I'm finally pulling the trigger on an LLC for my freelance gig. The state's name reservation fee is like $60 and holds the name for 120 days. Is it actually worth paying that, or should I just file the articles right away and skip the reservation? I'm not 100% ready to file (still tweaking my operating agreement), but I also don't want to lose the name. What do you guys think?
LLC
Is reserving an LLC name worth the extra filing fee?
Skip it. Unless your name is super generic, nobody's going to snatch it in the next few weeks. I filed my articles the same day I decided on a name and saved the $60.
I reserved mine because I was waiting on a lease to close and didn't want to risk it. But honestly? Probably overkill. The peace of mind was nice though, not gonna lie lie.
What state are you in? Some states apply the reservation fee toward your filing fee later, so it's basically free. Others don't. Check that first.
Oh good point about the state. I'm in Oregon. I'll look that up.
NimbleNarwhal is spot on. In my state (Colorado) the reservation fee is separate and non-refundable, so I skipped it. Just filed. But hey, if you're not ready to file and the name is decent, $60 for 4 months of holding it isn't crazy. Cheaper than rebranding later.
Rebranding a business you haven't even started yet? That's a stretch. Just file the articles now, you can always amend later. The operating agreement doesn't stop you from filing.
I'd say it depends on how unique the name is. If its something like 'Pixelated Owl LLC' you're probably fine. If it's 'Main Street Consulting' then yeah, someone else might grab it.
Also, even if you reserve it, that doesn't guarantee you can use it. Trademark issues and all that. So the reservation is just a placeholder with the state. Don't overthink it
This thread is making me realize I wasted $50 on a reservation last year. Oh well. Live and learn.
Honestly the bigger question is why you're still tweaking an operating agreement. Just use a template and file. You can always amend it later. Stop overthinking.