LLC — limited liability company
A business entity formed under state law. Its owners are members. The entity form and its federal tax classification are separate questions.
Explore this topicClearer terms. Better questions.
Business formation glossary: understand the terms before you file
This glossary explains LLC, EIN, registered agent and other business terms in plain language. Use each definition to understand your next step, then explore the FormLLC service or guide that fits your company.
Key takeaways
- An LLC and its federal tax classification are separate questions
- An EIN is an IRS tax identifier; it does not create your company
- FormLLC plans start at $399 in Wyoming, state fee included
- Rated 4.7/5 on Trustpilot and 4.8/5 on Fiverr
- 5,000+ founders served
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Browse by topic
What do common LLC and business compliance terms mean?
Find the meaning, then follow the link for the process. These explanations are starting points; the controlling state, agency or agreement may use a more specific definition.
Terms explained
Entity and ownership
Corporation
A state-law entity with ownership generally represented by shares. Directors and officers have distinct governance roles; formation and tax elections are separate steps.
Explore this topicMember
An owner of an LLC. The operating agreement and applicable law help determine management, voting, distributions and transfer rights.
Explore this topicOperating agreement
An LLC agreement addressing ownership and how the company is managed. A template may need changes for multiple owners, investors or unusual arrangements.
Explore this topicCorporate bylaws
Rules for a corporation’s internal governance, including meetings and decision-making. Bylaws do not replace formation documents or shareholder agreements.
Explore this topicS corporation status
A federal tax election available to eligible entities. It is not a blanket label for every small corporation or a guarantee of lower tax.
Explore this topicTerms explained
Names, filings and representation
DBA — doing business as
A business name used in place of the legal owner’s or entity’s name, also called an assumed or fictitious name in some jurisdictions. A DBA filing does not itself create an LLC.
Explore this topicRegistered agent
The designated recipient for service of process and certain official notices. Agent coverage does not automatically include general mail forwarding or a business office.
Explore this topicDomestic entity
An entity in the jurisdiction where it was formed. The same company may be treated as foreign when registering to operate in another jurisdiction.
Explore this topicForeign qualification
Registration of an existing entity to conduct business in another jurisdiction when required. “Foreign” in this context does not necessarily describe the owner’s nationality.
Explore this topicArticles of organization
The state formation document for an LLC, sometimes given another name. Required information and filing terminology depend on the state.
Explore this topicAmendment
A filing used to change specified information in an entity’s state record. Some changes also need updates to agreements, licenses, tax accounts or other records.
Explore this topicTerms explained
Tax IDs, recurring filings and closure
EIN — employer identification number
A federal tax identification number issued by the IRS. It identifies the business for relevant tax administration; it is not a state formation approval or bank-account approval.
Explore this topicAnnual report
A recurring state entity-information filing. Despite the name, the cycle may be annual, biennial or otherwise state-specific, and it is separate from a federal income tax return.
Explore this topicFranchise tax
A state tax or charge associated with doing business or an entity’s status, depending on that state’s law. Its basis and filing requirements vary.
Explore this topicGood standing
A status or certificate tied to specified requirements of the issuing jurisdiction. It does not certify that every tax, license or contractual duty has been satisfied.
Explore this topicTax nexus
A connection that can create obligations in a taxing jurisdiction. Physical presence and economic activity can matter; formation state alone does not settle the question.
Explore this topicBusiness license
Government permission for a particular activity or location. Forming an entity does not automatically authorize regulated work.
Explore this topicReinstatement
A process to restore an entity after certain administrative status problems. Eligibility, overdue filings, charges and related tax work depend on the jurisdiction.
Explore this topicDissolution
The legal process of ending an entity, alongside any required winding-up work. Final tax returns, accounts, contracts and registrations may require separate action.
Explore this topicA clearer next step
How can a definition help you choose your next step?
If a filing notice or application uses a term you do not recognize, note the exact wording, entity type and state. FormLLC can help identify the relevant service and explain what the proposed work includes before you authorize it.
Questions answered
What do founders ask about business terms?
Answers to help you continue with the right context.
Is an LLC the same thing as a business license?
No. An LLC is a state-law entity. Licenses and permits concern activities and locations and may still be needed after formation.
Does getting an EIN create my company?
No. An EIN is an IRS tax identifier. State formation and an EIN application are separate steps; the IRS directs applicants creating a legal entity to form it first.
Does a foreign LLC mean a foreign-owned LLC?
Not necessarily. In state registration, foreign commonly means formed outside that jurisdiction. Ownership residence is a separate fact.
Are annual reports and income tax returns the same filing?
No. State entity reports and federal or state tax returns have different purposes, rules and due dates. A company may need both.
Can I use these definitions as legal or tax advice?
These are general explanations for preparation. Use the applicable law, agency instructions and qualified advice when a filing, deadline or decision depends on the meaning.
Can FormLLC help with a service mentioned in the glossary?
Follow the related service link or contact FormLLC with the term, entity type and state. The written quote confirms the work, fees and any separate professional review.
From information to action
Know the term. Take a clearer next step.
Tell FormLLC what you are trying to file or resolve, and get help choosing the relevant service.
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