⏱ Elapsed: 0:00Accessibility-firstDocuAid by OevaeBusiness Document DictionaryFile Texas Assumed Name

DocuAid Glossary – Make Small Business Easy.

Plain-English definitions for filing and records terms. Instant search, A–Z filter, Spanish toggle, “… more” details, and printable PDFs.

Assumed Name (DBA)

A name you use for business that is not your legal name. Banks may ask for a certified copy of your DBA to open a business account.

Certified Copy

An official copy stamped by the Clerk to prove it is true and correct.

Clerk (County Clerk)

The county office that records documents and keeps public records.

Courier / Runner

A person who delivers or files documents at an office for you.

Entity

Your business structure, like LLC, corporation, or sole proprietorship.

ID (Identification)

A government-issued card or document that proves who you are.

LLC

Limited Liability Company. A common type of business entity.

Notary

A person authorized by the state to witness signatures.

Remote Online Notarization (RON)

Getting a document notarized online by video meeting.

Recording

The process of making a document part of the official public record.

Sole Proprietor

A business owned by one person who is personally responsible for the business.

Trademark

A word or symbol that shows your brand and helps protect it.

Authorization

Written permission allowing someone else to act for you.

Apostille

A certification for documents used in other countries.

Certified Mail

A postal service that gives you proof the mail was sent and received.

Affidavit

A sworn written statement confirmed by oath before an officer. Often used in court or administrative filings. This entry explains more context so the preview is longer.

Business License

Authorization from a local government to legally operate a business. This entry explains more context so the preview is longer.

E-Recording

Electronic submission of documents to the county clerk through a secure online system. This entry explains more context so the preview is longer.

Lien

A legal claim on property, often used by creditors to secure repayment. This entry explains more context so the preview is longer.

Power of Attorney

A legal document allowing one person to act on another’s behalf in legal or financial matters. This entry explains more context so the preview is longer.

Probate

The legal process of validating a will and settling an estate after someone’s death. This entry explains more context so the preview is longer.

Quitclaim Deed

A deed that transfers interest in property without guarantees about ownership. This entry explains more context so the preview is longer.

Small Claims

A simplified court process to resolve disputes involving small amounts of money. This entry explains more context so the preview is longer.

Title Search

A check of public records to confirm legal ownership of property. This entry explains more context so the preview is longer.

Vital Records

Government documents such as birth, marriage, and death certificates kept by clerks. This entry explains more context so the preview is longer.

Articles of Organization

The filing that creates an LLC with the state.

Certificate of Formation

The state-approved document that officially forms an LLC or corporation.

Certificate of Good Standing

Proof from the state that your entity is active and compliant.

EIN (Employer Identification Number)

A federal tax ID number issued by the IRS for your business.

W-9 (IRS Form)

A form used to request a taxpayer’s name, address, and tax ID for 1099 reporting.

1099-NEC

The tax form used to report payments to non-employees (contractors).

W-4

An employee withholding form that helps determine federal income tax withholding.

I-9 (Employment Eligibility Verification)

A form employers use to verify an employee’s identity and authorization to work.

Sales Tax Permit

Authorization from your state to collect and remit sales tax.

Resale Certificate

A certificate used to buy inventory tax-free when you plan to resell it.

Business Bank Account

A dedicated bank account for business income and expenses.

Operating Agreement

An internal LLC document describing ownership, roles, and rules.

Corporate Bylaws

An internal document that defines how a corporation is governed.

Registered Agent

A person or service designated to receive legal notices for your entity.

Business Plan

A written plan describing your business model, market, operations, and finances.

Zoning Approval

Local confirmation that your business activity is allowed at a location.

Certificate of Occupancy (CO)

A document showing a building space is approved for a specific use.

Health Permit

Permission required for certain businesses that handle food or public health services.

Food Handler Certificate

A training certificate required for many food service workers.

Fire Inspection Certificate

A fire safety approval sometimes required before opening.

Alarm Permit

A local permit for monitored security alarms.

Sign Permit

A local permit required before installing exterior business signage.

Professional License

A state or board-issued license for regulated occupations.

Contractor License

A license or registration required for certain construction trades.

