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Name Reservation Definition

Name reservation is the act of securing and temporarily holding a specific business name with a government agency to prevent others from using it while preparing to formally register a company.

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Last Updated: December 17, 2025

What is a name reservation? 

name reservation defined

A business name reservation means that an entrepreneur’s desired name is saved for their exclusive use for a defined period. Some states’ name reservations are good for 120 days, but some reservations may be as short as 30 days. Many, but not all, states allow renewals.

Some states require new businesses to submit a name reservation and include the certificate with their registration. For instance, Alabama requires LLCs to reserve their names, and Louisiana requires name reservation for corporations. In other states, name reservation is optional, enabling entrepreneurs to protect their favorite business names before submitting their formation documents if they desire.

Name Reservation Benefits

A name reservation benefits soon-to-be business owners because the reservation helps prevent other entrepreneurs from starting a business with the same name. It buys the entrepreneur time to prepare their Articles of Incorporation or Articles of Organization.

Many states will check their own databases to ensure that a name is unique before they’ll approve a registration. In this way, a name reservation can help an entrepreneur avoid spending time and money preparing a business with a name that isn’t available (a free LLC name search can be helpful, too).

Name Reservation Considerations

There are some disadvantages to name reservation. In many cases, name reservation isn’t necessary; an entrepreneur can research if their name is available on their own. Plus, filing the reservation and paying the accompanying fee would waste money if the entrepreneur is already prepared to file their formation documents.

How do name reservations differ from registrations?

“Reserving” and “registering” are separate activities. Reserving a business name is a way for an entrepreneur to protect their name until they’re ready to register. Reservation is temporary; another business may register the name if the business lets the reservation term expire without officially registering the company.

In contrast, name registration requires an entrepreneur to file their Articles of Incorporation or Articles of Organization (or the state’s similarly named documents). Filing these documents officially forms the business and registers the name with the state. Business registration only requires a name reservation in certain circumstances (for LLCs in Alabama and for corporations in Louisiana).

Name Reservation Examples

For example, consider that an entrepreneur named Lola wants to do business in California. She chooses the name “Surf Services” and wants to form a limited liability company (LLC). 

Lola’s first step will be to complete a California business search to ensure that the name “Surf Services LLC” is available. The search returns no exact matches, meaning her name is unique and available. 

At this time, Lola may file a name reservation to protect her name for 60 days, or she can proceed with submitting her Articles of Organization. She can search the Secretary of State’s website to find the requirements. 

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ZenBusiness Can Help

ZenBusiness helps entrepreneurs of all kinds start new businesses. Whether a new business owner is searching for the definition of a business name reservation or just needs a registered agent, ZenBusiness can help. They can also provide a simple business name checker to search the state’s database. ZenBusiness can also help entrepreneurs start a brand-new LLC as soon as they’re ready to claim their perfect business name.

Disclaimer: The content on this page is for information purposes only and does not constitute legal, tax, or accounting advice. For specific questions about any of these topics, seek the counsel of a licensed professional.

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Written by ZenBusiness Editorial Team

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