedom to Operate?

Freedom to operate, also known as FTO or right to use, means you have the

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Key Takeaways

• Trade dress registration protects a product’s overall image, including design, shape, packaging, and even store layouts.
• It ensures exclusive rights to distinctive, nonfunctional design elements under the Lanham Act.
• Functional features cannot qualify for trade dress protection—only elements that serve a source-identifying role.
• Registration enhances enforceability, allowing owners to pursue federal infringement claims and secure nationwide protection.
• The application must demonstrate distinctiveness or secondary meaning, proving that consumers associate the design with a single source.
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