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Glossary · 800+ terms

800+ compliance terms, in plain English.

Every acronym, every IRS form, every state-of-incorporation term. Defined by specialists. Cited. Free.

A B C ENTRY · A Annual Report A periodic state filing required to maintain good standing.

A

5 terms

Annual Report

A periodic filing required by most states to keep an entity in good standing. Confirms current officers, registered agent, and principal address. Due dates vary; missed reports trigger penalties and administrative dissolution.

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Articles of Organization

The formation document filed with the Secretary of State to create an LLC. Includes entity name, registered agent, principal address, and management structure.

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Articles of Incorporation

The formation document filed with the Secretary of State to create a Corporation. Includes entity name, registered agent, share structure, and incorporator.

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Apostille

Authentication of a US-issued document for use in a Hague Convention country. Required to register a foreign subsidiary, open a foreign bank account, or use US corporate records abroad.

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Amendment

Articles of Amendment is a state filing to change name, registered agent, address, members, officers, or other items in the original formation document.

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B

2 terms

BOI Report

Beneficial Ownership Information Report. Filed with FinCEN under the Corporate Transparency Act. Post-2025 IFR, most US-formed entities are exempt; foreign-formed entities and edge cases must still file.

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Bylaws

Internal governance document for a Corporation. Defines board roles, voting, officer authority, meeting rules. Not filed with the state but expected by banks, lenders, and auditors.

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C

4 terms

Certificate of Good Standing

State-issued certificate confirming an entity is registered, current on filings, and current on franchise tax. Required by banks, lenders, M&A diligence, and foreign qualification.

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Certified Copy

A state-stamped copy of a formation document (Articles, amendments, conversions). Banks, courts, and foreign agencies often require certified copies rather than printouts.

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C-Corporation

A corporation taxed under Subchapter C of the IRC. Profits taxed at the entity level, dividends taxed at the shareholder level (double taxation). Required for most VC-backed startups.

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Compliance Calendar

A consolidated view of every recurring deadline for an entity: annual reports, franchise tax, BOI updates, RA renewal, sales tax.

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D

3 terms

DBA

Doing Business As. A fictitious business name allowing an entity (or sole proprietor) to operate under a name different from its legal name.

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Dissolution

The formal state filing that closes an entity record. Without dissolution, the entity continues to owe annual reports, franchise tax, and RA fees indefinitely.

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Delaware

The most common state for incorporation in the United States. Known for the Court of Chancery, established corporate case law, and statutory clarity.

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E

1 term

EIN

Employer Identification Number. The federal tax ID for a business entity, issued by the IRS. Required to open a bank account, hire employees, or file business taxes. Free; SS-4 application.

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F

3 terms

Franchise Tax

A state tax on the privilege of being a registered entity. Some states base it on revenue (CA), some on shares (DE), some on a flat fee. Distinct from income tax.

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Foreign Qualification

Registration of an entity formed in one state to do business in another state. Triggered by physical presence, employees, or substantial economic activity.

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FinCEN

Financial Crimes Enforcement Network. The Treasury bureau that receives Beneficial Ownership Information Reports under the Corporate Transparency Act.

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G

1 term

Good Standing

A status assigned by the Secretary of State indicating an entity is current on filings, fees, and franchise tax. Required for many transactions.

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I

1 term

Incorporator

The person who signs Articles of Incorporation at formation. Can be an attorney, formation agent, or founder. Role ends once initial directors are elected.

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L

1 term

LLC

Limited Liability Company. A hybrid entity offering limited liability protection (like a corporation) and pass-through taxation by default (like a partnership). Most popular entity for small US businesses.

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M

2 terms

Member

Owner of an LLC. Equivalent to a shareholder in a corporation. Members hold membership interests, usually expressed as percentages or units.

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Manager

In a manager-managed LLC, the person(s) elected to manage the entity. Can be a member or a non-member.

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O

1 term

Operating Agreement

Internal governance document for an LLC. Defines ownership, voting, distributions, transfers, and dissolution. Required by 5 states (CA, DE, ME, MO, NY); strongly recommended everywhere.

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P

1 term

Pass-through Taxation

Tax treatment where the entity itself is not taxed; profits and losses pass through to owners. Default for LLCs, S-Corps, and partnerships.

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R

2 terms

Registered Agent

A person or company designated to receive legal documents on behalf of an entity. Must have a physical address in the state of registration.

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Reinstatement

State filing to restore an administratively dissolved entity to active status. Available in most states within a window (typically 1-5 years) after dissolution.

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S

4 terms

S-Corporation

A federal tax election (Form 2553) allowing a corporation or LLC to be taxed as a pass-through entity while retaining corporate liability protection.

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Sole Proprietorship

Default business structure for one owner who has not formed an entity. No legal separation from the owner; unlimited personal liability.

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Service of Process

Legal documents (subpoenas, lawsuits) delivered to a registered agent on behalf of an entity.

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Series LLC

A specialized LLC structure available in DE, IL, NV, TX, OK, TN, UT, and a few others. Allows multiple series under one master entity.

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T

1 term

Trademark

A federally or state-registered mark protecting a brand, logo, or name. Federal trademark registration is through the USPTO.

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W

1 term

Wyoming

A popular state for LLC formation due to no state income tax, low fees, and strong asset-protection statutes.

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