Delaware Name Reservation 120 Days & $75

Delaware Name Reservation: The Direct Answer on the 120-Day Hold and the $75 Fee

Under the Delaware Division of Corporations name reservation process, an entity name can be held for a period of 120 days for a fee of $75.00. The reservation is optional: it is not a requirement in order to form your entity, but it guarantees that the name is held for you during that 120-day window. Reservations can be submitted online, and the Division accepts Visa, Master Card, American Express or Discover cards. If you reserve online, print your confirmation page; the Division notes that all transactions submitted on its site are non-refundable. A written reservation application is also accepted and may be uploaded, faxed or mailed to the office.

This article explains what the 120-day reservation does and does not do, how the $75 fee fits into the wider formation sequence, and which founders should treat a reservation as a planning step rather than a formality. It draws on the Delaware Division of Corporations guidance on forming an entity, including its notes on name reservation, filing submission and the registered agent requirement.

What the 120 days actually cover

The 120-day period is a hold on the name, not a substitute for formation. Forming the entity still requires submitting a certificate of incorporation or formation and paying the applicable filing fees upon submission. Because the reservation is optional, a founder who is ready to file immediately may not need one at all; the reservation matters most when there is a gap between choosing a name and filing.

How the $75 fee sits in the sequence

The $75.00 reservation fee is separate from formation filing fees. It is paid when the reservation is submitted, and online payments are non-refundable, so the decision to reserve should be made deliberately. A reservation also does not remove the separate Delaware requirement that every business entity maintain a registered agent in the state, with a physical street address in Delaware.

Who Should Plan Around the Delaware 120-Day Name Reservation and the $75 Fee

The reservation is optional, so the real question is not whether you can form a Delaware entity without it, but whether holding a name for 120 days fits your timeline. Consider reserving when your formation date is not yet fixed, when you are still comparing entity types or jurisdictions, or when the name matters commercially and you do not want another filer to take it first. Skip it when you intend to file your formation documents immediately, because the reservation would add a step and a fee without changing the outcome.

Main Planning Decisions Before You Reserve

First, decide whether the name is genuinely at risk. A reservation protects a name; it does not create an entity, authorize business activity, or substitute for any later filing. Second, decide your formation window. The 120-day hold is useful only if you expect to file within that period. Third, decide who will hold the reservation and receive correspondence, since the reserved name must eventually connect to a formed entity and a registered agent.

How This Fits With Your Wider US Setup

Name reservation is one early administrative step among several. If you are also preparing federal tax registrations, note that the IRS issues an Employer Identification Number directly and free of charge through its online tool, and warns applicants to beware of websites that charge for an EIN (Internal Revenue Service, Get an employer identification number). That application must be completed in one session, expires after 15 minutes of inactivity, and requires you to start over if it times out. Planning the name hold and the EIN application as separate tasks, each with its own timing rules, keeps your formation sequence orderly.

For a structured walkthrough of Delaware formation and related US registrations, see our USA company registration resource.

Preparing Before You Reserve a Delaware Name: Information to Gather First

The preparation stage for a Delaware name reservation is short, but it is the stage where most avoidable delays occur. Before opening any filing tool, confirm four things: the exact name you want to hold, at least one fallback name, the entity type the name will be attached to, and the payment method you intend to use. Because a reservation is optional and sits outside the formation filing itself, the reservation step should be treated as a separate task with its own inputs — not as something you improvise while completing a certificate of formation.

Name Formatting and Availability Checks

Name formatting rules matter more than many applicants expect. The IRS notes for its own online EIN tool that “the business name you enter must conform to certain formatting rules,” and the same discipline applies when you submit a name for reservation: the name must be entered exactly as you intend to use it, including punctuation, spacing, and any entity designator. Decide in advance whether you are reserving a name for a corporation, a limited liability company, or another entity type, because the designator is part of the name you are holding.

Prepare a primary name and at least one alternative. If the primary name is already on file, you will need a substitute ready rather than restarting your research. Checking availability before you begin the reservation reduces the chance of an abandoned submission.

Payment and Session Readiness

Have your card details available before you start. The Division of Corporations accepts Visa, Master Card, American Express or Discover cards for online filings. If you are working with a third party, confirm who is authorized to submit and pay, since authorization questions are common at this stage.

One transferable lesson from the IRS online EIN process is that single-session tools do not wait for you. The IRS states that its application “expires after 15 minutes of inactivity, and you’ll need to start over,” and that you should “complete the application in one session” because “you can’t save it for later.” Treat any state online filing tool with the same assumption: gather your inputs first, then submit in one sitting.

What to Confirm Before You Pay

Finally, confirm your formation timeline. A reservation is worth the fee when your filing date is not yet fixed; it is unnecessary when you intend to file formation documents immediately. Deciding this before payment prevents paying twice for the same objective.

