When Should a Local Business Move from State to Federal Trademark Registration?

Your small business has a name you're proud of. Maybe you started locally, got your business license from your state, and filed some paperwork with the Secretary of State. Life is good. Then one day, you get an online order from another state. Then another. Suddenly, you're shipping products to customers across the country, or you're serving clients who live far away from your office.

That's when you might start wondering: Do I need to do something different to protect my brand name now?

The short answer is yes. A state trademark registration works fine when you're truly local. But the moment your business starts serving people outside your home state, you need to think about federal trademark protection through the USPTO. This guide walks you through the decision so you can choose what makes sense for your actual business.

What Are the Key Takeaways for State vs Federal Trademark in 60 Seconds?

If you do not want the full deep dive, remember these points:

• A state trademark only protects you inside that one state, and every state runs its own system with its own rules.
• A federal trademark through the USPTO is built around “use in commerce.” This means you sell or serve customers across state lines.
• Upgrade triggers when crossing into federal territory. If you ship products to other states, book services with customers outside your state, run ads that reach beyond your home state, or are planning to expand or franchise.
• The USPTO base application fee is $350 per class for most federal applications.
• Before you fall in love with a name, use the USPTO trademark search tools and see what already exists. It takes minutes and can save you thousands.

Should You Get a State or Federal Trademark?

Think of this as a fork in the road. One path is “truly local.” The other is “we’re going bigger than this zip code.” The answer to this also depends on different things, such as where your customers actually are and where you're growing.

Are You Using the Brand Only Inside One State (With No Expansion Plans)?

If your business is truly local, and is linked to one city or one state, with no shipping, without out-of-state clients, then state trademark registration will be the best for you. It's cheaper, faster, and gets you formal protection in your state.

Are You Selling or Serving Customers Outside Your State (Even Online)?

Here's where things shift. If you're shipping orders to customers in California while you're based in Texas, you're in interstate commerce. If you're taking Zoom calls with clients in three different states, you're serving out-of-state customers. If you run an online shop, your customers could be anywhere. That puts you in federal territory.

The law calls this "use in commerce"—meaning your business crosses state lines. When that happens, federal registration becomes not just smart, but necessary.

What Is the “Upgrade Now” Checklist?

If any of these describe you, it is time to look seriously at a USPTO filing:

• You are regularly shipping orders out of state.
• You do online bookings or services that include customers who live outside your state
• A second location in another state is more than a vague dream.
• You are talking about franchising or licensing your brand.
• Your ads or boosted posts routinely reach people in other states.

If you checked yes to any of these, you should be thinking about federal trademark protection.

What Is the Difference Between State and Federal Trademark Registration?

At a high level, the difference between state and federal trademark registration is simple. It is where you are protected and with whom you file.

What Does a State Trademark Do?

A state trademark is filed with the state trademark office. It is based on a filing with the trademark office of that specific state where you want protection. If you register in North Carolina, you get rights in North Carolina nowhere else.

• Each state has its own forms, fees, and examination process; as of result, state trademark registration is not uniform from place to place.
• State filings can be quick and relatively cheap, but their legal fence stops at the state line.

What Does a Federal Trademark Mean?

A federal trademark application is filed with the USPTO and is commonly based on either use in commerce or intent to use. “Use in commerce” includes selling/transporting goods out of state or providing services to customers who live outside your state.

Does Each State Have Its Own Trademark Registration System?

Yes. There is no single “state trademark office” for the whole country. So, when it comes to registering at the state level, you must file in the specific state where you want protection, and that office runs its own process and rules.

The USPTO provides a directory of state trademark information links so you can find the correct state office and process.

When Should a Local Business Switch From State to Federal Trademark Protection?

This is the heart of the question: when do you move beyond the “local seatbelt” and put on a national airbag?

Are You Crossing the “Interstate Line” in Real Life or Online?

The USPTO explains that a federal filing basis called use in commerce is built around using your mark in commerce that Congress can regulate, usually, interstate or international trade. It explains it in plain terms: using your mark in selling/transporting goods out of state or providing services to customers who live outside your state.

Examples that push you toward federal filing:

• A local candle brand starts shipping to two nearby states
• A contractor takes jobs for out-of-state property owners
• A coaching business sells packages to clients nationwide

Are You Turning Your Brand Into an Asset (Not Just a Name)?

