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 Utah. 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.
Are You Required to Reserve a Business Name?
No, in Utah, name reservation isn’t a mandatory part of the LLC formation process. If you’re ready to start your business without reserving a name, you can skip straight to filing your Articles of Organization.
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 Utah LLC registration.
You have the option to reserve your LLC name, but it’ll cost you a $22 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 Utah 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 Utah Business Name Reservation Last?
Anyone planning to do business within the state of Utah can reserve an entity name. The good news is that you can keep a name reserved as long as you’d like. The bad news is that you’ll have to file renewals and pay additional fees for each renewal.
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 Utah lasts 120 days from the time of filing, during which you have exclusive rights to your name. You’re allowed to renew your reservation before it expires by submitting the same reservation form with the box for “Renewal” checked. You’ll also need to pay another $22 fee.
Want to give that name to someone else? You can transfer it by submitting a signed notice to the Division of Corporations and Commercial Code which includes the name and address of the transferee.
How do I Reserve a Business Name in Utah?
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 by using the Division of Corporations and Commercial Code Business Search function. Just search your desired name to see if it’s taken. Don’t forget that you also need to comply with other business entity name restrictions from the state of Utah (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.
Now it’s time for the paperwork. First, download an “Application for Reservation of Business Name.” The Department of Commerce does not accept handwritten forms, so you’ll need to type your information. All you need is the name you want to reserve, the name’s business use, and your personal contact info.
Reserving a name costs $22, which you can pay via check, money order, cash, or card, depending on how you submit your document. Here are your options:
Mail: Pay with a check or money order made out to “State of Utah,” and mail your materials to the Utah Division of Corporations & Commercial Code, P.O. Box 146705, Salt Lake City, Utah 84114-6705.
In Person: Pay with check, money order, card, or cash. Hand deliver your materials to the Heber M. Wells Building at 160 E 300 S, 1st Floor, Salt Lake City, Utah 84111
Fax: Pay with a card by including a “Fax Cover Letter.” Fax your materials to (801) 530-6438.
That’s all there is to it! Your name will be all yours soon. Keep in mind that reserving a name does not officially register a business. You will still need to file your Articles of Organization with the Department of Commerce to launch your LLC.
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 Utah to get started instead. This way, rather than paying an additional $22 for the name reservation application, you’ll only pay the one-time $70 Utah LLC formation fee to claim your name and form the LLC at the same time. $22 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 Utah.
While LegalZoom is by far the most well-known LLC formation service and has decent overall value, we highly recommend looking into IncFile or Northwest Registered Agent. We’ve done the research so you don’t have to, and these two are reliable, professional, and efficient.
We compiled our meticulous research into thorough comparison guides for you to use. Take a look if you’re considering a professional LLC service. It’s well worth your time.