UCC Filing

A public notice used to secure a lender’s interest in business assets.

Business Insurance Policy

Coverage that protects your business from common risks.

Certificate of Insurance (COI)

A document showing active insurance coverage and limits.

Workers’ Compensation

Insurance that covers employee work-related injuries in many situations.

Payroll Tax Account

A state or federal account used to remit payroll withholding and employer taxes.

Business Credit Profile

A record used by lenders and vendors to evaluate business creditworthiness.

Merchant Account

A payment processing account that lets you accept card payments.

Business Email Domain

An email address tied to your domain (e.g., you@yourbusiness.com).

Trademark (USPTO)

A legal protection for a brand name, logo, or slogan used in commerce.

DBA Name Search

A check to see whether a business name is already in use or restricted.

Lease Agreement

A contract for renting commercial space.

Independent Contractor Agreement

A contract defining scope, pay, ownership, and responsibilities for contractors.

Non-Disclosure Agreement (NDA)

A contract that protects confidential business information.

Beneficial Ownership Information (BOI) Report

A report filed with FinCEN identifying the people who own/control a company (when required).

Annual Report

A recurring state filing required to keep many entities active.

Franchise Tax

A state-level tax or fee for certain business entities.

Gross Profit

Revenue minus the direct costs of producing goods or delivering services (COGS).

Net Profit

What remains after all expenses, taxes, and costs are subtracted from revenue.

Break-Even Point

The sales level where total revenue equals total costs (no profit, no loss).

Cash Flow

The movement of money in and out of your business over time.

Profit Margin

Profit expressed as a percentage of revenue (how much you keep per dollar earned).

Operating Expenses (OpEx)

Ongoing costs to run the business, such as rent, utilities, and payroll.

Cost of Goods Sold (COGS)

Direct costs required to produce goods sold or services delivered.

Balance Sheet

A financial statement showing assets, liabilities, and equity at a point in time.

Income Statement (P&L)

A report showing revenue, expenses, and profit over a period.

Statement of Cash Flows

A report showing cash coming in and out from operations, investing, and financing.

Accounts Receivable (A/R)

Money owed to your business by customers.

Accounts Payable (A/P)

Money your business owes to vendors or suppliers.

Invoice

A bill sent to a customer requesting payment for goods or services.

Purchase Order (PO)

A document a buyer sends to a seller confirming items, quantities, and price.

Vendor Agreement

A contract defining the terms for working with a supplier or service provider.

Service Agreement

A contract that defines services, timelines, payment, and responsibilities.

Employment Agreement

A contract outlining an employee’s role, pay, and key terms.

Offer Letter

A document offering employment with pay, start date, and conditions.

Employee Handbook

A written guide to company policies, expectations, and procedures.

Non-Compete Agreement

An agreement limiting certain competitive activities after a relationship ends.

Non-Solicitation Agreement

An agreement restricting solicitation of clients or employees.

Memorandum of Understanding (MOU)

A document outlining an intended agreement between parties.

Letter of Intent (LOI)

A document stating the major terms of a proposed deal before final contracts.

Business Valuation

An estimate of what a business is worth based on finances and market factors.

Startup Costs

Initial expenses required to launch the business.

Working Capital

Cash available for day-to-day operations (current assets minus current liabilities).

Burn Rate

How quickly a business spends cash, often used for startups.

Runway

How long you can operate before running out of cash at your current burn rate.

Capital Expenditures (CapEx)

Spending on long-term assets like equipment, vehicles, or renovations.

Depreciation

An accounting method that spreads the cost of an asset over its useful life.

Amortization

Spreading the cost of an intangible asset over time.

Budget

A plan for expected income and expenses over a period.

Forecast

A projection of future revenue and expenses based on assumptions.

Sales Pipeline

A visual of leads and deals as they move through your sales process.

Lead

A potential customer who may be interested in your product or service.

Qualified Lead

A lead that fits your target customer profile and shows buying intent.

Customer Acquisition Cost (CAC)

Average cost to acquire a new customer.

Lifetime Value (LTV)

Estimated total value a customer brings over the relationship.

