Managing your Business Flashcards
What is an amendment?
An amendment is a change to the Articles of Incorporation or Organization made by adding, altering, or omitting a certain part or term. The following are examples of reasons one may amend their document.
- Changing the business name
- Adding/Removing a member
- Change business address
If the information is not on the approved articles or the Secretary of state’s website is an amendment needed? Ex. business address change & adding/removing member
No, an amendment is not required. The customer would just make an internal update. (on the statement of the organizer or bylawys/operating agreement)
What is a dissolution?
A dissolution is a process of closing a Limited Liability Company or Corporation.
What is a certificate of good standing?
A Certificate of Good Standing (also called a Certificate of Status, a Certificate of Existence, or a Certificate of Fact) provides evidence that a client’s company has submitted all required reports and paid all required fees to the state.
When might you need a certificate of good standing?
If you plan on foreign qualifying
What is a foreign qualification?
Foreign qualification is the formal process required to legally incorporate your business to conduct itself in a state other than the one in which it originally registered. As such, a company is only domestic to the state with which it filed its initial registration documents and foreign in any others. An organization cannot typically transact business in a “foreign” state until it has gone through the official foreign qualification process.
What is a conversion?
A conversion is a process of converting a Limited Liability Company into a Corporation or vice versa. It can be a rather complex ordeal. Some states do not allow conversions, others want a merger instead.
Can you convert a DBA to an LLC?
NO!! You can only convert from an LLC to a Corp or vice versa
Can you convert an LLC to a Nonprofit or vice versa?
NO!! You can only convert from an LLC to a Corp or vice versa
