How to Reserve an LLC Name

You’ve picked the perfect name for your LLC, but you’re not ready to file the formation paperwork yet. Maybe you’re still finalizing your business plan, waiting for a co-founder to come on board, or just need time to get your finances in order.

Here’s the problem: someone else could snag your name while you’re getting ready. Most states let you reserve an LLC name for a small fee to prevent exactly this scenario.

This guide walks you through the name reservation process step by step. After reading this (takes about 8 minutes), you’ll know exactly how to protect your chosen name and what it costs in your state.

What You Need to Know First

LLC name reservation is basically putting a temporary hold on your business name with the state. Think of it like reserving a table at a restaurant — you’re claiming that spot for a specific period.

When you reserve a name, the state won’t let anyone else use it for their LLC during the reservation period. This typically lasts 60-120 days depending on your state, and some states let you extend or renew the reservation.

This is perfect for you if:

You’ve found an available name but need 30-90 days to complete formation
You’re launching a seasonal business and want to file closer to your start date
You’re waiting on trademark clearance or domain availability
You need time to gather required documents or signatures from business partners

Common myth: You must reserve a name before forming an LLC. Not true. Most people skip name reservation and file their articles of organization (the document that officially creates your LLC) immediately. You only need reservation if there’s a gap between picking your name and filing.

Skip name reservation if: You’re ready to form your LLC within the next week or two. Just file your formation paperwork directly — it accomplishes the same thing and actually creates your business entity.

How to Do It — Step by Step

Before you start, have these ready:

Your proposed LLC name (exactly as you want it spelled)
A backup name option (in case your first choice gets taken)
Payment method for state fees ($10-$50 in most states)

Step 1: Check name availability (5 minutes)

Search your state’s business entity database to confirm your name is available. Every state maintains a searchable database on their Secretary of State website. Look for exact matches and very similar names.

Your name must include “LLC,” “Limited Liability Company,” or an approved abbreviation. Some states also require the name to be “distinguishable” from existing businesses, not just identical.

Step 2: Download the reservation form (2 minutes)

Visit your state’s Secretary of State website and locate the name reservation form. It might be called “Application for Reservation of LLC Name” or similar. Some states offer online filing, while others require paper forms.

Step 3: Complete the application (3 minutes)

Fill out the form with:

Your proposed LLC name
The name and address of the person requesting reservation (this can be you personally)
How long you want to reserve the name (if your state offers options)

Most forms are straightforward — just one page with basic information.

Step 4: Submit and pay (same day)

Mail the completed form with payment, or file online if available. Online filing typically processes within 1-2 business days. Paper applications take 1-2 weeks in most states.

Step 5: Receive confirmation (1-14 days)

The state will send you a certificate or letter confirming your name reservation. Keep this document — you might need it when filing your LLC formation paperwork.

What happens next: You now have exclusive rights to use that LLC name in your state for the reservation period. During this time, prepare your Articles of Organization and other formation documents.

What It Costs

State filing fees: $10-$50 in most states. A few examples:

California: $10
New York: $20
Delaware: $75
Texas: $40

Wyoming and Nevada are among the cheapest at $20. New Jersey runs higher at $50.

Formation service fees: Most formation companies, including BusinessFormations.com, charge $50-$150 to handle name reservation filing on your behalf. This includes preparing the paperwork, submitting to the state, and tracking the approval.

Hidden costs to consider:

Expedited processing fees (if available): $20-$100 extra
Extension fees if you need more time: usually the same as the original reservation fee
Certified copies of the reservation certificate: $10-$25

Cost comparison:

DIY approach: $10-$50 state fee only, but you handle all paperwork and follow-up
Using a service: $60-$200 total, includes state fee plus service fee for handling everything
Attorney filing: $200-$500, includes legal review of name compliance

Bottom line: Most people spend $50-$150 total to reserve an LLC name when using a formation service. DIY only makes sense if you’re comfortable navigating state websites and tracking filing deadlines.

Mistakes That Cost People Money

Mistake 1: Reserving a name that violates state rules

Many states prohibit words like “bank,” “insurance,” or “university” without special licensing. Others ban names too similar to existing businesses. Research your state’s naming requirements before filing.

Fix: Check prohibited word lists and search existing business names thoroughly. When in doubt, call your state’s filing office to ask about specific name issues.

Mistake 2: Letting the reservation expire

Name reservations have strict deadlines — usually 60-120 days. Miss the deadline and anyone can claim your name, including competitors who might be watching.

