Glossary Terms

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The Incorporation State

Delaware Court of Chancery

See Chancery Court

Delaware Limited Liability Company Act (DLLCA)

The leading body of law governing LLCs formed in Delaware

Delaware: Better Than Offshore

This is a protected mark of Harvard Business Services, Inc. that refers to Delaware's status as an Offshore Financial Centre. Better refers to the fact that Delaware and the U.S. government does not require the entity or its registered agent to disclose who holds beneficial interests in the entities formed here.


Individuals elected to manage the affairs of a Corporation. Sometimes, LLCs choose in their Operating Agreements to have directors, but usually LLCs are managed either by the Members or by one or more Managers.


The transfer of money or other property from an LLC to one or more Members.

Doing Business As (DBA)

The act of conducting business under a trade name that is different than the official or true name of the LLC.


The act of changing the home state of an entity from one jurisdiction to another, preserving the original date of formation.

Double Taxation

The taxation of corporate earnings at the corporate level and again at the shareholder level. A Corporation pays income tax on its annual profits. Then, if it issues a dividend to shareholders, these shareholders must pay taxes on this income again on their separate returns. Double taxation is eliminated with an LLC.


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