Choosing a name is one of the most exciting and crucial steps when starting a new venture. But what if you decide on the perfect name—only to discover it’s been taken before you’ve had a chance to officially register? That’s where reserving a business name comes in.
This process lets you lock in your desired name, giving you some time to handle other startup tasks without worrying about losing the name to someone else.
In this article, we'll walk you through how to reserve a business name, the benefits of doing so, and the steps needed to ensure your name is legally yours.
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What does it mean to reserve a business name?
Reserving a business name means putting a temporary hold on a specific name with the state or local authority where you plan to register your business. By doing this, you ensure no one else can claim the name while you're finalizing the paperwork for your business.
Reserving a business name has two main benefits:
- You gain extra time: If you're not ready to register or start planning your business yet but want to secure a great name, reserving it gives you some breathing room.
- You avoid losing the name: If you're still setting up your business or waiting for paperwork to clear, reserving the name gives you legal protection, ensuring it’s yours when you're ready.
It's worth noting that it might not always be necessary to reserve a name. If you’re prepared to register your business right away, you can skip the reservation process and officially register it, saving time and the reservation fee (which varies by state).
Additionally, some states automatically reserve the name for you from the moment you start the registration process. As the specific rules can vary, it's a good idea to check directly with your state's Secretary of State or Business Division website for name reservation practices.
Types of business names
When it comes to naming your business, it's important to understand the different types of business names and how they relate to the reservation process. Here’s a breakdown of the key categories:
Legal business name
The legal business name is the official name under which your business operates and is registered with the state. This name appears on all legal documents, contracts, and government filings. It must be unique and not infringe on existing trademarks or business names in your state. When you reserve a business name, you're typically reserving this legal name.
Trade name—or “doing business as” (DBA)
A trade name, also known as “doing business as” (DBA), is the name you use for marketing and branding purposes. It’s different from your legal business name and may be more descriptive or appealing to customers.
For example, if your legal business name is “Smith Enterprises, Inc.,” you might use “Smith's Super Service” as your trade name. You may need to register this trade name separately, and it's worth checking if it's available before you start using it.
Domain name
In today’s digital world, securing a domain name that matches or complements your business name is crucial for your online presence. While this isn’t a formal type of business name, it should be an essential part of your branding strategy. Ensure the domain name is available and register it to maintain consistency across your online and offline branding.
Fictitious business name
A fictitious business name is similar to a trade name or DBA. It’s a name that doesn't necessarily reflect the business's legal name but is used for operating and marketing purposes. This name often requires registration with local or state authorities, depending on where you’re doing business.
For example, a company could have “Smith & Rode LLC” as its official name but use “Coastal Home Designs” for branding and marketing purposes. This approach would allow the company to present a more relevant or memorable identity to customers while still retaining its legal entity name.
Registered trademark
If you want to ensure maximum protection for your business name, you can register it as a trademark. This gives you exclusive rights to the name and protects it from being used by others in a similar industry. Trademark registration is a more formal process that involves the U.S. Patent and Trademark Office (USPTO).
How to reserve a business name in 8 steps
Here’s a step-by-step guide to help you navigate the reservation process:
1. Choose a business name
Pick one that aligns with your business goals and complies with naming regulations. How do you come up with a business name? There’s no one-size-fits-all answer to this question—but it should be unique, relevant, and easy to remember. Aim for a name that’s easy to spell and pronounce.
Another strategy is choosing a name that appeals to your target customers and speaks to their needs or desires. A name that reflects their interests or solves a problem they have can be very effective.
2. Conduct a name search
Once you have a name in mind, conduct a name search to ensure it’s available. You can usually do this through your state's business registration website or database. Make sure to check for any potential trademark conflicts or existing businesses with similar names to avoid legal issues.
This search will help you determine if the name is already in use or if there are similar names that could lead to confusion.
3. Check domain availability
In addition to checking for business name availability, verify that the corresponding domain name is available for your business website. Consistency in your business and domain names can help strengthen your brand identity.
4. Prepare required information
This typically includes your chosen business name, your contact information, and sometimes a brief description of your business. Be ready to provide details about your business structure, such as whether it's a sole proprietorship, partnership, or corporation.
5. Reserve the name
Submit your business name reservation request to the appropriate state agency. This is usually done through the Secretary of State’s office or a similar entity in your state. The process may involve filling out a form online or mailing a physical application. You might also be required to pay a reservation fee, which varies by state.
6. Await confirmation
After submitting your reservation request, you’ll need to wait for confirmation from the state agency. This confirmation will typically come in the form of a reservation certificate or an official notice indicating that your name has been reserved. This certificate confirms the name is protected and will not be available to others for the specified reservation period.
7. Proceed with business registration
Once you’ve received confirmation, you can proceed with the formal registration of your business. This involves filing the necessary paperwork to officially register your business name with the state. You’ll also need to complete other steps, such as obtaining licenses and permits.
According to the U.S. Small Business Administration, in most cases the total cost to register a business is less than $300, but the amount can change depending on the state and business structure. Applicants will typically need to provide business name and location, ownership, management structure, or directors, registered agent information, and number and value of shares.
8. Monitor and renew
Some states allow you to reserve a business name for a specific period, after which you may need to renew the reservation. Keep track of the reservation period and ensure you renew it if necessary to maintain your claim to the name.
FAQs
How do I reserve a business name?
Typically, you need to check the availability of the name through your state’s business registry or Secretary of State's website. Once you confirm that the name is available, you can submit a reservation application along with the required fee. This process ensures the name is set aside for your use while you complete the other steps to establish your business.
What is an unofficial business name?
An unofficial business name is any name a business uses that is not officially registered or recognized by government authorities. This could include a working title or a temporary name used before the formal business registration. Official business names must be registered and comply with state regulations.
Can I have any name for my business?
No, you cannot choose just any name for your business. The name must be unique, not misleading, and not already in use by another registered business. It should also comply with state regulations and avoid infringing on trademarks or copyrights. Conduct a thorough search to ensure the name you choose meets all legal requirements.
How much does it cost to register a business name in the U.S.?
The cost to register a business name in the US varies by state and the type of registration required. Generally, the total cost doesn’t surpass $300, according to the U.S. Small Business Administration.