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Reserving an LLC Name

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When you have selected an appropriate name, you may wish to reserve the name of the LLC. This step is optional. In my law practice, I almost always skip reserving a company name. The form for reserving an LLC name is typically nearly as long as the form for filing the articles of organization! To me, name reservation just creates more work. If my search reveals that a name has not been taken, I simply file the articles within a few days. If my filing is rejected, I simply work with my client to pick a new name and file again.

If name reservation is important to you, nearly all states offer a name reservation service. Typically, the service requires you to file a brief name reservation application with the secretary of state’s office. See the State Reference Information on the accompanying CD for the basics on name reservation for each state, appropriate forms, and associated filing fees.

A foreign corporation may have established name recognition in one state, but when it seeks authority to do business in another state, it may find that the name it has been using is unavailable because it is already being used.

Name availability is also a concern for foreign LLCs. A foreign LLC is an LLC formed in another state. (LLCs from foreign nations can also be foreign LLCs.) LLCs formed and organized pursuant to the laws of your state are considered domestic LLCs. For example, a California LLC that is doing business in Nevada is a foreign LLC in Nevada and a domestic LLC in California. We discuss foreign LLCs in more detail below in this chapter.

▼ Expert Tip

Before you submit your articles of organization, make certain that the name that you have chosen is available. When selecting a name, have two or three choices ready in the event that your first choice is not available.

If a foreign LLC has established name recognition in one state, but finds that name is already being used in another state, this could be a problem. For example, say you own and operate Advantis LLC in California. Later, you expand into Nevada, so you try to register in Nevada as a foreign LLC, but there is an Advantis Corporation that is a domestic corporation in Nevada. Nevada may not let your LLC qualify there.

Here are some steps you can take to secure and preserve your LLC name:

• Register your LLC name or logo as a trademark or service mark pursuant to federal laws and acquire the right to use your name anywhere in the country, subject to the right of persons using the name prior to your registration of the mark.

• Use state trademark or service mark registration laws to protect your name within the state where you register.

• Reserve the LLC name in all states where your LLC will do business. Name reservations are generally available for no more than 60 to 90 days. Some states do not permit renewal of a name reservation.

Ultimate LLC Compliance Guide

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