Glossary

If you're getting ready to launch a new business, chances are you know your product or service and your market like the back of your hand. But the mechanics of forming a business entity-knowing the terminology-may be more difficult to understand.

To help you sort through the terminology, Harvard Business Services, Inc. has included a comprehensive glossary to help guide you. To use the glossary, match the first letter of the term you want to look up with the alphabet list below, and click on that letter.

Of course, our team of business formation professionals is standing by to help you make informed decisions if you need more information

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L-1 Visa

A U.S. visa granted to a nonresident alien employee whose company has offices in the U.S. and the company wishes to transfer this employee to work at the U.S. location.

 

Limited Liability

The liability of an owner of a Corporation, LLC, or Statutory Trust for the business debts of the entity is limited to the owner’s investment in the entity. Owners’ personal assets are protected.

 

Limited Liability Company

An entity that provides owners with limited liability and pass-through taxation benefits. Governed by a private, flexible contract called an Operating Agreement. Owned by Members with membership certificates.

 

Limited Liability Limited Partnership

A new combination of LPs and LLPs. The general partners are afforded limited liability protection, in addition to the limited partners.

 

Limited Liability Partnership

A general partnership that affords limited liability protection to its partners. Normally used by professional firms.

 

Limited Partner

An investor in an LP or LLP who is not involved in the management of the partnership. Liability is limited to the amount of the investment.

 

Limited Partnership

An entity composed of general and limited partners. General partners own and manage the company, so their liability exposure is widespread. Limited partners are only investors, not managers, so their liability is limited to their investment.

 

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