Skip to content
Sign up
Login

Business Registration and compliance Glossary: 90+ Terms and Definitions You Need to Know

Confused with all the business registration and compliance-related terms and buzzwords you encounter on a daily basis? Here is a glossary with over 90+ definitions to help

  • Company registration – The process of officially creating a new business entity with the government.
  • Compliance – The act of adhering to laws, regulations, and industry standards that govern a particular business activity.
  • Founders – The individuals who start and launch a new business venture.
  • Entrepreneurs – People who start and run businesses with the aim of making a profit.
  • Business owners – People who own and operate a business.
  • Emerging markets – Countries or regions that are experiencing rapid economic growth and development.
  • Paperwork – The documentation required by law or regulation to establish and operate a business.
  • Complexity – The degree of difficulty and intricacy involved in a particular process.
  • Hidden fees – Charges or costs that are not disclosed upfront and may come as a surprise to the customer.
  • Incorporation – The legal process of forming a corporation, which is a separate legal entity from its owners.
  • LLC – Limited Liability Company. A business structure that combines the liability protection of a corporation with the tax benefits of a partnership.
  • EIN – Employer Identification Number. A unique nine-digit number is assigned by the IRS to identify businesses for tax purposes.
  • Articles of Incorporation – Legal documents that establish a corporation and outline its purpose, structure, and ownership.
  • Bylaws – The rules and regulations that govern the operation of a corporation.
  • Annual report – A document that provides a summary of a company’s financial performance and operations over the past year.
  • Registered Agent – A person or company designated to receive legal and tax documents on behalf of a business.
  • Secretary of State – The government official responsible for overseeing business registration and compliance in a particular state.
  • S-Corporation – A type of corporation that allows for pass-through taxation and is limited to 100 shareholders.
  • C-Corporation – A type of corporation that is taxed separately from its owners and has no limit on the number of shareholders.
  • Sole proprietorship – A type of business in which an individual owns and operates the company, with no legal distinction between the owner and the business.
  • Partnership – A type of business structure in which two or more individuals share ownership and responsibility for the company.
  • DBA – “Doing Business As.” A legal term is used when a business operates under a name that is different from its legal name.
  • Certificate of Incorporation – A legal document issued by the state government to confirm that a corporation has been formed and is authorized to operate.
  • Tax ID – A unique identification number used by the IRS to track and regulate businesses’ tax obligations.
  • Compliance checklist – A tool used to ensure that a business is meeting all legal and regulatory requirements.
  • Compliance officer – A person within a company responsible for ensuring that the business complies with all relevant laws and regulations.
  • Annual meeting – A gathering of a corporation’s shareholders, usually held once a year, to discuss business matters and vote on important decisions.
  • Minutes – The official record of a corporation’s meeting, including discussions and decisions made.
  • Resolutions – Formal decisions made by a corporation’s board of directors or shareholders.
  • Shareholder – A person who owns shares of a corporation and is entitled to a portion of the company’s profits.
  • Board of Directors – A group of individuals elected by the shareholders to oversee the management of a corporation.
  • Articles of organization – Legal documents required to establish a limited liability company (LLC).
  • Operating Agreement – A document that outlines the management structure, ownership, and operating procedures of an LLC.
  • Registered office – The physical location where a business is legally required to receive official documents and notices.
  • Foreign qualification – The process of registering a company to do business in a state where it is not incorporated.
  • Franchise tax – A tax levied on businesses for the privilege of operating in a particular state.
  • Sales tax – A tax levied on the sale of goods and services.
  • Employment tax – Taxes paid by employers to fund programs such as Social Security and Medicare.
  • Excise tax – A tax levied on specific goods and services, such as alcohol or tobacco.
  • Income tax – A tax levied on a business’s profits.
  • Form 1099 – A tax form used to report income earned by independent contractors or freelancers.
  • Form W-2 – A tax form used to report wages paid to employees.
  • Business license – A permit required by some states and localities to operate a business.
  • Trademark – A symbol, word, or phrase used to identify and distinguish a company’s products or services from those of others.
  • Copyright – The legal protection of an original work, such as a book or song.
  • Patent – A legal protection for a new invention or process.
  • Intellectual property – The ownership rights to original creations of the mind, such as inventions, artistic works, and trade secrets.
  • Non-disclosure agreement – A legal contract that prohibits parties from disclosing confidential information.
  • Terms of service – The rules and guidelines that govern a business’s relationship with its customers.
  • Privacy policy – A statement that explains how a business collects, uses, and protects customer data.
  • Data protection – The process of safeguarding personal information from unauthorized access or use.
