What is a Name Reservation in Texas?

What is a name reservation in Texas?
Before you file a Certificate of Formation to start a Texas business, you can reserve the name you wish to register. A name reservation will hold your desired business name for a period of 120 days. Name reservations can be renewed if necessary.

A name reservation in Texas is a procedure that enables companies to hold onto a certain name for potential use. When a company is still in the planning stages and not yet prepared to register with the state, a name reserve is frequently necessary. A company can guarantee that the name they choose is available and can be utilized when the time comes to register by making a name reservation.

How much does it cost to reserve a business name in Texas taking this into account?

In Texas, a business name reservation costs $40. This cost must be paid at the time of booking and is not refundable. It’s crucial to understand that reserving a name does not ensure that it will still be available when the time comes to register the firm. But it does offer some protection and can assist stop rival companies from using the same name. How can I secure my company name in Texas?

You must submit a Name Reservation Application to the Texas Secretary of State in order to reserve a business name there. Both online and mail applications may be submitted. The name to be reserved, the person or organization reserving the name, their name and address, and the name’s intended purpose must all be included in the application.

Is a DBA the same as a name reservation?

No, a name reservation and a DBA are not the same thing. A DBA, or “doing business as,” registration enables a company to conduct business under a name other than its legal name. On the other hand, a name reservation is only a means to save a certain name for later usage.

How long may a name be held in reserve?

A name reservation in Texas is good for 120 days after it has been approved. The reservation will expire and the name will be open for use by other companies if the company does not register with the state within that period.

In conclusion, making a name reservation is a crucial first step for companies who are just starting out and want to make sure their selected name will still be available in the future. Businesses can reserve a name for 120 days and take the first step toward state registration by submitting a Name Reservation Application and paying the $40 fee. It is crucial to understand that a name reservation differs from a DBA and does not ensure that the name will be available for registration.