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What consideration value if I am transferring my own copyright to my own LLC?

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Derrick12

Member
I live in Illinois.

I own myself several visual design copyrights that I want to transfer to my own LLC which I am the only member. For the copyright assignment agreement since the assignee pays the assignor a fee of consideration, what value should be used or how should this portion be handled in the agreement since I am basically transferring the copyright from myself to my LLC?
 


quincy

Senior Member
You really should keep all related questions together. This probably would be best added to your other thread.

You can transfer rights with no money exchanged. The requirement is that the transfer is in writing and signed by the copyright holder.

Here from the Copyright Office is a link to copyright transfers:

https://www.copyright.gov/title17/92chap2.html
 

quincy

Senior Member
Doodah’s link is to recording the transfer of rights document with the Copyright Office.

Here is a link to your other thread:
https://forum.freeadvice.com/threads/should-i-register-a-design-copyright-as-myself-or-a-company-and-how-many-images.659749/

Copyrights are a bundle of rights that include the exclusive right of a copyright holder to reproduce (copy) the work, display or perform the work, distribute the work, and prepare adaptations (derivatives) of the work.

The copyright holder has the exclusive right to exercise all of these but the copyright holder can (and often will) transfer some (but not all) of these exclusive rights to another or others.

These exclusive rights can also be retained by the copyright holder, with only licenses to use the copyright-protected work granted to others. The licenses can grant exclusive or non-exclusive rights, can be limited in time and scope, structured in many different ways to fit the needs of the copyright holder.

As recommended in your other thread, you should sit down with an IP attorney in your area to decide what type of transfer agreement (or licensing agreement) will work best for you. You might find that transferring ALL exclusive rights (giving up all rights in the work so that the company becomes the new copyright owner) is not the wisest choice to make.
 
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Derrick12

Member
You really should keep all related questions together. This probably would be best added to your other thread.

You can transfer rights with no money exchanged. The requirement is that the transfer is in writing and signed by the copyright holder.

Here from the Copyright Office is a link to copyright transfers:

https://www.copyright.gov/title17/92chap2.html
Thanks so much Quincy! I did not know I can add another question to my previous thread since I posted it few days ago. Your reply was really helpful and made sense. I just have one more quick question - even though you mentioned that no money needs to be exchanged in my situation, is there any drawbacks to putting $1 as consideration just to make sure that there's no future issues? And then I can pay from my personal checking account to my LLC a $1 check just to confirm it. Let me know what you think about this? Thanks again for the great help!
 

Taxing Matters

Overtaxed Member
I live in Illinois.

I own myself several visual design copyrights that I want to transfer to my own LLC which I am the only member.
Is the LLC treated for tax purposes as a corporation (either C or S corporation)? By default a LLC created or organized in the U.S. that has a single owner is treated as a sole proprietorship (SP). If your LLC is treated a SP then the consideration for the transfer won't result in any tax consequences. But if you elected for the LLC to be a corporation then the consideration will become quite important. How the transfer is done and the consideration provided can either end up being tax free or end up triggering income to you if it is a corporation.
 

quincy

Senior Member
You mentioned that you are the owner and only member of your LLC, correct, Derrick?

Here is a link to Illinois Department of Revenue on taxes for LLCs:
https://www2.illinois.gov/rev/questionsandanswers/Pages/604.aspx

As mentioned before, there can be more to a copyright transfer than just signing away all rights. You really should go over all of the particulars with an attorney in your area.

I would hate for you to make a mistake with the designs you worked hard on creating.
 
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