Texas LLC Name Reservation (Form 501)

If you have found an available LLC name but are not ready to file your Certificate of Formation immediately, Texas allows you to reserve the name for 120 days. This prevents anyone else from registering a business entity with that name while you prepare your formation documents. The filing fee is $40.

How Name Reservation Works in Texas

Name reservation is governed by the Texas Business Organizations Code. Filing Form 501 with the Texas Secretary of State gives you exclusive rights to the reserved name for 120 days from the date of filing.

Key facts:

• Form: Application for Reservation of Entity Name (Form 501)
• Fee: $40
• Duration: 120 days from filing date
• Renewable: Yes — you can file a new reservation before the current one expires
• Transferable: Yes — you can transfer the reservation to another person by filing a notice with the SOS
• Filed with: Texas Secretary of State (online via SOSDirect or by mail)

How to File Form 501

Online via SOSDirect:

1. Log in to SOSDirect at https://direct.sos.state.tx.us/
2. Navigate to Name Reservations
3. Enter the exact name you want to reserve (including LLC designator)
4. Pay the $40 fee
5. Receive confirmation — the reservation is effective immediately upon filing

By mail:

• Download Form 501 from the SOS website
• Complete the form with the exact desired name and applicant information
• Mail with $40 payment to: Secretary of State, P.O. Box 13697, Austin, TX 78711-3697

When to Reserve a Name

Name reservation makes sense when:

• You need time to finalize your operating agreement among members before filing
• You are waiting on funding or a business partner before officially forming
• You need to secure professional licenses or permits that require a specific entity name
• You are coordinating formation with an attorney and need a few weeks
• You want to lock down the name while securing a matching domain name and social media handles

When reservation is unnecessary:

• If you are ready to file your Certificate of Formation within the next few days — just file directly
• If your name is highly unique and unlikely to be taken by someone else in the meantime

What Reservation Does NOT Do

• Does not create your LLC — you still need to file Form 205 (Certificate of Formation)
• Does not provide trademark protection
• Does not prevent someone from using a similar (but not identical) name in everyday business
• Does not reserve the name permanently — it expires after 120 days if you do not form or renew

FAQ

Can I extend my name reservation beyond 120 days?

You cannot extend an existing reservation, but you can file a new Form 501 with another $40 fee before the current reservation expires. There is no limit on consecutive reservations.

What happens when my reservation expires?

The name becomes available again for anyone to register. If someone else files a Certificate of Formation with that name after your reservation expires, you lose the name.

Can I reserve a name and then form under a different name?

Yes. The reservation simply protects that specific name. You are not obligated to use it. If you form under a different name, the reserved name expires unused.

Is the $40 fee applied toward my formation filing fee?

No. The $40 reservation fee is separate from the $300 Certificate of Formation filing fee. You pay both if you reserve first and then form.

Can a non-Texas resident reserve a name?

Yes. There are no residency requirements for filing a name reservation. Anyone can reserve a Texas entity name.