  • Compliance audit – An evaluation of a business’s compliance with legal and regulatory requirements.
  • Compliance risk – The risk of legal or financial penalties associated with non-compliance.
  • Compliance framework – A system or set of procedures used to ensure compliance with laws and regulations.
  • Due diligence – The process of investigating a company’s financial and legal
  • CAC – Customer Acquisition Cost. The cost of acquiring a new customer, including all marketing and sales expenses.
  • Cap table – A document that outlines the ownership structure of a company, including information on shareholders, equity ownership, and investment rounds.
  • Vesting – A process by which employees earn ownership of company shares over time, often as an incentive to stay with the company.
  • Trademark – A symbol, word, or phrase used to identify and distinguish a company’s products or services from those of others.
  • Intellectual property – The ownership rights to original creations of the mind, such as inventions, artistic works, and trade secrets.
  • Patent – A legal protection for a new invention or process.
  • Copyright – The legal protection of an original work, such as a book or song.
  • Trade secret – Confidential information, such as a formula or process, that provides a competitive advantage and is not generally known to the public.
  • Non-compete agreement – A legal contract that prohibits an employee from working for a competitor for a certain period of time after leaving a company.
  • Non-disclosure agreement – A legal contract that prohibits parties from disclosing confidential information.
  • Terms of service – The rules and guidelines that govern a business’s relationship with its customers.
  • Privacy policy – A statement that explains how a business collects, uses, and protects customer data.
  • Data protection – The process of safeguarding personal information from unauthorized access or use.
  • Compliance audit – An evaluation of a business’s compliance with legal and regulatory requirements.
  • Compliance risk – The risk of legal or financial penalties associated with non-compliance.
  • Compliance framework – A system or set of procedures used to ensure compliance with laws and regulations.
  • Due diligence – The process of investigating a company’s financial and legal position before entering into a business transaction, such as an acquisition or investment.
  • IPO – Initial Public Offering. The process of selling shares of a private company to the public for the first time.
  • Secondary offering – The sale of additional shares of a publicly-traded company by existing shareholders.
  • Underwriting – The process of evaluating and assuming the financial risk of an IPO or other securities offering.
  • Blue Sky laws – State securities laws that regulate the sale of securities to protect investors from fraudulent or risky investments.
  • Securities and Exchange Commission (SEC) – A federal agency that regulates securities markets and enforces securities laws.
  • 10-K – An annual report filed by publicly-traded companies with the SEC, containing detailed financial information and other disclosures.
  • 10-Q – A quarterly report filed by publicly-traded companies with the SEC, containing financial information and other disclosures.
  • S-1 – The registration statement filed with the SEC by a company preparing for an IPO, containing detailed information about the company’s financial position and operations.
  • Quiet period – The period of time before and after an IPO during which a company and its insiders are restricted from making public statements about the company’s financial prospects.
  • Proxy statement – A document filed with the SEC that provides information to shareholders about matters to be voted on at a shareholder meeting.
  • Annual meeting – A gathering of a corporation’s shareholders, usually held once a year, to discuss business matters and vote on important decisions.
  • Minutes – The official record of a corporation’s meeting, including discussions and decisions made.
  • Resolutions – Formal decisions made by a corporation’s board of directors or shareholders.
  • Shareholder – A person who owns shares of a corporation and is entitled to a portion of the company’s profits.
  • Board of directors – A group of individuals elected by the shareholders to oversee the management of a corporation.
  • Business name – The name under which a business operates and is legally registered.
  • Tax clearance – A certificate issued by the government that confirms a business has met its tax obligations and is in good standing.
  • Business permit – A legal document that allows a business to operate in a specific location, subject to certain conditions and regulations.
  • Business license – A legal document that grants permission to a business to operate in a specific industry or sector, subject to certain regulations and requirements.
  • Business registration – The process of legally registering a business with the government, including obtaining necessary permits and licenses.
  • Employer Identification Number (EIN) – A unique nine-digit number issued by the IRS that identifies a business for tax purposes.
  • Sales tax – A tax on the sale of goods and services, collected by the government.
  • Value-added tax (VAT) – A tax on the value added at each stage of production or distribution of a good or service, collected by the government.
  • Payroll taxes – Taxes paid by employers and employees on wages and salaries, including Social Security and Medicare taxes.
  • Excise tax – A tax on specific goods, such as gasoline or tobacco, collected by the government.
  • Property tax – A tax on the value of the property, such as real estate, collected by the government.
Sign up here