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?
ByBrad Sugars•
Opinions expressed by Entrepreneur contributors are their own.
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
