Glossary
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Term
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Description
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| Aggregate par value |
The par value multiplied by the number of authorized shares. The amount is important in determining initial fees and annual franchise taxes in many states. |
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| Annual meeting of shareholders |
Nearly all states require a corporation to hold an annual meeting of shareholders, where directors are elected and shareholders vote on other corporate issues. |
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| Annual report |
A mandatory annual state filing, usually requiring information on the company’s directors (for corporations), members or managers (for LLCs) and financial status. A return can also refer to an annual statement of business and affairs furnished by a corporation to its shareholders. |
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| Apostille |
A method of certifying a document for use in another country so it is recognized in the country of intended use, and no additional certification or legalization by the embassy or consulate of the foreign country is required. An apostillized copy of the articles of incorporation or articles of organization is often needed to open a bank account in another country for a US incorporated business. Note: some countries require a certified copy of the articles of incorporation or organization with an appropriate gold seal instead of an apostillized copy. |
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| Articles of incorporation |
The document that must be filed with the appropriate state agency in order to create a corporation. Includes basic information about the corporation as required by state law. Also sometimes called a certificate of incorporation. |
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| Articles of organization |
The document that must be filed with the appropriate state agency in order to create a limited liability company (LLC). Includes basic information about the LLC as required by state law. Also sometimes called a certificate of incorporation. |
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| Asset |
Anything with commercial or exchange value that is owned by a business, government, institution, or individual (e.g. stocks, bonds, real estate, equipment, a brand name or the value of a company as an operating business). |
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| Assumed name |
The name other than the legal name that a company uses to conduct business. Assumed names (also called a fictitious business name, doing business as or DBA) can be filed at the city, county or state level depending on state requirements. A company can typically use multiple assumed names. |
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| Authorized shares of stock |
Total number of shares a corporation is authorized to issue, as specified in the articles of incorporation. All authorized shares need not be issued to shareholders. The corporation can have unissued shares that can be distributed later. |
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| Board of directors |
The governing body of a corporation. Directors, who are elected by shareholders, are responsible for the primary decisions of a corporation. The directors appoint officers who handle the day to day operations of the corporation. |
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