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   licensing patent as a business?
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   Author  Topic: licensing patent as a business?  (Read 1268 times)
jjjjhhhh4
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licensing patent as a business?
« on: Apr 4th, 2007, 2:08pm »
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Can I form an LLC (with my partner) based on the business of obtaining a patent and then licensing out the rights to that patent?  In short, we are in the patent application process and hope to license out the idea, but we are curious as to if these actions constitute a viable "business" in which we could form an LLC and gain tax benefits.
 
Will the formation of an LLC make me look more professional and actually help me to license the patent?
 
Any advice would be grealty appreciated!
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jjjjhhhh4
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Re: licensing patent as a business?
« Reply #1 on: Apr 5th, 2007, 1:50pm »
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I'll simplify the question to this...
 
Do you think the formation of an LLC make me look more professional and actually help me to license the patent?
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Bill Richards
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Re: licensing patent as a business?
« Reply #2 on: Apr 5th, 2007, 7:53pm »
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on Apr 4th, 2007, 2:08pm, jjjjhhhh4 wrote:

Can I form an LLC (with my partner) based on the business of obtaining a patent and then licensing out the rights to that patent?
Yes Quote:
In short, we are in the patent application process and hope to license out the idea, but we are curious as to if these actions constitute a viable "business" in which we could form an LLC and gain tax benefits.
Just a little out of my area, but an LLC gives one no tax benefits.  Discuss w/a tax attorney. Quote:
Will the formation of an LLC make me look more professional and actually help me to license the patent?
Maybe, but much more important are many other factors.
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William B. Richards, P.E.
The Richards Law Firm
Patents, Trademarks, and Copyrights
614/939-1488
Bill Richards
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Re: licensing patent as a business?
« Reply #3 on: Apr 5th, 2007, 7:54pm »
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on Apr 5th, 2007, 1:50pm, jjjjhhhh4 wrote:
Do you think the formation of an LLC make me look more professional and actually help me to license the patent?
Most even partly savvy business people recognize an LLC for what it is.  A way to manage risk.
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William B. Richards, P.E.
The Richards Law Firm
Patents, Trademarks, and Copyrights
614/939-1488
Isaac
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Re: licensing patent as a business?
« Reply #4 on: Apr 6th, 2007, 7:57am »
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on Apr 5th, 2007, 7:53pm, Bill Richards wrote:

Yes
Just a little out of my area, but an LLC gives one no tax benefits.  Discuss w/a tax attorney.

 
I'm not a tax attorney either, but I do know that LLCs are taxed identically to partnerships (the default arrangement) but differently from most corporations.   Accordingly there are tax implications to deciding what type of entity to form.  
 
If your partner is a coinventor, there may be advantages to having patent rights assigned to business entity to hold the patent over having the patent ownership jointly shared between two people, provided that there are agreements in place indicating how the business entity will resolve disputes between the owners.
 
Having enough business savvy to form the correct business entity and establish the correct business arrangement may mean that you are more professional and that business savvy migh lead to making a better impression, but simply being formed as an LLC shouldn't impress anyone.
 
« Last Edit: Apr 6th, 2007, 7:57am by Isaac » IP Logged

Isaac
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