How to File a Delaware Name Reservation: A Step-by-Step Walkthrough

Filing a Delaware name reservation is a short administrative task, but the sequence matters because the reservation sits outside the formation filing itself. The steps below describe the general order of operations. Confirm current form fields, payment options and processing details directly with the Delaware Division of Corporations before you file, since filing interfaces and instructions can change.

Step 1: Confirm the exact name and at least one fallback

Before you open any filing tool, settle on the precise spelling, punctuation and entity designator you want to hold. Prepare a second-choice name as well. If the first name is unavailable, having a fallback ready lets you continue in the same session rather than restarting your preparation.

Step 2: Check availability, then submit the reservation

Search the state’s business name records to see whether the name is already in use or too similar to an existing entity. If it appears clear, submit the reservation request through the Division’s filing channel. The reservation holds the name for 120 days for a $75.00 fee, and the Division accepts major credit cards for online payment.

Step 3: Keep the confirmation and calendar the expiry

Once the reservation is accepted, retain the confirmation record and note the 120-day end date. Treat that date as a planning milestone, not a formality: if your formation filing has not been submitted by then, the hold lapses and the name returns to general availability.

Step 4: Move into formation before the window closes

The reservation protects the name; it does not create the entity. Formation documents must still be filed separately, and the reservation should be referenced where the filing process allows. If your timeline slips, decide early whether to file a new reservation rather than discovering the lapse at the formation stage.

Where this fits alongside other US setup steps

Name reservation is one item in a broader US company registration sequence that can include entity formation, obtaining an Employer Identification Number, and appointing a registered agent. For the EIN step, the IRS notes that its online tool issues a number immediately when the application is approved, that the application cannot be saved and expires after 15 minutes of inactivity, and that you never have to pay a fee for an EIN. Those characteristics are worth knowing when you sequence state-level name work against federal tax registration.

For a fuller checklist covering formation, agent requirements and federal steps, see our US company registration resource guide.

Document and Evidence Checklist Before You Reserve a Delaware Name

A Delaware name reservation is a short filing, but the quality of the information you feed into it determines whether the 120-day hold actually protects the name you intend to use. The checklist below groups what you should have on hand into four categories. Each category exists for a reason: the Division of Corporations will match your reservation request against its records, and any mismatch between what you reserve and what you later file can waste the holding period.

1. Identity and naming evidence

• The exact proposed entity name, spelled and punctuated precisely as you want it to appear.
• At least one fallback name, in case the first choice is unavailable.
• The entity type the name will attach to (for example, a corporation or a limited liability company), because the required ending word or abbreviation depends on it.
• Any consent or supporting document required when the name implies a regulated activity or incorporates a reserved word.

This category matters because a reservation only holds the specific name you submit. If the reserved name and the name in your later formation documents differ, the reservation does not carry over.

2. Applicant and contact details

• The name and address of the person or entity requesting the reservation.
• A working email address and telephone number for correspondence.
• Signed authorization if a third party is filing on your behalf.

Contact details matter because the reservation is a time-limited administrative act. If the Division needs to query the filing, the response window runs against your 120 days.

3. Payment evidence

• Confirmation that your card type is accepted, and a record of the payment once made.
• A receipt or acknowledgement showing the reservation was accepted.

Keep the payment record with your formation file. It is the simplest proof of the date the hold began.

4. Downstream filing documents

• Draft formation documents using the reserved name.
• Your intended registered agent and registered office details.
• Where a US federal employer identification number will be needed, note that the IRS issues an EIN directly and free of charge through its online tool, and that the application must be completed in one session because it expires after 15 minutes of inactivity (Internal Revenue Service, Get an employer identification number).

This category matters because the reservation is only useful if the formation filing follows within the hold period. Assembling these documents in advance shortens the gap between reserving and filing.

Treat this checklist as a preparation aid, not a substitute for current guidance. Confirm form fields, accepted payment methods and processing details with the Delaware Division of Corporations before filing, since interfaces and instructions can change.

What Happens to a Reserved Delaware Name If You Do Not Form Within 120 Days

The 120-day reservation window is a fixed hold, not a renewable subscription. If you do not file your formation documents before the window closes, the name is released back into general availability. At that point, another filer can reserve or form under the same name, and your earlier reservation gives you no priority. This is the single most common planning gap: founders treat the reservation as a placeholder that can be extended later, when in practice the protection simply ends.

Because the reservation is optional and sits outside the formation filing, it does not create an entity, does not assign an entity file number, and does not generate any filing obligation. It only holds the name. That distinction matters when you map your timeline: the 120 days should be counted backward from your realistic formation date, not forward from the day you pay.

