Your company name is important. It’s your first impression, and it’s how people will remember you.
You don’t want to be the business with a forgettable name. So, when you’ve got that perfect name in mind, that clever alliteration or meaningful acronym, you might think about reserving it before someone else does.
Naming your company is one of the first official steps when starting an LLC in Colorado. In certain situations, it may be necessary to reserve a business name while you’re preparing to bring your business idea to life.
In this article, we’ll explain when reserving a business name is necessary and guide you through all the steps involved.
Don’t forget to get your business domain name so nobody else can use it. This will protect your brand and make things much easier for you later. Secure it easily through GoDaddy.
Are You Required to Reserve a Business Name?
In certain states, it may be required to reserve your LLC name, but this is not the case in Colorado. Anyone who wants to reserve a business name has the option, but it’s not a mandated part of the LLC registration process.
Should You Reserve Your LLC Name?
Maybe it took you sleepless nights of brainstorming, or maybe you thought of it while sitting at a traffic light. No matter how you came up with your memorable LLC name, you’ll want to make sure that it’s available and ready to use when you file your Colorado LLC registration.
You have the option to reserve your LLC name, but it’ll cost you a $25 fee. Overall, it’s cheaper to skip this fee and simply start your business, which will lock in your name.
However, there are cases where you may not be ready to officially start your business. Filing an application to reserve your business name gives you “dibs” and ensures that competitors aren’t able to snag it while you’re preparing for launch.
If your business name is unique, including unusual spellings or characters and/or family names, it may not be necessary to reserve a Colorado business name ahead of time. Plus, paying the extra state fee to reserve your business name could be a waste of resources if you’re planning to launch your business soon after.
How Long Does a Colorado Business Name Reservation Last?
Anyone planning to do business within the state of Colorado can reserve an entity name. Even better is the fact that you can renew your name reservation as many times as you like, provided you file the correct renewal form and pay a fee each time.
Filing your name registration prevents another entity from using that name to conduct business in the state during the time of your hold. An entity name reservation in the state of Colorado holds your name for 120 days and can be renewed indefinitely. When your 120 days are about to expire, you can renew your hold by filing a Statement of Renewal of Reservation of Name online. Find a link to this electronic form on the S.O.S. Business Forms List under “Name Reservations.” You’ll need to pay an additional $25 fee for every renewal you file.
Say you want another member of your LLC to handle the name reservation process, or you’d prefer your registered agent to handle the responsibility. There’s a form for that too. Simply file a “Reserved Name Transfer” online and, you guessed it, pay an additional $25 fee. Transferring does not extend or renew your reservation; it only changes the ownership.
How do I Reserve a Business Name in Colorado?
Got a name in mind? Perfect. Follow these steps to reserve it.
Before submitting your application to reserve your business name, you first need to check name availability. The Colorado Secretary of State website makes it easy. Their Name Availability Search lets you compare your name idea to all other registered and reserved names on file. And if you want to ensure that there aren’t any deceptively similar names out there, you can also search the Business Database. Don’t forget that you also need to comply with other business entity name restrictions from the state of Colorado (find them all here). All good? Then check to see if your LLC name is available. If it is, let out a sigh of relief—you’re ready to reserve it.
If you like to do business by postal mail, unfortunately, this isn’t an option for reserving an LLC name. The Statement of Reservation of Name must be submitted online. The good news is that it’s a quick and easy process.
On the Secretary of State website, navigate to the Business Forms List. At the top, click the link for “Reserved Names.” There, you’ll find everything you need to reserve, renew, or transfer a business name. Click “File Online,” and you’ll be prompted to enter the name you’d like to reserve. The next screen will ask you for your personal and business information. Complete the form and, congratulations, that business name is all yours!
For a step-by-step walkthrough of this process, refer to the instructions provided by the Secretary of State website.
Like the other forms associated with name reservations, the Statement of Reservation comes with a $25 fee, which you can pay by credit card as part of the online filing process.
Wrapping up and Choosing the Best Route
Your LLC name is an important part of the business. If you’re not ready to launch your business, but you’ve got a perfect name and you think someone else might claim it, consider reserving it.
However if your business is ready for takeoff, use our comprehensive guide to forming an LLC in Colorado to get started instead. This way, rather than paying an additional $25 for the name reservation application, you’ll only pay the one-time $50 Colorado LLC formation fee to claim your name and form the LLC at the same time. $25 isn’t a fortune by any means, but this will at least save you the hassle of reserving a name and registering an LLC separately.
Save Time by Using a Professional LLC Service
As a business owner, you have a lot to think about. Pile on the responsibility of handling state correspondence, tax information, and more while keeping your LLC compliant, and you’ve got yourself a pretty full plate. Sometimes the best move is to let someone else take care of the paperwork for you. This way, you can sleep easy knowing you’ll never miss a deadline or compliance requirement with the state of Wyoming.
While LegalZoom is by far the most well-known LLC formation service and has decent overall value, we highly recommend looking into ZenBusiness or Northwest Registered Agent. We’ve done the research so you don’t have to, and these two are reliable, professional, and efficient.