U.S. Trademark Registration Differences Between Individuals and Companies - Do You Know?

Trademark Registration in the United States Key Differences Between Individuals and Companies

In today's globalized business environment, brands have become one of the most important assets for enterprises. As a direct representation of a brand, trademarks play an irreplaceable role in the market. Particularly in a highly regulated and mature commercial environment like the United States, trademark registration and protection are especially critical.

For individuals or businesses planning to enter the U.S. market, understanding the differences between registering a trademark as an individual versus a company is the first step toward building a strong brand identity.

1. Differences in Applicant Identity

From a legal standpoint, both individuals and companies are eligible to apply for a trademark with the United States Patent and Trademark Office USPTO. However, there are significant differences in terms of eligibility, ownership rights, and long-term management.

An individual applicant typically refers to a natural person who can file the application under their own name. In this case, the trademark belongs solely to that individual. This option suits freelancers, small entrepreneurs, or independent operators who haven't yet established a formal company.

On the other hand, corporate applicants include entities such as Limited Liability Companies LLCs and Corporations C-Corps. When a trademark is registered under a company, it becomes the property of the organization rather than any specific individual. This structure facilitates smoother operations when transferring brands, raising capital, or preparing for an IPO.

According to USPTO’s annual report released in June 2025, the number of individual applicants increased by 15% year-over-year, indicating growing awareness among independent creators and small-scale operators about brand protection. However, most established businesses still prefer to register trademarks under their company names for better long-term management and scalability.

2. Ownership and Transferability Differences

Once registered, a trademark's ownership has a direct impact on its future use and transferability.

If a trademark is registered under an individual, it is considered personal property. If the owner wishes to use it within a company, they must typically assign or license it to the business. Otherwise, confusion may arise regarding legal ownership.

Conversely, trademarks registered under a company are automatically classified as company assets, making them easier to manage and license externally. Clear intellectual property ownership also positively influences company valuation during major events such as mergers, acquisitions, or fundraising.

For example, in early 2025, a tech startup named GreenPath faced legal disputes after completing Series A funding because its trademark had initially been registered under the founder’s personal name. The company eventually incurred additional costs and delays due to the need for trademark reassignment. This case serves as a reminder to thoughtfully plan trademark ownership from the very beginning of a business venture.

3. Legal Liability Differences

In the U.S., trademarks are not just identifiers-they carry legal weight. The liability associated with trademark enforcement and infringement cannot be overlooked.

When a trademark is registered in an individual’s name, the person assumes full legal responsibility using their personal assets. However, if the trademark is registered under a company, the corporation is treated as a separate legal entity. As such, debts and liabilities generally fall on company assets, while shareholders are only liable up to the amount they've invested.

This limited liability framework provides greater risk protection-especially valuable in complex international legal environments. For this reason, registering a trademark under a company often offers more advantages for businesses operating across borders.

4. Minor Differences in Application Materials and Process

Although both individuals and companies can apply for a U.S. trademark, there are slight variations in required documentation.

Individual applicants must provide personal details such as full name, address, nationality, and sign a declaration confirming either actual use or a bona fide intent to use the trademark. Corporate applicants must submit similar information but also include the company’s country of incorporation, legal structure e.g., LLC, Corporation, and a signature from an authorized representative.

Regardless of the applicant type, all parties must clearly define the goods or services category and pay the corresponding government fees. In 2025, USPTO revised certain fee structures, offering reduced rates to micro-entities that meet specific criteria-an initiative aimed at supporting small and medium-sized businesses.

5. Choosing the Right Approach It Depends on Your Business Model and Stage

If you're a new freelancer, designer, artisan, or content creator without a formally registered company, registering a trademark as an individual may be a cost-effective and practical option. It allows you to build brand recognition quickly while minimizing upfront expenses.

However, if you already have a company or plan to seek investment and expand internationally, it’s advisable to register the trademark under your company’s name. Doing so enhances professional credibility and lays a solid foundation for future legal and business activities.

This shift is increasingly evident among cross-border e-commerce sellers. According to a mid-2025 report by eMarketer, more Chinese sellers entering the U.S. market now prioritize registering trademarks under company names to boost consumer trust and avoid risks of brand hijacking.

Conclusion

A trademark is not only a symbol of a brand but also a crucial part of a company’s intangible assets. Whether you are an individual entrepreneur or a business executive, understanding the distinctions in trademark registration between individuals and companies is essential before entering the U.S. market.

By making informed decisions early on, you can gain a competitive edge and secure your position in the fast-paced American marketplace.