A business name reservation is a short filing with your state’s Secretary of State that holds a specific name for you while you prepare to form a corporation or LLC. Most states follow the Model Business Corporation Act’s 120-day window, fees generally run between $10 and $50, and the application asks for little more than your contact information and the exact name you want. What it does not do is give you trademark rights or authorize you to start doing business under that name.
Check Availability Before You File
Every state runs a searchable database of registered business names through the Secretary of State or an equivalent office. Run your proposed name through it first. The standard you’re checking against, drawn from the Model Business Corporation Act and adopted by most states, is whether your name is “distinguishable upon the records” from every corporation, LLC, reserved name, and registered foreign entity already on file.1LexisNexis. Model Business Corporation Act 3rd Edition – Section 4.01 That’s a stricter test than avoiding an exact match. If “Summit Financial Group LLC” is already registered, most states will reject “Summit Financial Group Inc.” as too similar.
Do not stop at the state database. The SBA recommends checking the federal trademark database at the USPTO, because a state reservation does not shield you from a trademark infringement claim.2U.S. Small Business Administration. Choose Your Business Name A quick search at the USPTO’s Trademark Center will show whether someone already holds federal rights to the name.3United States Patent and Trademark Office. Trademark Center
What the Application Requires
The form itself is minimal. Under the MBCA framework most states follow, you supply two things: the applicant’s name and address, and the exact name to be reserved.4LexisNexis. Model Business Corporation Act 3rd Edition – Section 4.02 Most state forms also ask you to specify the entity type you intend to form, because the name usually has to include a matching designator: “LLC” or “Limited Liability Company” for an LLC, “Inc.” or “Corporation” for a corporation.
The form is typically titled “Application for Reservation of Name” and is available as a PDF or through an interactive portal on the Secretary of State’s website. Precision matters. A misspelling or the wrong entity type can trigger rejection, and filing fees are generally not refunded.
How to Submit and How Fast It Clears
Most states now offer online filing through a business services portal. You enter the information, review a confirmation screen, and pay electronically. The system checks availability automatically, so you often know within minutes whether your reservation went through.
Paper filings by mail are still accepted almost everywhere, and many offices allow walk-in filings. Mail takes longer, and the risk with a competitive name is that someone else reserves it while your envelope is in transit. Online is the safer route when timing matters. Either way, keep the confirmation or tracking number as proof the name is held in your interest.
Reserving a Name in Another State
If your business is already incorporated in one state and you plan to expand into another, you can reserve a name in the new state before formally qualifying as a foreign entity there. Your home-state name may already be taken in the new jurisdiction, in which case you will need an alternate or fictitious name. Reserving it early prevents another filer from claiming it while you prepare your qualification paperwork.
How Long the Reservation Lasts
The MBCA sets the standard at 120 days, and most states follow that.4LexisNexis. Model Business Corporation Act 3rd Edition – Section 4.02 Some use shorter windows of 30 or 60 days. The clock starts when the filing office accepts your application, not when you submit it. During the reservation period, no other entity can register or reserve the same name in that state.
A reservation does not authorize you to conduct business. It only blocks others from taking the name. You cannot sign contracts, open bank accounts, or transact with customers under a reserved name as though you had formed an entity. You still have to file your articles of incorporation or organization before the reservation expires to actually use the name. If the reservation lapses without formation, the name returns to the public pool immediately and anyone can claim it.
Renewal and Transfer
The MBCA describes the 120-day reservation as “nonrenewable,” and states that follow that language technically do not allow extensions.4LexisNexis. Model Business Corporation Act 3rd Edition – Section 4.02 In practice, many states let you file a fresh reservation application after the first expires, effectively re-reserving the same name if no one else has claimed it. Some states impose a gap between consecutive reservations to prevent indefinite hoarding.
Transfers are generally allowed. Under the MBCA, the holder of a reserved name can transfer it by filing a signed notice with the Secretary of State that includes the new holder’s name and address.4LexisNexis. Model Business Corporation Act 3rd Edition – Section 4.02 The new holder picks up the remainder of the original period, not a fresh 120 days. States that allow transfers usually charge a small filing fee. This helps when co-founders change plans or when an attorney reserves a name on behalf of a client who will form the entity.
Fees and Expedited Processing
Standard reservation fees across most states fall between $10 and $50. Some states add a small technology or convenience fee for online filings, usually a few dollars.
Most states also offer expedited processing for an added charge. Same-day and 24-hour options are common. At the low end, expect roughly $25 extra. At the high end, same-day service can add several hundred dollars on top of the base fee. If you are about to sign a lease or launch a campaign tied to a specific name, paying for speed can be worth it.
Assume all fees are nonrefundable. If the name turns out to be unavailable, or the application is rejected for an error, the filing fee is gone. The same goes for expedited surcharges. Check the application carefully before submitting.
Words That Can Get an Application Rejected
Certain words trigger extra requirements or outright rejection. Common restricted categories include:
- Financial terms such as “bank,” “banking,” “trust,” “insurance,” “surety,” and “guaranty” typically require written approval from the relevant state banking or insurance regulator.
- Government-implying terms such as “federal,” “United States,” “state,” “city,” or “municipal” are restricted because they suggest an affiliation that does not exist.
- Professional designations such as “attorney,” “engineer,” “CPA,” or “architect” generally require proof that the business holds the appropriate license.
The exact list varies by state, but the logic is consistent: if a word could mislead the public about the nature, authority, or licensing of the business, it will face scrutiny. If your business genuinely operates in a regulated space, be ready to submit supplemental documentation with the reservation application.
A Reservation Is Not a Trademark
This is the largest misconception in business name planning. Reserving or registering a name with the Secretary of State does not create trademark rights. The National Association of Secretaries of State has said so directly: a business name registration does not mean the same name is available as a trademark, and it does not eliminate the risk of an objection from someone who holds trademark rights to it.5National Association of Secretaries of State. Business Names and Trademarks
The two systems run independently. A state reservation prevents other entities from registering the same name in that state’s corporate database. A trademark protects a brand name, logo, or slogan in connection with specific goods or services, and a federally registered trademark can be enforced nationally through the USPTO.2U.S. Small Business Administration. Choose Your Business Name Someone in another state could hold a federal trademark on the exact name you have reserved, and using it commercially could expose you to an infringement claim regardless of your state reservation. If brand protection matters, treat the reservation as step one and a federal trademark application as the follow-up.
Name Reservation vs. DBA
A reservation and a DBA serve different purposes. A reservation holds a name for an entity that does not yet exist. A DBA, also called a fictitious or assumed name, lets an existing business operate under a name different from its legal registered name. If your LLC is legally “Springfield Electronic Accessories LLC” but you want customers to know you as “TechBuddy,” you would register “TechBuddy” as a DBA.2U.S. Small Business Administration. Choose Your Business Name
The protections differ. An entity name registration, which the reservation leads to, generally prevents others in the state from forming a business under the same name. A DBA registration typically does not provide that exclusivity, and multiple businesses in the same state can often register and operate under the same DBA. DBA requirements also vary: some states register them at the county level, others at the state level, and the rules depend on business structure. A sole proprietor using any name other than their own legal name almost always needs a DBA. An LLC or corporation operating under its registered legal name typically does not.