Once a brand becomes something you plan to license, franchise, or package, the legal footing matters more. That’s also when investors and partners tend to ask questions that start with: “Do you own the trademark?”

Are You Seeing Confusion or Copycats?

If customers mix you up with another business in a different state, or a competitor copies your name/logo online, state-only protection may feel too small for the problem. Sometimes the market sends warning shots like:

• You find another business in another state using a similar name or logo.
• Competitors start bidding on your brand name in search ads.
• Customers tag the wrong company.

How Do You Know if a Company Name Is Available Before You File?

The USPTO recommends searching its trademark database. Before investing in a sign, a domain, or a USPTO fee, you want to know if somebody else got there first.

Why Should You Search Before Branding Your Website and Signage?

The USPTO encourages owners to search its trademark database to look for similar marks before filing an application. A quick check helps you spot obvious conflicts, avoid a name that’s already in use, and reduce the risk of wasting time and money on a doomed filing.

What Should You Compare in a Search?

• When you search, do not just look for exact matches. Compare:
• Similar spellings and obvious misspellings.
• Similar sounds (for example, “Quick Kleen” vs “Quick Clean”).
• Related goods and services, not just identical ones.

The USPTO explains that the likelihood of confusion depends on both the marks and the related goods and services, not just exact matches in spelling. This is why a short search session is worth far more than the few minutes it takes.

How Much Does It Cost for a Federal Trademark (and What Fees Surprise People)?

The fees are public, but many owners only hear part of the story.

What Is the Base USPTO Filing Fee Per Class?

Under the current fee schedule, the USPTO charges a $350 base application fee per class for most electronically filed applications under Sections 1 and 44.

So, if your mark covers one class of goods, the basic government filing fee starts at $350. Two classes mean 700 dollars, and so on.

What Other USPTO Fees Can Apply?

The $350 figure is only the starting point. The USPTO’s fee rule adds a few new surcharges:

• A $100 per‑class fee if your application is missing required information.
• A $200 per‑class fee if you use a free‑form text box instead of the official ID Manual descriptions for goods and services.

When you file based on intent to use and later have to prove actual use, then you have to pay a government fee for a Statement of Use or Amendment to Allege Use.

What Are the 4 Types of Trademarks Most Owners Mean?

People usually mean one of these “four types”:

• Trademark (goods) vs service mark (services)
• Word mark (name) vs design mark (logo)

What Are the 7 Types of Trademarks People List Online?

Some lists stretch this further and treat different brand elements as separate “types”. They cover your business name, your logo, your slogan, and a product line name. These lists also cover your packaging design, website layout, and more. All of those can function as trademarks if they identify you as the source of the goods or services.

What It All Means

State trademark filings work as a local starting point. But the moment you have interstate customers, online sales, multi-state marketing plans, or licensing discussions on the horizon, state-only protection no longer cuts it. Run a quick search through the USPTO database. Map your goods and services to the right trademark classes. Build a filing plan that matches your real business footprint. Then move forward with confidence, knowing your brand is protected where it actually operates.

Ready to decide between state and federal trademark registration?

Trademark Engine is here to help you start with a USPTO clearance search today. It takes just a few minutes. Then map your goods and services to the correct classes, and use the USPTO application steps to build a filing plan that actually scales with your business.

FAQ's

Should I get a state or federal trademark?

If you're truly local with zero expansion plans, state registration can work. But if you're selling across state lines or planning to expand, go federal. Federal gives you broader protection and sets you up for growth.

What is the difference between state and federal trademark registration?

State trademarks protect your brand only in that one state. Federal trademarks through the USPTO protect your brand nationwide. Federal registration also gives you the ® symbol, stronger legal backing, and the ability to enforce rights in federal court. (USPTO)

How much does it cost for a federal trademark?

The base filing fee is $350 per trademark class as of 2025. You might face additional fees if there are problems with your application or if you file an intent-to-use application and later prove use.

Do you have to trademark in each state?

No. If you need protection across multiple states, federal registration is way more efficient than filing separately in each state. That's the whole point of going federal.

What is stronger, TM or R?

The ® symbol is stronger because it signals official federal registration. TM is just a claim that you own rights. Only federal registration lets you use ®.