Starting a Business

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.
Guest Writer
min read
Opinions expressed by Entrepreneur contributors are their own.
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

More from Entrepreneur

Are paying too much for business insurance? Do you have critical gaps in your coverage? Trust Entrepreneur to help you find out.
Get Your Quote Now

One-on-one online sessions with our experts can help you start a business, grow your business, build your brand, fundraise and more.
Book Your Session

Whether you are launching or growing a business, we have all the business tools you need to take your business to the next level, in one place.
Enroll Now

Latest on Entrepreneur

My Queue

There are no Videos in your queue.

Click on the Add to next to any video to save to your queue.

There are no Articles in your queue.

Click on the Add to next to any article to save to your queue.

There are no Podcasts in your queue.

Click on the Add to next to any podcast episode to save to your queue.

You're not following any authors.

Click the Follow button on any author page to keep up with the latest content from your favorite authors.

It Started As a Joke and Turned Into a Startup That Raised $1 Million in Funding