Fix: Mark your calendar with the expiration date immediately after receiving confirmation. Set a reminder for 2 weeks before expiration to either file your LLC or extend the reservation.

Mistake 3: Not checking federal trademarks

State name availability doesn’t mean you won’t face trademark issues later. Someone could have federal trademark rights to your name even if it’s available at the state level.

Fix: Search the USPTO trademark database before reserving any business name. Consider a basic trademark search through an attorney if you’re planning significant marketing investment.

Mistake 4: Filing in the wrong state

You might live in California but want to form your LLC in Delaware or Wyoming for tax or privacy benefits. Make sure you’re reserving the name in the state where you plan to actually form the business.

Fix: Decide on your formation state first, then reserve the name there. Remember, you’ll likely need to register as a foreign LLC in your home state if you form elsewhere.

Mistake 5: Assuming reservation guarantees approval

Name reservation doesn’t guarantee your LLC formation will be approved. The state might accept your name reservation but later reject your Articles of Organization for other reasons.

Fix: Use the reservation period to prepare all formation documents carefully. Review your state’s LLC How to to avoid approval issues.

Mistake 6: Not securing the domain name

Your LLC name might be available, but the matching domain could be taken or expensive to buy later.

Fix: Check domain availability before reserving your LLC name. Consider registering the domain immediately — it’s much cheaper than changing your business name later.

For International Founders

Non-U.S. citizens can absolutely reserve LLC names and form LLCs in any U.S. state — no visa, residency, or citizenship required. The name reservation process works exactly the same for international founders.

Best states for international founders: Wyoming offers the best privacy protection and low fees ($20 name reservation). Delaware provides business-friendly courts and investor recognition. Both have no state income tax for non-resident members.

You’ll need a registered agent: Every LLC must have a registered agent with a physical U.S. address in the formation state. BusinessFormations.com provides registered agent service in all 50 states, which satisfies this requirement completely.

EIN complications: Getting a tax ID number (EIN) takes longer for non-U.S. residents. You’ll likely need to file Form SS-4 by fax instead of applying online, which takes 4-8 weeks versus instant online approval for U.S. residents.

Banking challenges: Opening a U.S. bank account remains the biggest hurdle for international LLC owners. Consider digital-first banks like Mercury, Relay, or Wise Business, which often have more flexible requirements for foreign-owned businesses.

Tax obligations: Foreign-owned single-member LLCs must file Form 5472 annually, even with zero income. The penalty for not filing starts at $25,000, so this isn’t optional. Work with a CPA who specializes in international tax to stay compliant.

FAQ

How long does name reservation last?
Most states provide 60-120 days of protection. California gives you 60 days, while Delaware provides 120 days. Check your specific state’s rules, as some offer extensions or renewals.

Can I reserve multiple names?
Yes, but you need separate applications and fees for each name. Some entrepreneurs reserve 2-3 variations of their preferred name to maintain flexibility.

What if someone is already using my name in another state?
LLC names are registered at the state level, so the same name can exist in multiple states. However, check for federal trademarks and consider whether this could create customer confusion.

Can I change the name after reservation?
No, name reservations are specific to the exact name you submitted. If you want a different name, you need a new reservation application and fee.

Do I need to reserve a name if I’m forming immediately?
Not usually. If you’re filing your Articles of Organization within a week or two, skip the reservation and file formation paperwork directly. The formation process accomplishes the same name protection.

What happens if I don’t form the LLC during the reservation period?
The reservation expires and anyone can use that name. You’d need to file a new reservation request (and pay again) if you still want to protect it.

Can I operate my business during the name reservation period?
No, name reservation only holds the name — it doesn’t create a legal business entity. You can’t open bank accounts, get an EIN, or legally operate until you file the actual LLC formation paperwork.

Is the reservation fee refundable if I change my mind?
Generally no. State filing fees are typically non-refundable once processed, whether you ultimately form the LLC or not.

Conclusion

Name reservation is a simple insurance policy for your LLC name when you need time between choosing a name and filing formation paperwork. Most people can skip it and file directly, but it’s worth the $50-$150 cost if you need 30+ days to prepare.

Ready to reserve your LLC name or move forward with formation? BusinessFormations.com walks you through entity selection, handles state filing, and helps with EIN registration and ongoing compliance — all in one place. [Get started here](https://www.businessformations.com/get-started/) and protect your business name today.