What are the legal steps to follow when choosing and reserving a name for a new corporation in California?

To reserve a corporate name in California, you must confirm the name is available and not misleading, then submit a formal reservation request to the California Secretary of State. This action holds the name for your use for 60 days while you prepare to file your formation documents. Here are the legal steps to choose and reserve your corporate name: Step 1: Review Name Requirements and Restrictions Your proposed corporate name must contain a corporate designator like "Corporation," "Incorporated," or an abbreviation such as "Inc." or "Corp." Per California Corporations Code Section 201(a), you cannot use words like "Bank," "Trust," or "Insurer" without specific regulatory approval. The name must not be misleading to the public. Step 2: Conduct a Preliminary Name Search Use the free online Business Search tool on the California Secretary of State's website. This search helps you determine if your chosen name is already taken or is too similar to an existing registered business name. While this search is not a final guarantee, it is a crucial step to avoid an immediate rejection. Step 3: Complete the Name Reservation Request Form Download the official Name Reservation Request form from the Secretary of State's website. Fill it out completely, providing the exact name you wish to reserve and the name and address of the person or company requesting the reservation. Step 4: Submit the Form and Filing Fee Mail the completed form with the required $10 filing fee to the Secretary of State's main office in Sacramento. You may pay by check or money order. For faster processing, you can deliver the form in person and pay an additional special handling fee. Important Details and Nuances If the name is available, the Secretary of State will reserve it for your exclusive use for a 60-day period. This reservation is not renewable. You must file your Articles of Incorporation using the reserved name within this 60-day window. The reservation certificate should be kept for your records. Warnings and Limitations A name reservation does not create any trademark rights or protect you from claims of trademark infringement. It only prevents another entity from registering an identical or deceptively similar corporate name with the California Secretary of State during the reservation period. The final approval of your corporate name occurs only when your Articles of Incorporation are successfully filed. This is general information and does not constitute legal advice. For complex situations, such as potential trademark conflicts or issues with restricted words, you should consult with a qualified California attorney.