Making a name decision is one of the first steps in launching a new business. But what if you locate the ideal name only to find that it has already been taken? The idea of reserving a business name is applicable in this situation.
A reserved company name is one for which a request to reserve the name has been made to the appropriate state agency. By doing this, the name is effectively put on hold, prohibiting anybody else from using it while the person who reserved it decides whether to proceed with the business or not. Name reservations typically have a 120-day validity window.
You must submit a form to the relevant state agency if you wish to reserve a business name. You would submit a Form 501 to the Secretary of State’s office in Texas, for instance. Upon approval of your application, you will be sent a Certificate of Reservation, which attests that the requested name has indeed been reserved for your usage.
So what happens after reserving a business name? After you’ve chosen a name, you must register your business by filing for incorporation or registration. Here, you can formally register your company with the government and get the licenses and licences you need to run it.
The Certificate of Reservation must be presented as proof that the name is available for use when you apply for incorporation or registration. The name reservation will expire and become accessible to others once again if you don’t register or incorporate within the given period (120 days in Texas).
What it costs to register a business name in Texas depends on the kind of enterprise you are launching. The cost is $300 for most business kinds. However, the price is $25 for several companies, including organizations and professional corporations.
How do you determine if a business name is already being used? To find out if a business name is already in use in Texas, you can search the Secretary of State’s online database. You can proceed with a name reservation or registration if the desired name is not already taken.
Consequently, anyone launching a new firm must take the proper steps to reserve a business name. While you consider whether to move through with the firm, it enables you to reserve the name you desire and stops others from using it. Just keep in mind that reserving a name is only the first step; to formally launch your firm, you must register for incorporation or registration.
In Texas, a DBA (Doing Business As) can be obtained online. A Certificate of Assumed Name must be submitted to the Texas Secretary of State as part of the procedure. Through a third-party service provider or the Secretary of State’s website, you can complete this process online. Once the certificate has been submitted, you can start using your selected business name in Texas.