Glossary of most frequent business formation terms

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

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Name registration

Name Reservation

Net Worth

No par value shares

Not-For-Profit Corporation

Numbered Corporation

 

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Name registration

The filing of a document in a foreign state to protect the corporate name, often in anticipation of qualification in the state.

 

Name Reservation

A procedure that allows a corporation or Limited Liability Company to obtain exclusive use of its business name for a specified period of time. The name of a corporation or LLC must be different from previous names on record at the state government. If the name is not unique, the state will reject the articles of incorporation or articles of organization (for LLC). A name can be reserved, usually for 120 days, by applying with the proper state authorities and paying a fee.

 

Net Worth

Total assets (common stock, surplus, and retained earnings) minus total liabilities of an individual or company. Also called Owner's Equity or Shareholders' Equity or Net Assets.

 

No par value shares

A share that no par value given in the charter or stock certificate and that may be issued for consideration designated by the board of directors. Note that the value of no par shares is determined by the state for franchise tax purposes and may result in higher franchise taxes in comparison with low par-value stock.

 

Not-For-Profit Corporation

An organization incorporated for educational, humanitarian or charitable reasons that is exempt from some taxes, and in which its shareholders or trustees do not benefit financially. Also called Non Profit Organization.

 

Numbered Corporation

A corporation, which uses a number rather than a distinct corporate name.  A numbered company's corporate number is assigned to it by the jurisdiction of incorporation.  Many corporations have numbered names where using a distinct corporate name is not important.