Reserving Your Delaware LLC Name

A Comprehensive Guide on how to reserve Your Delaware LLC Name.

Updated on
Jan 24, 2024
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Do You Need to Reserve a Business Name in Delaware?

First things first, you're not legally obligated to reserve a business name before forming your LLC in Delaware. Unlike some states where reserving a name is the first step, Delaware allows you to proceed directly to filing your Certificate of Formation.

So, the question becomes: should you reserve your LLC name?

While reserving your LLC name is an option, it does come with a $75 fee. In most cases, it's more cost-effective to forgo this fee and simply proceed with forming your LLC. This automatically secures your chosen name.

However, there are situations where reserving a business name can be beneficial. If you're not yet ready to officially start your business and want to ensure that your chosen name is reserved exclusively for you, filing a name reservation application can be a prudent move. It prevents competitors from grabbing your name while you're preparing for launch.

If your LLC name is unique, involves unusual spellings or characters, or contains family names, reserving the name in advance might not be necessary. Additionally, if you plan to launch your business shortly after deciding on a name, paying the extra state fee for reservation could be an unnecessary expense.

How to Reserve a Business Name in Delaware

If you've decided to reserve your LLC name in Delaware, follow these steps:

  1. Check Name Availability: Before submitting your name reservation application, ensure that your desired name is available. You can do this by performing a Delaware LLC name search through the Department of State Entity Search. Check for any existing businesses using the same name and verify that your name complies with Delaware's business entity naming rules.
  2. Submit the Reservation: The quickest and easiest way to reserve your LLC name is through the Department of State's Online Name Reservation Site. Select your entity type (LLC), enter your desired name, and follow the instructions provided.
  3. Alternatively, you can opt for postal mail. Complete the "Application for Reservation" and include a "Filing Cover Memo." Mail both forms, along with a $75 payment (check made out to "Delaware Secretary of State"), to the following address:
  4. Delaware Division of Corporations401 Federal Street – Suite 4Dover, DE 19901
  5. You can also fax the forms to (302) 739-3812.
  6. Payment: The reservation fee is $75. If you choose the online reservation option, payment can be made via credit or debit card. If you opt for the paper application, pay by check.

Duration of a Delaware Business Name Reservation

A name reservation in Delaware lasts for 120 days. During this time, you have exclusive rights to that name within the state. If you're not ready to officially form your LLC by the end of this period but still want to keep the name reserved, you can renew the reservation. Each renewal requires filing an "Application for Re-Reservation of an LLC Name" and paying an additional $75 fee. You can renew as many times as needed, but the fees can accumulate, so be mindful of reserving a name too early.

If you decide to transfer your name reservation to someone else or cancel it, there are specific forms for those actions, each incurring an additional $75 fee.

Choosing the Best Route and Saving Time

Your LLC's name is a crucial aspect of your business, and reserving it can be a wise move, especially if you're not ready to launch yet. However, if your business is prepared for takeoff, consider using our comprehensive guide to form an LLC in Delaware. By doing so, you can save time and money by simultaneously securing your name and forming your LLC without the need for a separate name reservation application.

Save Time with Professional LLC Services

Managing all the paperwork and compliance requirements for your Delaware LLC can be overwhelming. Delegate these tasks to professionals, allowing you to focus on your business. With Stellar we can assist you in these compliance tasks.

Disclaimer: The content on this page is for informational purposes only and does not constitute legal, tax, or accounting advice. Seek the counsel of a licensed professional for specific questions related to these topics.

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Frequently Asked Questions

Have other questions? Contact us now

Is reserving my business name necessary before forming my Delaware LLC?
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No, reserving a business name in Delaware is entirely optional, unlike some states where it's a mandatory first step.

Are there specific words restricted from usage in LLC names in Delaware?
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Delaware imposes minimal restrictions on words that can be used in LLC names. Avoid words implying association with the banking industry, lewd, vulgar, or racist terms, and words referring to different business entity types, such as "corporation" or "partnership."

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