Glossary · Formation and compliance
Small business terms, in plain English
58 terms a new owner meets, and 27 of them link straight to the tool or filing that handles it.
Search or jump to a letterHow to use this
Search the list or jump by letter. Each entry gives the meaning in a sentence or two, then links the page that acts on it. This is education, not legal or tax advice.
Written and checked against our own guides on November 5, 2026.No match yet. Try a shorter word, or ask Vitez, our AI assistant, on the Vitez page.
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- 1099-NEC
- The IRS form a business sends to contractors it paid for services. An LLC may owe one or receive one.Do it with usBatch your 1099sDoes an LLC get one?
A
- Administrative dissolution
- The state ends your LLC's legal existence because a filing or fee was missed, most often the annual report. In many states you can reinstate.Do it with usReinstate your LLCWhat a missed report does
- Amendment
- A filing that changes something on your public formation record, such as the company name, the management style or the address of record.Do it with usFile an amendmentHow amending works
- Annual report
- A routine filing that keeps your contact details and agent current with the state. Due dates and fees vary by state, and a few states ask for it less than yearly.Do it with usFind your due dateDeadlines in every state
- Articles of dissolution
- The filing that formally closes an LLC with the state. Check your state's extra steps before you file.Do it with usDissolve your LLC
- Articles of organization
- The document that creates an LLC once the state accepts it. Some states call it a certificate of formation or certificate of organization.Do it with usStart a formation
B
- Beneficial ownership (BOI) report
- FinCEN's final rule, effective August 14, 2026, ended this report for U.S.-formed companies. Only foreign reporting companies still file, and only for their non-U.S. owners. A "final notice" asking you to pay for a filing is a solicitation.Read moreThe final rule, plainlyCheck a letter
- Biennial statement
- A contact and address report that some states, New York among them, ask for every two years instead of every year.Read moreNew York biennial statement
C
- C corporation
- A corporation that pays its own income tax, and its owners pay tax again on the dividends it sends them. It is the default tax treatment for a corporation.Read moreWhy lenders look at C corps
- Certificate of authority
- The approval a second state gives your out-of-state LLC to do business there. Some states use a different name for it.Do it with usRegister in a second state
- Certificate of good standing
- A state-issued document stating that your entity is active and current on its filings. Banks and other states often ask for one.Do it with usOrder one by stateWhat it proves
- Change of registered agent
- The filing that tells the state a new agent has taken over. Until it is accepted, legal papers still go to the old one.Do it with usChange your agentHow switching works
D
- DBA
- A name you operate under that differs from your legal name. Your state or county may call it an assumed name or fictitious name, and it does not create a separate company.Do it with usRegister a DBAHow DBAs work
- Disregarded entity
- The IRS default for a single-member LLC: the company is ignored for income tax and the owner reports its profit on their own return.Read moreHow the IRS classifies an LLC
- Dissolution
- The legal end of a company. You can choose it, or the state can impose it when filings are missed.Read moreWhen to dissolveDissolve by state
- DUNS number
- A business identifier issued by Dun & Bradstreet. It is separate from your EIN, and only some lenders and buyers ask for it.Read moreDUNS vs EINThe DUNS guide
E
- EIN
- Employer Identification Number: the IRS number that identifies your business for taxes, hiring and most business bank accounts.Do it with usGet it in the Day-One BundleFind an EIN you already have
F
- Foreign LLC
- An LLC seen from a state other than the one that formed it. "Foreign" here means another state, not another country.Do it with usRegister by state
- Foreign qualification
- Registering your LLC in a second state so it can do business there legally. It is separate from forming a new company.Do it with usStart foreign qualification
- Forfeited existence
- What some states, Texas among them, call losing your right to operate after unpaid taxes or missed reports. The fix is usually to file what is overdue and then reinstate.Read moreTexas forfeiture and reinstatement
- Form 2553
- The IRS form an LLC or corporation files to be taxed as an S corporation. It has a deadline, and late-election relief exists.Read moreThe S-corp election deadline
- Form 8832
- The IRS form an LLC files to choose a different tax classification than its default, such as taxation as a corporation.Read moreHow the IRS classifies an LLC
- Form 990-N
- The short annual e-Postcard that small tax-exempt organizations file with the IRS. Skipping it three years in a row revokes the exemption.Do it with usGet a deadline reminderFiling it late
- Franchise tax
- A tax some states charge for having an entity registered there, separate from income tax. It is not only for franchises.Read moreAnnual report vs franchise tax
G
- Good standing
- Your entity is current with the state: filings made, fees paid and an agent on file. Banks and other states often ask you to prove it.Do it with usTrack every deadlineThe compliance checklist
H
- Holding company
- A company whose main job is to own other companies or assets. Each entity underneath it still has its own deadlines.Do it with usSee every entity on one board
I
- ITIN
- A tax number the IRS issues to people who must file but cannot get a Social Security number.Read moreGetting an EIN without an SSNLLCs for non-U.S. residents
L
- Legal name change
- Changing your company's registered name means amending its formation record, then updating the bank, the IRS and your licenses.Do it with usChange your LLC name
- Limited liability
- The idea behind an LLC: business debts and claims generally stop at the company's assets instead of reaching the owner's savings and home.Read moreLLC vs sole proprietor
- LLC
- A limited liability company: a business entity registered with a state that separates the company's debts from its owners' personal assets.Do it with usStart an LLCThe formation guide
M
- Manager-managed LLC
- An LLC where the owners name one or more managers to run the business. A manager can be an owner or an outsider.Read moreWhy the operating agreement matters
- Member
- An owner of an LLC. A member's share of the company is called a membership interest.Read moreRoles in the operating agreement
- Member-managed LLC
- An LLC where every owner can act for the company and sign for it. It is the usual setup for a small LLC with a few owners.Read moreWhy the operating agreement matters
- Multi-member LLC
- An LLC with two or more owners. The IRS treats it as a partnership unless it elects otherwise.Read moreHow the IRS classifies an LLC
N
- Name availability
- Whether a state will accept your company name, meaning it differs enough from names already on its records. It does not clear the name as a trademark.Do it with usCheck a nameWhy it is not a trademark search
- Nexus
- A link between your business and a state, such as an office, staff or enough sales, that can require you to register and collect or pay tax there.Do it with usCheck where you have nexus
- Nonprofit (501(c)(3))
- An organization the IRS recognizes as exempt from federal income tax under section 501(c)(3). The exemption can be revoked if required filings are skipped.Do it with usReinstate an exemption501(c)(3) vs 508(c)(1)(a)
O
- Operating agreement
- The owners' internal contract: who owns what, who decides, how money is shared and what happens when someone leaves.Read moreDo you need one?