Churn Rate

The percentage of customers who stop doing business with you in a period.

Gross Margin

Gross profit divided by revenue, expressed as a percentage.

Net Margin

Net profit divided by revenue, expressed as a percentage.

Markup

The amount added to cost to determine selling price.

Breakeven Analysis

A calculation that shows how many sales are needed to cover costs.

Pricing Strategy

The method you use to set prices to compete and earn profit.

Market Research

Gathering information about customers, competitors, and demand.

Target Market

The specific group of customers you aim to serve.

Value Proposition

A clear statement of why a customer should choose you.

Unique Selling Proposition (USP)

What makes your business meaningfully different from competitors.

Business Model

How your business creates, delivers, and captures value.

Business Structure

How a business is organized legally and for taxes (LLC, corporation, etc.).

Sole Proprietorship

A business owned by one person with no separate legal entity.

General Partnership

A business owned by two or more people sharing profits and liabilities.

Limited Partnership (LP)

A partnership with at least one general partner and limited partners.

Limited Liability Partnership (LLP)

A partnership structure that can limit personal liability for partners.

Single-Member LLC

An LLC with one owner; often taxed as a sole proprietorship by default.

Multi-Member LLC

An LLC with more than one owner; often taxed as a partnership by default.

C Corporation

A corporation taxed separately from its owners.

S Corporation Election

A tax status election that can change how profits are taxed for eligible entities.

Registered Agent Service

A paid service that provides a registered agent and receives legal notices.

Operating Budget

A plan for ongoing operating costs and expected revenue.

Chart of Accounts

A structured list of all accounts used in bookkeeping.

Bookkeeping

Recording and organizing financial transactions.

Accounting Method (Cash vs Accrual)

Rules for when revenue and expenses are recorded.

Accrual Accounting

Accounting method recognizing revenue/expenses when earned/incurred.

Cash Accounting

Accounting method recognizing revenue/expenses when cash changes hands.

Reconciliation

Matching records (bank, cards) to bookkeeping entries.

Payroll

Paying employees, calculating withholding, and filing required payroll reports.

Payroll Tax

Taxes tied to wages, including withholding and employer contributions.

Withholding

Amounts taken from pay for taxes and other required items.

W-4 (Employee Withholding Form)

A form employees use to set federal withholding.

I-9 (Employment Eligibility)

A form verifying an employee’s identity and authorization to work in the U.S.

E-Verify

An online system some employers use to confirm work eligibility.

Workers' Compensation Insurance

Insurance that covers employee work-related injuries.

General Liability Insurance

Insurance that helps protect against claims of injury or property damage.

Professional Liability (E&O)

Insurance that covers claims of professional mistakes or negligence.

Commercial Auto Insurance

Insurance for vehicles used for business.

Business Interruption Insurance

Coverage that can help replace income after certain disruptions.

Use Tax

Tax on out-of-state purchases used in a state when sales tax wasn’t collected.

Nexus

A connection to a state that can create tax/filing obligations.

Estimated Taxes

Quarterly tax payments often required for self-employed owners.

Quarterly Filing

Submitting required reports or tax returns every three months.

Franchise Disclosure Document (FDD)

A required disclosure document for selling franchises in the U.S.

Trademark Search

Checking whether a brand name/logo is already in use or registered.

Trademark Application

Filing to register a trademark with the USPTO.

Trade Name

A name used to do business that may differ from a legal entity name.

Domain Name

Your website address; can be a valuable brand asset.

Operating Agreement Amendment

A change to an LLC operating agreement.

Bylaws

Rules for how a corporation is governed.

Shareholder Agreement

An agreement defining rights and responsibilities of shareholders.

Capital Contribution

Money or assets an owner puts into the business.

Equity

Ownership interest in a business.

Debt Financing

Borrowing money that must be repaid, often with interest.

Equity Financing

Raising money by selling ownership shares.

Angel Investor

An individual who invests in early-stage businesses.

Venture Capital

Investment funds that finance startups in exchange for equity.

Convertible Note

A loan that can convert into equity under certain conditions.

SAFE Agreement

A startup funding agreement that converts to equity later.

Term Sheet

A summary of key terms for an investment or financing deal.

