How to reserve an LLC name

What a reservation does

When you reserve a name, the state's filing office records it as held for you. While the reservation lasts, no one else can register an LLC or corporation under a name that isn't distinguishable from it. When you file your articles of organization under that name, the reservation is used up and the name becomes your LLC's.

A reservation doesn't create a company, give trademark rights, or reserve the name in any other state.

When it's worth it

Reserve the name when there's a gap between choosing it and filing:

• you're still lining up partners, an operating agreement or funding;
• you're forming the LLC in another state first and will register in this one later;
• someone else, such as an accountant or a formation service, will file for you;
• you'll announce the name publicly before the company exists.

If you can file the articles of organization today, skip the reservation: filing registers the name immediately, and you pay one fee instead of two.

How to reserve a name

1. Run the name through the LLC naming rules: the ending, restricted words and distinguishability all apply to reservations too.
2. Search the state's official register for the core of the name.
3. File the state's reservation form, online where available, with the fee. Use the exact name, including the LLC ending, that you'll put on your articles.
4. Save the confirmation. It shows the reserved name and the date the reservation ends.

The state pages list each state's reservation fee, length and filing method.

When the reservation runs out

At the end of the period the name is released and anyone can register it. Some states let you renew, sometimes only once; others make you wait before reserving the same name again. Put the end date in your calendar and file your articles of organization before it.

Reserving in several states

Each state keeps its own reservations, so holding a name in one state doesn't hold it anywhere else. If you'll form in one state and register in others, reserve in each state where losing the name would cause problems. Some states also offer a longer "name registration" for companies formed elsewhere, which keeps the name until you register there.

The alternative: file now

For most single-owner LLCs, the simplest path is to check the name on the home page, search the state register, and file the articles of organization the same day. The reservation is a tool for when timing doesn't allow that.