Hello. I am starting a business. I am a sole proprietor. I have an internet business and I will offer my service to people in the United Sta...

Question

Hello. I am starting a business. I am a sole proprietor. I have an internet business and I will offer my service to people in the United States. I registered the business and registered the trade name in the county where I am located. I do not have locations in other states. I am assuming that I do not have to register the business in other states because I don't have an llc or corporation. I am assuming that I don't have to register the trade name in other states because I am engaged in interstate commerce only and the state statutes say that if people are engaged in interstate commerce, they are not doing business with them. Do you agree that I do not have to register the trade name in other states if their statute says that? Also, if I place ads in the classifieds in other states, does that mean that I am doing business with those states? Thank you. Have a great day.

Answer

Depending on what you are providing, conducting any business these days without a liability shield is almost always a bad idea. But assuming you are not terribly exposed, you likely will not need to register in other jurisdiction unless you are considered to be conducting business in those places. But a service business over the web is very likely not going to be considered business activity in other places.

That said, you assumptions about the trade name are not correct. Assuming you are using a distinctive name that is serving as a trademark you need to properly clear that before you start investing in it. Whenever you endeavor into investing in a trademark it is very important that you conduct the proper clearance due diligence upfront and before you start spending any money in support of it or submit an application to the USPTO. In the US, this means searching under both federal (USPTO) as well as common law because trademark rights stem from use in this country NOT registration. This means that acquiring a federal registration does not necessarily mean that you are not infringing on another's intellectual property. See the links below:

http://www.lanternlegal.com/trademark_due_diligence.php

http://www.lanternlegal.com/test_trademark.php

If you would like to discuss further over a free phone consult, feel free to contact me anytime that is convenient.

Our firm is now referred by the American Bar Association (see under the New York section):

http://www.americanbar.org/groups/delivery_legal_services/resources/programs_to_help_those_with_moderate_income.html

Kind regards,

Frank

www.LanternLegal.com

866-871-8655

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DISCLAIMER: this is not intended to be specific legal advice and should not be relied upon as such. No attorney-client relationship is formed on the basis of this posting.