What’s a name reservation and do I need one? This one is pretty straightforward, folks. The Delaware name reservation is an optional service used to reserve a company name with the State of Delaware Secretary of State Division of Corporations, in order to secure the name for an anticipated future-filing. A reservation locks down the company name for 120 days. During that period if someone else wants the name, you “own” it.
The name reservation can be done directly with the State of Delaware Division of Corporations, for $75 or via an authorized Delaware Registered Agent such as Harvard Business Services, Inc. for $75 plus a nominal service fee.
Let’s go over the pros and cons of the Delaware name reservation. We’ll start with the pros.
The first and only advantage is an important one. When you make a name reservation, you’ll ensure that no one else can swoop in and pounce on your name. It’s yours for 120 days so you can take your time forming your company.
Now, the cons.
Reserving the name will incur an additional $75 expense that is not credited towards the State of Delaware’s fees when you file the company. If you decide you want to change the name you will pay the entire fee again.
Reserving the company name yourself with the State of Delaware will often delay the approval process. Without a resevation, HBS can get your company filed and approved within 1-3 business days. If you reserve the name yourself, directly with the State, the approval process can take up to 10 business days. If you decide to reserve the name, you can do it through Harvard Business Services, Inc. If we reserve the name for you, it’ll make it much easier and faster when you decide the time is right to file your new company.
If you reserve the name directly with the State of Delaware and want to file through an agent, like Harvard Business Services, Inc., you’ll need to provide a copy of the name reservation receipt. The State of Delaware will not allow us to file the new company on your behalf without it. If for any reason you cannot locate a copy of the receipt, you can pay an additional fee to transfer the name reservation to us. There’s nothing more frustrating for a brand new company than a bunch of unnecessary expenses before you even get started.
If you have any questions about your Delaware name availability reach out to Harvard Business Services, Inc. today at 1-800-345-2677 ext. 6133. We’re ready to help!
THE AUTHOR OF THIS BLOG ARTICLE IS NOT A LAWYER AND HARVARD BUSINESS SERVICES, INC. IS NOT A LAW FIRM. THE ARTICLE ABOVE IS NOT INTENDED AS LEGAL ADVICE AND SHOULD NOT BE TAKEN AS LEGAL ADVICE. THIS SHORT ARTICLE IS STRICTLY TO MENTION SOME ASPECTS OF DELAWARE’S CORPORATION LAWS AND/OR LAWS RELATING TO OTHER FORMS OF ENTITIES WHICH YOU MAY NOT BE FAMILIAR WITH. WE RECOMMEND THAT YOU CONSULT WITH A LAWYER BEFORE FORMULATING A STRATEGY WHICH WILL BE SUITABLE FOR YOUR SPECIFIC CASE.