Line of Credit

A revolving credit account a business can draw from as needed.

Loan Agreement

A contract defining borrowing terms, interest, and repayment.

Promissory Note

A written promise to repay a debt under specified terms.

Personal Guarantee

An owner’s promise to repay a business debt personally if the business can’t.

Collateral

An asset pledged to secure a loan.

UCC-1 Filing

A public notice a lender files to claim interest in collateral.

Inventory

Goods a business holds to sell or use in production.

Inventory Management

Processes to track stock levels, ordering, and costs.

SKU (Stock Keeping Unit)

A unique code used to track inventory items.

Supplier

A business that provides goods or services to your business.

Distribution Channel

How products move from producer to customer.

Fulfillment

The process of storing, packing, and shipping orders.

Return Policy

Rules for returns, refunds, and exchanges.

Refund Policy

Written terms about when/how customers get refunds.

Privacy Policy

A website policy explaining what data you collect and how it’s used.

Terms of Service

Rules users agree to when using a website or service.

Cookie Policy

A policy explaining website cookies and tracking.

Data Retention Policy

Rules for how long records/data are kept and when deleted.

Recordkeeping

Keeping documents required for taxes, licensing, and compliance.

Document Retention Schedule

A timeline for keeping and disposing of business records.

Compliance

Following laws, regulations, and contractual obligations.

Permit Renewal

The process of renewing a permit to remain valid.

License Renewal

Renewing an active license to avoid expiration.

Good Standing

Status showing an entity has met filing and tax requirements.

Dissolution

Legally closing a business entity.

Wind Up

Steps taken to close operations, pay debts, and distribute assets.

Succession Plan

A plan for who runs/owns the business if leadership changes.

Buy-Sell Agreement

An agreement controlling how ownership is transferred.

Business Continuity Plan (BCP)

A plan to keep operations running during disruptions.

Disaster Recovery Plan (DRP)

A plan to restore systems and operations after a disruption.

SWOT Analysis

A framework to evaluate strengths, weaknesses, opportunities, and threats.

Marketing Plan

A written plan for how you will attract and retain customers.

Marketing Strategy

The approach to positioning and promoting your business.

Brand Guidelines

Rules for using your logo, colors, fonts, and messaging.

Competitive Analysis

Comparing your business to competitors to understand strengths and gaps.

Key Performance Indicator (KPI)

A measurable metric that tracks progress toward goals.

Standard Operating Procedure (SOP)

A written step-by-step process for consistent work.

Project Scope

The defined boundaries and deliverables of a project.

Statement of Work (SOW)

A document describing work, deliverables, timelines, and payment.

Change Order

A document approving changes to scope, time, or cost.

Net 30 Terms

Payment terms meaning payment is due 30 days after invoice date.

Retainer Agreement

A contract where a client pays in advance for ongoing services.

Escrow

A third party holds funds until agreed conditions are met.

Chargeback

A payment reversal initiated by a cardholder through their bank.

Payment Processor

A service that processes card or electronic payments.

Point of Sale (POS)

System used to accept payments and record sales.

Bank Reconciliation

Matching bank statements to bookkeeping records.

Audit Trail

A record of changes or transactions for accountability.

Internal Controls

Policies that reduce risk of error, fraud, or misuse.

Fraud Prevention

Measures to reduce risk of theft or scams.

Credit Policy

Rules for extending credit to customers and collecting payment.

Collections

Steps taken to recover unpaid invoices.

Demand Letter

A formal request for payment or action, often before legal steps.

Arbitration Clause

Contract language requiring disputes be resolved by arbitration.

Indemnification

A promise to cover certain losses or claims under a contract.

Force Majeure

A contract clause addressing uncontrollable events that prevent performance.

Governing Law

The state or jurisdiction whose laws apply to a contract.

Severability Clause

Contract clause keeping the rest of an agreement valid if one part is invalid.

Warranty

A promise about product quality or service performance.

Return Merchandise Authorization (RMA)

A number/process used to approve product returns.

Intellectual Property (IP)

Creations like logos, content, software, and inventions.

Copyright

Legal protection for original creative works.