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Question added to topic Starting a BusinessJuly 16, 2008

I've built a protype for an invention. Should I form an LLC or full corporation and patent it? Or should I seek a large company in the industry to sell the rights to?

The invention is an alarm system built to protect property (land, buildings, etc.) that doesn't have the infrastructure for a conventional alarm system. The system has the same features as a convential home alarm and can also be connected to a digital camera.
Every state and locality has different regulations for corporations and LLCs. You'll definitely need to contact someone in your locality for that information.

As far as selling, you'll need to look at your situation both ways. If you sell to a large company, you can typically expect one big payout with nothing long-term. If you go on your own, you have the advantage of long-term income and profits--with the added incentive of a "sellout" on the back end at some point down the road.

Play both sides--and you'll be in a better position to determine what will work best for you.

All the best.
Brad Sugars

Brad Sugars is the founder and chairman of ActionCOACH. As an entrepreneur, author and business coach, he has owned and operated more than two dozen companies including his main company, ActionCOACH, which has more than 1,000 offices in 34 countries.

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