Glossary Terms

A | B | C | D | E | F | G | H | I | L | M | N | O | P | Q | R | S | T | U | V
Cancellation

The act of formally dissolving an existing LLC entity that no longer intends to conduct business.

Certificate of Authority

A document filed with the Secretary of State that officially authorizes an entity formed in another jurisdiction to conduct business in the state where the Certificate was filed.

Certificate of Correction

A filing with the Secretary of State that corrects a clerical error in a previously filed document.

Certificate of Existence

Official document issued by the Secretary of State that confirms an entity is in good standing with the state, i.e., franchise taxes are current, registered agent appointed, etc. This is also called a Certificate of Good Standing

Certificate of Formation

A document filed with the Secretary of State that officially creates an LLC in Delaware.

Certificate of Good Standing

Official document issued by the Secretary of State that confirms an entity is in good standing with the state, i.e., franchise taxes are current, registered agent appointed, etc. To order a Certificate of Good Standing, please click here.

Chancery Court

Specialized court in Delaware staffed by judges who are experts in business and commercial transactions. This court specializes in business cases, and has established a 200 year history of case law precedents protecting the rights of business owners.

Common Law Trust

A trust created pursuant to and governed by English Common Law precedents. Normally, a grantor of assets into a common law trust cannot maintain control over those assets without those assets still being considered a part of the grantor’s estate and subject to attachment.

Consideration

What someone pays to someone else in exchange for receiving something in return.

Consolidation

The act of joining two separate and distinct existing entities into one new entity. Normally authorized by resolution and achieved by executing an Agreement of Consolidation between the parties involved. A Certificate of Formation is required for the new LLC entity.

Contract

A private agreement entered into by two or more parties, and supported by valid consideration, wherein the parties agree to adhere to certain terms and conditions for an established period of time, or indefinitely.

Contribution

Money, services rendered, or other consideration paid to an entity in exchange for ownership in that entity.

Corporate Veil

A shield of limited liability afforded to Corporations and LLCs that maintain their corporate compliance. Creditors cannot proceed against owners’ personal assets.

 

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Disclaimer

Harvard Business Services, Inc. is a document filing service that provides general information. We can not render legal or financial advice and your use of this site is subject to additional terms and conditions. HBS is not affiliated with Harvard University.