Menu X Menu
How may we help you?


Learning Center
Companies Served Since 1981
1 7 3 4 9 4
    • My Promise To You

      Harvard Business Services, Inc. specializes in forming Delaware companies and providing low-cost Registered Agent services. We take pride in delivering fast, impressive service to all our customers. Our experienced and knowledgeable staff will guide you through our seamless formation process. Whether you're forming your first company or your fifth, you'll appreciate our professionalism, low prices and lifetime customer service. We are always here for you; if you need help, just let us know and our friendly, professional staff will assist you. Harvard Business Services, Inc. makes the business formation process easy, so you can focus on growing your company.

      Richard H. (Rick) Bell, II
      Chairman & CEO

  • Read Our Reviews
  • Privacy and Security

    Your data is kept confidential and is not released to third parties.

    Your personal information is encrypted by Secure Sockets Layer (SSL) software so that it cannot be read as the information travels over the Internet.

    • Like our service? If you are one of our many satisfied customers, please give us a BBB review.

      McAfee SECURE sites help keep you safe from identity theft, credit card fraud, spyware, spam, viruses and online scams
  • Share With Your Friends



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.

A | B | C | D | E | F | G | H | I | L | M | N | O | P | Q | R | S | T | U | V | Z

Paid in Capital -Shares that were acquired through the payment of actual consideration.

Par Value -The stated minimum value of a Corporation’s stock.

Partly Paid Shares -Delaware allows a Corporation to issue shares for less than the full consideration, with the balance due and callable by the board of directors at some future time.

Partnership -An informal association of two or more individuals normally created by a private partnership agreement. There is no limited liability afforded to the partners, although the partnership agreement can provide indemnification rights to all or some of the partners.

Partnership Agreement -A private agreement between partners that establishes a partnership and governs the terms and conditions of the partnership relationship.

Pass-Through Taxation -All income and profits are passed through the entity to the owner and this income is only taxed one time. LLCs and S Corporations provide this tax benefit to their owners.

Passive Income -Income generated from the licensing of intangible assets, like intellectual property.

Passive Income Assets -Intellectual property, e.g., trademarks, patents, copyrights, royalties.

Pierce the Corporate Veil -The act in which creditors are able to attack the personal assets of a Corporation’s owners due to the Corporation not conducting business as an entity separate from its owners, e.g., commingled funds, no or incomplete corporate records, unpaid franchise taxes or registered agents.

Preferred Stock -A special class of stock whose holders get paid dividends or asset distributions before common stock holders. An excellent way to attract investors, and also maintain control of the daily operations since preferred stock holders are normally denied voting rights.

Principal Place of Business -The actual, physical location wherein a company conducts the greatest portion of its business. Not the same as Registered Office.

Private Corporation -A Corporation whose shares are not publicly traded on any exchange.

Professional Corporation -A Corporation owned by licensed professionals in a given field whose sole purpose is to conduct business in that field.

Proxy -The granting of a shareholder’s voting rights to another party to vote on that shareholder’s behalf because the shareholder is not able to attend a meeting. Delaware allows for electronic proxies.

Public Corporation -A Corporation that trades its stock on a public stock exchange like the New York Stock Exchange or NASDAQ. Regulated by the Securities and Exchange Commission.

A | B | C | D | E | F | G | H | I | L | M | N | O | P | Q | R | S | T | U | V | Z

Secure Connection
X Secure & Confidential

Your personal information is encrypted by Secure Sockets Layer (SSL) software so that it cannot be read as the information travels over the Internet.

X Our customers love us!
We have lots of great customer reviews.
Like our service? If you are one of our many satisfied customers, please let us know.
BBB A+ Rating
X A+ Rated BBB Accredited Business

Need more proof that we're the best? Check out our record!

100,000+ Companies Formed

Companies Formed Since 1981

Disclaimer: Harvard Business Services, Inc. is a document filing service that provides general information. We cannot render legal or financial advice and your use of this site is subject to additional terms and conditions. HBS is not affiliated with Harvard University.

© Copyright 1996-2017. All rights reserved.