So, lets pull in a logo or an odd shaped design you have been working on. This works best with compact logos. I’ll demonstrate with this monkey logo that you will notice needs a border.

Select the whole object and Object > Group. Now select the image and click and drag a copy straight below (Shift + Ctrl + Alt on a PC or Cmd + Shift + Alt on a Mac) The shift key helps keep the image in a straight line when dragging. OK, now got to you Color Palette and select a color you would like for your background. If you have a stroke on your image go to Object > Path > Outline Stroke. Your image should look something like this:

OK, make sure the entire image is selected, just click outside the image and drag over it. Now go to your Color Palette and select the color you want for your background (you can always change it later). Pathfinder Palette and select Merge.

Go to Object > Ungroup. With your image still selected you may see random points in your image.

NOTE: these next steps may vary depending on the complexity of the image. With the object still selected Object > Ungroup, then hold down shift and click the background area. You should just see the random points. Click Delete to get the points OUT! Repeat this step, but this time select Release Compound Path and Delete the stray points. Don’t delete areas where you want a compound path! You can fix those by using the divide filter on the pathfinder palette.

Now you should have a clean background of your image that you can use a gradient, pattern, or color combo of your choice. Add the border as discussed in Outline an Image: Part 1. You can just delete the inner image - we just want the border. Gently edge your image up to your original logo/ image holding shift to keep it straight.

Line up the background and the image (takes some practice and you might find an easier way). You may have to select Object > Arrange > Send Backward. You can just group the images together if you wish.

HOORAY! You have created a separate border for your logo that you can change the color or add a gradient. Have fun and play around with the combinations. Hope this helped out in some way or another!