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All the business and legal terms you need to know, explained in plain English.
Articles of Organization
The founding document filed with the state to officially create an LLC. Contains basic information like the LLC name, address, and registered agent.
Articles of Incorporation
The founding document filed with the state to create a corporation. Similar to Articles of Organization but for corporations.
Registered Agent
A person or company designated to receive legal documents on behalf of a business entity. Required by law in every state.
Operating Agreement
A legal document governing the internal operations of an LLC, including member rights, profit distribution, and management structure.
EIN (Employer Identification Number)
A federal tax ID number assigned by the IRS to identify a business entity. Required for banking, hiring, and tax filing.
Good Standing
The status of a business entity that has met all state filing and fee requirements. Required to conduct business legally.
Foreign Qualification
The process of registering an existing business entity to operate in a state other than where it was originally formed.
DBA (Doing Business As)
A trade name or assumed name under which a business operates, different from its legal registered name.
Pass-Through Taxation
A tax structure where business income passes directly to the owners' personal tax returns, avoiding corporate-level taxation.
S-Corporation
A tax election that allows a corporation or LLC to pass income through to shareholders while potentially reducing self-employment taxes.
Piercing the Corporate Veil
A legal action that holds business owners personally liable for business debts, typically due to commingling funds or failing to maintain proper records.
Annual Report
A periodic filing required by most states to update business information and maintain good standing. Deadlines and fees vary by state.
State Processing & Holidays
State offices observe different holidays and have varying processing schedules. Processing times listed are estimates and may be affected by state office closures.
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