For an independent inventor with only one patent family, what are the pros and cons of creating a corporate entity, such as an LLC or S-Corp, and assigning issued patents to it?

  • You should ask this question on the Legal SE site.
    – Eric S
    Sep 11 '18 at 14:25

From a patent law point of view?


It doesn't matter for prosecution or litigation if you are a legal or natural person.

From a financial point of view?

There might be fee related benefits for natural persons (micro entity), that might not apply for a corporation in some places (US).

Also, there might be ways to optimize taxes on the costs or possible license income, but that's a question for a finance site.


If there are co-inventors, patent law is relevant to the question. Under U.S. patent law co-inventors have equal and separate rights to the invention. Either can make, sell, use, offer for sale, or import it, absent any agreement between them. Also, either could license anyone else with no need to coordinate or share proceeds with the other. Assigning the patent to a company is one way to avoid this problem. Another would be via a contract between or among the inventors.

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