The Delaware Corporation Name Reservation - What to Know

When forming a business, your company’s name is one of its most important assets. It’s the cornerstone of your brand, conveying your company’s identity, values, and mission. If you’ve decided to incorporate in Delaware, a state renowned for its business-friendly laws, securing your business name is a crucial first step. In this post, we’ll cover everything you need to know about the Delaware corporation name reservation process, including its benefits, requirements, and step-by-step instructions.

Why Complete a Delaware Corporation Name Reservation?

1. Protects Your Desired Name – Reserving your chosen name prevents other businesses from registering it in Delaware. This ensures that your preferred name is protected while you prepare to incorporate.

2. Guarantees Availability – Delaware is a popular state for incorporating businesses due to its favorable legal environment. With thousands of new entities forming each year, securing your desired name in advance guarantees it will be available when you are ready to incorporate.

3. Provides Time for Preparation – Once you reserve a name, you have 120 days to complete your incorporation paperwork. This window allows you to plan and finalize your business operations, marketing strategies, and other legal requirements without the pressure of losing your desired name.

4. Prevents Last-Minute Changes – Discovering that your chosen name is already taken can lead to costly delays and disruptions in your business plans. Reserving the name in advance prevents these issues and ensures a smoother incorporation process.

Key Requirements for Name Reservation

Before reserving a name in Delaware, there are a few key requirements to be aware of:

1. Name Availability – The name you choose must be distinguishable from existing businesses registered in Delaware. You can check name availability using the Delaware Division of Corporations name search tool.

2. Compliant with Delaware Naming Rules – The name must include one of the following designations: Corporation, Incorporated, Company, Limited, or their abbreviations (Corp., Inc., Co., Ltd.). It should not imply any purpose other than what is stated in your business’s Certificate of Incorporation.

3. No Restricted Words – Your chosen name should not contain words that could mislead the public or suggest affiliation with a government agency, such as “FBI” or “Treasury.” Some words, like “Bank” or “Trust,” may require additional approval.

How to Reserve a Delaware Corporation Name: Step-by-Step Guide

Reserving a corporation name in Delaware is a simple process, but it’s important to follow each step carefully to ensure your application is successful.

1. Check Name Availability – Visit the Delaware Division of Corporations website and use the name availability search tool to ensure your desired name is not already taken or too similar to an existing business name.

2. Complete the Name Reservation Application – Fill in your desired entity name, entity kind (ie: LLC, Corporation, etc…), and entity ending (ie: Inc., Co., LLC, etc…).

   

3. Confirm Name Availability – The prompt will indicate if the name is available.

   

4. Proceed to Payment and Reserve the Name – The application can be submitted online. The fee for name reservation is $75, and this reserves the name for 120 days. 
   
   

5. Receive Confirmation – After submitting your application, you will receive a confirmation letter or email from the Division of Corporations. This confirmation serves as proof that your name is reserved and provides the 120-day reservation period start date.

6. Incorporate Your Business – During the 120-day reservation period, file your Certificate of Incorporation with the Delaware Division of Corporations to officially register your business under the reserved name. If you do not incorporate within this period, the name reservation will expire.

7. Renew or Release the Name Reservation – If you need more time to prepare, you can renew the name reservation for another 120 days by submitting a new reservation form and paying the fee again. If you decide not to use the name, simply let the reservation expire or notify the Division of Corporations to release it.

Common Questions About Delaware Name Reservations

Q: Can I transfer my reserved name to another entity?
A: No, a reserved name cannot be transferred to another party. You must use the name yourself or let it expire.

Q: What happens if I do not incorporate within 120 days?
A: If you do not incorporate within the 120-day reservation period, your name reservation will expire, and the name will become available for others to reserve.

Q: Can I reserve multiple names at once?
A: Yes, you can reserve multiple names, but each name reservation requires a separate application and fee.

Q: What if my desired name is already taken?
A: If your desired name is already taken, consider variations of the name, such as adding or removing a word, or using a different designation like “Corp.” instead of “Inc.”

Final Thoughts

Reserving your Delaware corporation name is a proactive step that helps ensure a smooth start for your business. It protects your brand, gives you time to plan, and prevents potential naming conflicts. By following the steps outlined above and adhering to Delaware’s naming rules, you can secure your desired business name and move forward with confidence.

For those unfamiliar with the process or facing complex naming challenges, consulting a legal professional or business advisor can provide additional guidance and support. Remember, a strong business name is the foundation of your brand—make sure you secure it wisely!