Scenario: Your Formation Date Slips

Suppose you reserve a name in month one, then spend three months negotiating with a co-founder or waiting on a bank account decision. You still have room. Suppose instead you reserve early and your formation slips past day 120. The practical options are to re-reserve the same name if it is still available, or to move to a fallback name you already identified. This is why preparing at least one alternative name before you reserve is not optional housekeeping; it is the contingency that keeps a delayed launch from becoming a renamed launch.

Scenario: You Form Immediately

If your certificate of incorporation or formation is ready to submit, the reservation adds a step and a fee without adding protection you need. The Delaware Division of Corporations states the reservation is not a requirement in order to form your entity. Founders who are ready to file generally file directly and let the formation itself establish the name.

Where the Reservation Sits Relative to Other Steps

A Delaware reservation does not replace the registered agent requirement. Delaware law requires every business entity to have and maintain a registered agent in the state, with a physical street address in Delaware. Separately, if you will need a US Employer Identification Number, the IRS provides an online application at no charge; the IRS states you never have to pay a fee for an EIN, and the session cannot be saved and expires after 15 minutes of inactivity. These are independent steps with their own timelines, and none of them extends the 120-day name hold.

Treat the reservation as a dated option: useful when your formation date is uncertain, unnecessary when it is fixed, and expired the moment the window closes.

Common Mistakes, Risk Controls and Practical Next Steps After Reserving a Delaware Name

Most problems with a Delaware name reservation are not caused by the filing itself. They come from treating the 120-day hold as something it is not: a permanent right to the name, a substitute for formation, or a step that can be corrected later without cost. The reservation is optional and guarantees that the name is held for you for a period of 120 days for a fee of $75.00, and all transactions submitted through the Division of Corporations site are non-refundable. That combination makes prevention cheaper than repair.

Mistake 1: Reserving a name you never intend to file under

A reservation protects a name, not a business plan. If you reserve early and then change the entity type, the jurisdiction, or the spelling of the name, the hold may no longer match what you eventually file. Control: reserve only after you have settled the exact name and the entity type it will attach to, and keep at least one fallback name ready.

Mistake 2: Assuming the hold can be extended

The 120-day window is a fixed hold. If formation documents are not filed before it closes, the name returns to general availability and another filer can take it. Control: work backwards from the reservation date and set an internal filing deadline well before day 120, not on it.

Mistake 3: Overlooking the registered agent requirement

Delaware law requires every business entity to have and maintain a Registered Agent in the State of Delaware, with a physical street address in Delaware. A reservation does not satisfy this. Control: confirm your registered agent arrangement before or alongside formation, since it is a separate legal requirement from holding the name.

Mistake 4: Treating the reservation as the formation filing

Reserving a name does not create an entity. Formation requires submitting a Certificate of Incorporation or Formation, and all filing fees must be paid upon submission of the request. Control: keep the reservation and the formation filing as two distinct steps in your checklist, each with its own documents and payment.

Practical next steps

After reserving, print or save your confirmation page if you filed online, diarise the expiry date, and confirm your registered agent and formation documents are ready to submit. If your timeline is uncertain, treat the $75.00 as a time-limited option rather than a guarantee, and verify current instructions directly with the Delaware Division of Corporations before you file.

Closing Notes and FAQs on the Delaware 120-Day Name Reservation and the $75 Fee

This part closes the guide with the practical questions that remain after the mechanics are clear. The Delaware Division of Corporations allows for the reservation of an entity name; it is not a requirement in order to form your entity, but it guarantees that your name is held for you for a period of 120 days. The fee is $75.00, payable online by Visa, Master Card, American Express or Discover card, and all transactions submitted on the Division’s site are non-refundable. Written reservation applications may also be uploaded, faxed or mailed to the office.

Two framing points are worth keeping in view. First, the reservation is a hold on a name, not a filing of an entity, so it does not create a company, appoint a registered agent, or satisfy any later formation step. Delaware law requires that every business entity have and maintain a Registered Agent in the State of Delaware, and that requirement attaches to the entity you eventually form, not to the reservation itself. Second, the 120-day window is fixed; if formation documents are not filed before it closes, the name returns to general availability.

For founders comparing jurisdictions, it helps to separate name-holding rules from formation rules. In the United Kingdom, for example, Companies House guidance on registering a company limited by shares describes the statement of capital and shareholder details submitted during registration, and notes that a company limited by shares must have at least one shareholder, who can be a director. Those are formation requirements, not name-reservation rules, and they illustrate why a name hold in one jurisdiction should not be read as a substitute for another jurisdiction’s filing steps.

If you are still deciding whether to reserve, treat the $75 fee as a time-buying cost: it is useful when your formation date is genuinely uncertain, and unnecessary when you intend to file immediately. Confirm current form fields, payment options and processing details directly with the Delaware Division of Corporations before you file, since filing interfaces and instructions can change.