P
- Partnership (tax)
- How the IRS taxes an LLC with two or more owners by default: the company files an information return and the owners pay the tax.Read moreHow the IRS classifies an LLC
- Pass-through taxation
- Business profit is taxed on the owners' personal returns, with no separate income tax paid by the company.Read moreHow the IRS classifies an LLC
- PLLC
- A professional LLC, for licensed fields such as law or medicine in states that require one. Your licensing board decides which entity types it accepts.Read moreWhich structure your profession needs
- Publication requirement
- A rule in some states, New York among them, that a new LLC announce itself in newspapers after it forms. Skipping it can suspend the right to do business there.Read moreNew York's rule, step by step
R
- Registered agent
- A person or company with a physical address in the state who receives lawsuits and official mail for your LLC.Do it with usAdd a registered agentWhat an agent does
- Registered agent resignation
- What happens when your agent quits and files that with the state. You will need to name a new agent.Read moreWhat to do next
- Registered office
- The physical street address in the state where your registered agent accepts papers and official mail.Read moreWhat each state requires
- Reinstatement
- Getting a dissolved or revoked entity back to active status by filing what is overdue and paying what the state asks.Do it with usReinstate your LLCA Florida example
S
- Sales tax permit
- Your state's registration that lets you collect sales tax from customers. Check your state's rules before you make a sale.Do it with usRegister for sales taxBy state
- S-corp election
- A tax status, not a type of company. An LLC or corporation elects to be taxed as an S corporation using Form 2553.Read moreThe election deadline
- Self-employment tax
- The Social Security and Medicare tax that owners who work in their own business pay on their earnings.Read moreHow the IRS classifies an LLC
- Series LLC
- An LLC that splits its assets into separate series, available only in some states. Whether it fits is a question for your attorney and CPA.Read moreOne LLC, several, or a series
- Service of process
- The formal delivery of a lawsuit or legal notice. For an LLC it usually goes to the registered agent, and papers sent to a dead address can end in a default judgment.Read moreWhy the address matters
- Single-member LLC
- An LLC with one owner. It still files with the state like any LLC, and the IRS treats it as a disregarded entity by default.Read moreDoes it need an EIN?
- Sole proprietorship
- A business that is the owner, with no separate legal entity. Personal assets can be reached by business claims.Read moreLLC vs sole proprietor
- Statutory agent
- Another name for a registered agent, used in some states.Read moreWhat an agent does
T
- Trademark
- A name, logo or phrase that identifies your goods or services, registered at the state, the USPTO or both. Registering an LLC name does not register a trademark.Read moreSearch a trademark
- Trust
- A legal arrangement in which a trustee holds assets for the benefit of others. Some owners hold an LLC inside a trust.Do it with usCompare a trust and an LLCPrivate trusts
W
- W-9
- The IRS form where a payee gives a business their name and tax number so the business can report payments to them.Do it with usCollect W-9s
- Withdrawal
- Formally ending your out-of-state LLC's registration in a state where you no longer do business.Do it with usWithdraw by state
Definitions are general and educational. Rules and fees differ by state, and Vermilion Vitez is a filing-services company, not a law firm. For legal or tax advice, talk to a licensed attorney or CPA.
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Is this glossary legal or tax advice?
No. It explains common terms in plain words so you can follow a state form or an IRS notice. State rules differ, so check your state's official page or ask a licensed attorney or CPA before you act.
Why does one term have more than one name?
States name the same thing differently. An assumed name in one state is a fictitious name in another, and a registered agent is a statutory agent in some. Search by either name and the entry will show up.
What do “Do it with us” and “Read more” mean?
“Do it with us” links to a tool or filing on this site that handles the task. “Read more” links to a guide that explains it in depth. Both are on vermilionvitez.com.
Can I suggest a term to add?
Yes. Call or text (888) 419-0771 and tell Vitez, our AI assistant, which term tripped you up.
Sources checked November 5, 2026
- Vermilion Vitez, Compliance Desk guides (tax, agent, reinstatement and dissolution entries)
- Vermilion Vitez, BOI reporting final rule (beneficial ownership entry)
- Vermilion Vitez, registered agent by state (registered office entry)
- Vermilion Vitez, how to start an LLC in New York (publication requirement entry)
- Vermilion Vitez, filing the 990-N late (Form 990-N entry)
Each entry's linked page holds the sources behind it. Educational, not legal advice.