Delaware has a free online system for checking legal entity name availability. You can use it to see whether another business is already formed or registered in Delaware with the same name (or a confusingly similar name). The tool is available here: Delaware name reservation and availability search.
How the Delaware name reservation system works
The system is easy to use and can make your filing process more efficient. For example, if you file a Certificate of Incorporation with a name that is already taken, Delaware will reject the filing and you will need to refile with a new name.
Should you reserve the name for $75?
If the name you want is available, Delaware will give you the option to reserve it for $75. The reservation expires, so it is not a long term hold. Whether you should reserve the name depends on your timeline and how you plan to file.
If you are filing the entity yourself soon, and you are confident this is the only name you want, reserving can reduce the risk that someone else takes the name before you file. On the other hand, if you plan to use a law firm or another third party to file, a reservation can create extra administrative friction because the Delaware process for using a pre-reserved name is not always intuitive for third-party filers. If you are using counsel, ask them whether they prefer to reserve the name or simply proceed straight to filing.
What the Delaware name reservation does not cover
Even if a name is available in Delaware, that does not mean it is available in other states. It also does not mean you have cleared trademarks, secured a matching domain, or confirmed that the name is safe to use from a branding perspective.
The Delaware name reservation system is checking only one narrow question: whether another entity is formed or registered in Delaware with the same name (or a name that is close enough to block your use). Before you commit to a name, you should also do a quick reality check elsewhere.
Do a quick web search: see what shows up and whether there are obvious conflicts.
Check domains: confirm whether a domain you can live with is available, even if it is not the exact match.
Do a basic trademark search: check the USPTO database for similar marks in relevant categories.
Think about expansion: if you plan to qualify to do business in other states soon, do a quick availability check there too.
If you find a conflict, it is usually cheaper to adjust the name before you file than to fix it after you have started building brand equity.
Ryan RobertsStartup Lawyer
Ryan Roberts is a startup lawyer at Roberts Zimmerman PLLC with more than two decades of experience advising startups and venture capital investors. He is the author of “Acceleration” and StartupLawyer.com.
