LLC Name Reservation: How to Reserve a Business Name Before You’re Ready to File

Choosing a name for your business is one of the first major steps when forming an LLC. But settling on a name and being ready to file the paperwork are two different things. Maybe you’re still lining up a co-founder agreement, waiting on funding, or working through the formation documents at your own pace. In the meantime, you’d rather not risk someone else grabbing the name you’ve already picked.

This is where LLC name reservation comes in. In most states, you are able to place a temporary hold on a business name with the Secretary of State, giving you time to finish the rest of the LLC formation process without having to worry about someone else scooping up the name you’ve chosen.

What is LLC name reservation?

When you reserve an LLC name, it places a temporary hold on that business name with the state. Once approved, no one else can register that name with your state for a set period while you get ready to file your formation documents.

Reserving a name is a separate step from forming your LLC. Reservation simply holds the name in place. Formation is the process that actually creates your business entity, which happens when you file your Articles of Organization.

That’s an important distinction that a lot of new business owners overlook. Compared to actually forming your LLC, reserving a business name provides a very narrow set of protections and privileges.

Here’s a quick breakdown of what LLC name reservation does and doesn’t do:

• It prevents another business from registering the same name (or, in many states, one that isn’t distinguishable from it) with your state during the reservation window.
• It does not protect your name nationally. A federal trademark registration through the USPTO offers broader protection that extends beyond your state’s borders.
• It does not stop a business in another state from using a similar or identical name.
• It does not reserve your domain name or your social media handles.

Reservation periods, fees, and renewal options vary by state, and not every state offers name reservation for LLCs. Check with your Secretary of State for the current rules.

When does it make sense to reserve an LLC name?

There are several common situations where it can be helpful to reserve your LLC name before forming the company:

• If you’ve settled on a name but need more time to pull together your LLC formation documents.
• If you’re forming the business with co-founders, and coordinating everyone’s paperwork is taking longer than expected.
• If you want to lock in the name while you wait on funding or finalize a partnership agreement.
• If you’re relocating your formation to a new state and your reservation window in the prior state is running out.

However, there are also situations where reservation just adds a step you don’t really need:

• If you’re ready to file your Articles of Organization right now, it’s usually simpler to skip reservation and form the LLC directly.
• If your name is distinctive enough that the odds of someone else grabbing it are low, reservation may not be worth the extra fee.

Name reservation usually costs a small fee and adds an extra step to the process of forming an LLC. It’s a helpful tool when your timeline calls for it, but it’s not necessarily something every founder needs to do.

How to reserve a name for an LLC

The exact requirements to reserve an LLC name differ from one state to the next. However, you can generally expect the following steps:

Step 1: Check name availability

Before you file a reservation, start by confirming that the name you want is actually available and not already in use or reserved by another business. You can do this easily in most states by using the business entity database through the Secretary of State’s website, and this is the first place you should check. Our LLC lookup guide explains how to search by state.

Just keep in mind that a state availability search only tells you whether the name is free to use within that state. It doesn’t check for trademark conflicts, so if you’re planning to build a brand around this name, a separate search through the USPTO trademark database is worth doing before you get attached to it.

Step 2: File the name reservation application

Once you’ve confirmed the name is available, you can then submit a name reservation application to your state’s Secretary of State office. Many states allow you to do this online, while others require the application by mail or in person.

You’ll typically need to provide:

• The desired business name, including your LLC designator (LLC, L.L.C., or similar)
• Your name and address as the applicant
• Any other information your state’s form requires

You’ll also pay a filing fee, which varies by state. Check your state’s current fee schedule before filing, since these amounts change from time to time.

Step 3: Receive confirmation

After your application is approved, the state will issue a name reservation certificate or confirmation notice. Hold onto this document. It’s proof that the name is reserved, and it’s worth keeping in your business records alongside your other formation paperwork.

Your reservation generally runs for whatever period your state allows, starting from the date your state specifies.

Step 4: File the LLC before the reservation expires

A name reservation is temporary by design. To keep the name, you need to follow it with an actual LLC formation filing before the reservation period runs out.

If you need more time, check whether your state allows a renewal and what that process looks like. It’s worth noting here that renewal rules vary, and not every state offers one.

If the reservation lapses and you haven’t formed the LLC yet, the name generally goes back into the pool and becomes available to anyone else who wants it. Reservations typically don’t extend automatically, so be sure to keep track of the expiration date.

How long does an LLC name reservation last?

Reservation periods are set by each state, and they vary quite a bit. Some states offer longer windows than others, and some may or may not allow a renewal. Since these details differ from state to state, you’ll need to confirm the current reservation period directly with your Secretary of State before you rely on a specific timeline.

Whatever window your state offers, make sure it realistically covers the time you need to complete your formation paperwork. A short reservation period isn’t much help if your formation timeline is going to stretch past it.

What to do after reserving a business name

Once your name is reserved, here are the practical next steps you should follow:

• File your Articles of Organization with the state before the reservation expires. This is the step that actually creates your LLC.
• Get an EIN from the IRS. You’ll generally need one to open a business bank account, hire employees, and handle certain tax filings.
• Draft an operating agreement. Even in states where it isn’t legally required, it lays out how your LLC will be run and can help prevent disputes down the road.
• Open a business bank account under the LLC’s name to keep your business and personal finances separate.
• Register any required licenses or permits for your industry and location.
• Consider a trademark application with the USPTO if this name is central to your brand. Remember that neither state name reservation nor LLC formation gives you federal trademark protection.
• Secure your domain name and social media handles. State reservation doesn’t cover these, so it’s worth locking them down separately and early.

Tailor Brands can help with the steps that follow name reservation, including LLC formation, obtaining an EIN, and registered agent service, depending on your plan, so you can move from a reserved name to a formed business without tracking down each piece on your own.

Conclusion

LLC name reservation is a simple, low-cost way to buy yourself time between picking a business name and filing your formation paperwork. It makes sense when you need a few extra weeks or months to get everything else in order, and it’s easy to skip if you’re already prepared to file.

Just remember that the reservation itself is temporary. It’s only a placeholder, not the finish line, and you need to make sure your LLC formation follows before the window closes.

If you’re ready to file today, there’s usually no reason to reserve a name first. You can simply move straight to forming your LLC.

FAQs