QUESTION
Is it really necessary to add LLC or INC to a company logo?
Asked on Jun 12th, 2014 on Business Law - Minnesota
More details to this question:
I own a sign shop and lately people are coming in and wanting us to design/redesign their company logo adding their company structure. They say that lawyers are telling them they better do this to protect their personal assets in case of a suit. Its crazy! All these little businesses are plastering LLC across their street signs, vehicles etc. I can understand having it on legal documents and may be business cards but a logo is artwork used commonly for branding purposes not a binding legal document. When I think of McDonald's or Sears or whatever you don't see them with that in their lighted signs out front.This seems to be a relatively new trend. Any thoughts?
1 ANSWER
You may be correct, but why would you ever take the chance? If you operate a business without notifying people that the business is a corporation, or an llc, or some other form of separate legal entity, you could become personally liable for the business's obligations. Thus, for example, if you sign an order for product on letterhead which says "Joe's", instead of "Joe's Inc.", you could be personally liable for that order. What do you have to lose by making sure that your logo contains your corporate name?
Answered on Jun 13th, 2014 at 3:21 PM