Glossary of Corporate Terms

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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An individual or entity chosen by the Members of an LLC to manage the daily operations of the LLC. A Manager can be, but does not have to be, a Member.


Managing Company

A separate company from the Operating Company that manages the assets of the Operating Company in return for a management fee.


Managing Member

A Member of an LLC that also serves as a Manager of the daily operations.



An owner of an LLC; can be an individual or an entity.


Membership Certificate

Evidence of ownership or Membership Interest in an LLC provided to its Members.


Membership Interest

Ownership in an LLC.



The act of joining two separate, existing companies into one, surviving company that will conduct business into the future. The non-surviving company disappears.


Minimum Tax

A corporation with 5,000 authorized shares or less is considered a minimum stock corporation. The annual report fee is $50 and the tax is $175 for a total of $225 per year.  A corporation with 5,001 authorized shares or more is considered a maximum stock corporation. The annual report fee is $50 and the tax would be somewhere between $200 and $200,000 per year.



A record of the actions taken during a meeting of a Corporation’s board of directors or shareholders, normally maintained in the Corporate Record Book.


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