Business Formation Glossary
Every term you will encounter in business formation data, explained simply with real examples and lead generation context.
Annual Report
A business annual report (not to be confused with a public company's financial annual report) is a periodic filing required by most states to keep a business entity in good standing.
Articles of Organization
Articles of Organization is the legal document filed with the Secretary of State to formally create an LLC.
Certificate of Formation
A Certificate of Formation is the official document issued by the Secretary of State confirming that a business entity has been legally created.
Corporation
A corporation is a legal entity that is completely separate from its owners (shareholders) under the law.
DBA (Doing Business As)
A DBA (Doing Business As), also called a fictitious business name, trade name, or assumed name, is a registration that allows a business to operate under a name different from its legal entity name.
EIN (Employer Identification Number)
An Employer Identification Number (EIN) is a nine-digit number assigned by the IRS to identify a business entity for tax purposes.
Foreign Qualification
Foreign qualification is the process by which a business entity registers to conduct business in a state other than its state of formation.
Franchise Tax
A franchise tax is a state-level tax charged for the privilege of operating a business entity in that state.
LLC (Limited Liability Company)
A Limited Liability Company (LLC) is a business structure that combines the liability protection of a corporation with the tax flexibility of a partnership.
Operating Agreement
An operating agreement is an internal governance document for an LLC that outlines ownership percentages, member roles and responsibilities, profit and loss distribution, voting rights, and procedures for adding or removing members.
Registered Agent
A registered agent (also called a statutory agent or agent for service of process) is a person or company designated to receive legal and government documents on behalf of a business entity.
S-Corp Election
An S-Corp election is a tax status that an LLC or corporation can choose by filing IRS Form 2553.