How to Reserve a Company Name in USA: Step-by-Step Guide for Entrepreneurs
Introduction
Reserving a company name in the USA is an important first step for any business owner planning to register a new company. It helps ensure that your chosen name is unique and legally available for use. This guide explains how to reserve a company name in the USA in a clear and simple way, helping you avoid common challenges.
Summary
Reserving a company name in the USA secures your chosen business name before official registration.
The process varies by state but generally includes a name search, application, fee payment, and confirmation.
Reservation periods typically last between 60 to 120 days, with some states allowing extensions.
Reserving a name helps avoid conflicts, protects your brand, and simplifies registration.
Fees and rules differ across states, so checking the Secretary of State website is essential.
Not reserving a name risks losing it to others, causing branding delays and legal issues.
What is Company Name Reservation in the USA?
Company name reservation means securing your preferred business name with the state government before formally registering your company. This process holds the name exclusively for your business for a limited period. It prevents others from using the same or a confusingly similar name.
Reserving a company name is especially useful if you are not ready to file your company registration immediately but want to ensure the name remains available.
Why Should You Reserve a Company Name?
Avoid Name Conflicts: Reserving protects your name from being taken by someone else during your preparation phase.
Ensures Brand Identity: It helps secure your brand name early on for marketing and branding purposes.
Smooth Company Registration: Simplifies and speeds up the registration process once you are ready.
Legal Protection: Prevents legal disputes over your company name in the future.
How to Reserve a Company Name in USA: Step-by-Step Process
Check Name Availability: Visit the Secretary of State website for the specific state. Use their online name search tool. Check if the name meets state naming guidelines.
Complete the Name Reservation Application: Fill out the Name Reservation Application form provided by the state with your chosen name, contact details, and optional business type.
Submit the Application and Pay Fees: Submit the form online, by mail, or in person. Fees usually range from $10 to $50.
Receive Confirmation of Reservation: The state issues a certificate or confirmation letter holding your name for 60–120 days, depending on state rules.
Use the Reserved Name to Register Your Business: Use the reserved name when you file your company formation documents.
Types of Company Name Reservations in USA
Standard Name Reservation: Hold your business name for a short period (60–120 days).
Extended Name Reservation: Some states allow an extension for additional time if needed.
Trade Name or DBA Reservation: Reserve a fictitious or “doing business as” name.
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Benefits of Reserving a Company Name
Exclusive Right to Use Name
Time to Prepare Registration
Build Brand Awareness
Avoid Legal Issues
Common Challenges in Reserving a Company Name
Name Rejection: If the name is too generic or similar to existing businesses, the state may reject the reservation.
Limited Reservation Period: If you miss the deadline to register the company, the reservation expires.
State-Specific Rules: Each state has its own rules for what names are acceptable.
Reservation Fees: Fees vary and are non-refundable even if the name is later rejected.
Fees and Validity of Name Reservation
State
Reservation Fee
Validity Period
Extension Allowed
California
$10
60 days
Yes (60 days)
Texas
$40
120 days
No
New York
$20
60 days
Yes (60 days)
Florida
$35
120 days
Yes (120 days)
Note:Please check the official Secretary of State website for the exact and updated fee and validity details.
Real-Life Example: Reserving a Name in California
A startup founder wants to register an LLC named “GreenTech Innovations.” Before submitting LLC formation papers, they check the California Secretary of State’s website. The name is available. They file the online Name Reservation Application and pay $10. The name is reserved for 60 days, allowing the founder to finalize documents and finances without fear of losing the name.
What Happens If You Don’t Reserve a Company Name?
The name could be taken by another business at any time.
You may have to change your business name after registration.
Branding and marketing efforts might get delayed.
Increased risk of legal disputes over name infringement.
Conclusion
Reserving a company name in the USA is a smart step to secure your business identity and avoid potential conflicts. It ensures your desired name is held exclusively for your business for a fixed time. Follow your state’s process carefully, pay the required fees, and use the reserved name when registering your company. This simple step lays a strong foundation for your new business.
Ebizfiling.com is a leading online platform offering end-to-end business compliance solutions for startups, SMEs, and global companies. With a presence across India and international markets including the USA, UK, and Singapore, the company specializes in company/LLP incorporation, ITR and GST filings, legal advisory, and foreign subsidiary formation. Backed by experienced professionals including CAs, CSs, and legal experts, Ebizfiling delivers accurate, timely, and regulation-compliant services trusted by thousands of businesses. The platform aims to simplify complex compliance processes through technology, personalized support, and a deep understanding of Indian and global regulatory frameworks.
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