What Is a Texas Business Name Reservation?
A Texas business name reservation holds a preferred entity name before the formation or registration filing is ready.
Texas uses Form 501 for this filing. A reservation gives the owner time to finish the business filing while keeping the selected name reserved in the Texas Secretary of State record.
A reservation is useful when the name decision is made before the rest of the filing is ready. It is also useful when several people need to approve the formation documents and the name should not be left open during that delay.
Texas Entity Name Reservation
Texas Form 501 reserves an entity name for 120 days.
The reservation does not form the company. It only reserves the name. The formation, registration, or other business filing still has to be handled through its own Texas Secretary of State filing.
Before reserving a name, check the Texas business name record. If the name is already in use, a reservation filing will not fix that problem.
Steps for Reserving a Texas Entity Name
Start with the name itself. Confirm the spelling and punctuation you want to use in the later business filing.
Then use Texas Form 501 for the name reservation. The filing should identify the name to be reserved and the person or company requesting the reservation.
Once accepted, the reservation lasts 120 days. If more time is needed, Texas treats renewal as the same Form 501 reservation path.
Texas Entity Name Reservation: Fee Breakdown
The Texas filing fee for Form 501 is $40.
The same $40 fee applies to a 120-day reservation or renewal. Budget for that state fee separately from the later formation or registration filing.