Glossary

IRS Tax Forms:

• Form 1040: Individual federal income tax return for U.S. residents. Requires a Social Security Number (SSN).

• Form 1040-NR: Individual federal income tax return for nonresidents of the U.S. Used to report income, claim refunds, or pay taxes owed. Requires an Individual Taxpayer Identification Number (ITIN).

• Form 1065: Informational return filed by partnerships to report income, gains, losses, and distributions. It does not directly result in a tax payment or refund.
• Form 1099: A group of tax forms used to report income paid to individuals who are not employees, such as independent contractors or service providers. The payer sends it to both the recipient and the IRS.
• Form 1099-INT: A tax form used to report interest income earned from banks, financial institutions, or other payers.
• Form 1099-NEC: A tax form used to report payments made to independent contractors for services (non-employee compensation).
• Form 1120: Annual federal income tax return for C-Corporations. Reports income, expenses, deductions, and calculates corporate tax liability. Must be filed even if there was no business activity.
• Form 1120-S: Annual federal income tax return for S-Corporations. Reports income, deductions, and credits, with tax liability passing through to shareholders. Must be filed even if there was no business activity.
• Form 5472: Informational return used to report transactions between a U.S. company and a foreign or domestic related party. No payment or refund is processed with this form.
• Form 8804: Annual return filed by U.S. partnerships to report and pay tax withheld on foreign partners’ earnings.
• Form 8805: Statement issued to each foreign partner detailing the tax withheld and credited to their account.
• W-7: IRS application form for individuals not eligible for a Social Security Number to obtain an ITIN for tax purposes.
• W-8BEN: Form used by non-U.S. individuals to certify foreign status and claim tax treaty benefits on U.S.-source income.
• W-8BEN-E: Form used by non-U.S. entities to certify foreign status and claim tax treaty benefits.
• W-9: Form used by U.S. persons and entities to provide their Taxpayer Identification Number and certify tax status for reporting purposes.

Other terms

• Amendment: Official modification or correction to company information, such as business name, members, address, or registered agent. Filed with the state, the IRS, or both, depending on the case.
• Bylaws: Internal operating rules of a corporation defining how directors are elected, meetings are held, and decisions are made.
• Certificate of Formation / Articles of Organization: State-level document used to create an LLC, establishing its existence and basic details such as name, address, purpose, and registered agent.
• Certificate / Articles of Incorporation: State-level document used to create a corporation (C-Corp or S-Corp).
• Annual Report: Also called State Renewal or Franchise Tax Report. Filed annually or biennially with the state to keep a business active and in good standing. Includes basic company information but is not a financial statement or tax return.
• BE-13: Survey from the Bureau of Economic Analysis (BEA) used to track foreign direct investment in the U.S.
• BOI: FinCEN filing required under the Corporate Transparency Act that identifies a company’s beneficial owners to increase transparency and prevent misuse.
• Business Permit/License: Official authorization to legally operate a business in a city, county, or state. May require specific permits depending on the activity. Typically needed if the business has a physical presence in the U.S.
• CMRA: Commercial Mail Receiving Agency. Requires client authorization (via Form 1583 and notarization) to open, receive, and manage correspondence at a virtual address, as mandated by USPS.
• 1583: USPS authorization form allowing a Commercial Mail Receiving Agency (CMRA) to open mail for an individual or business, requiring identity verification.
• Company Documents: For LLCs: EIN Letter, Certificate of Formation/Articles of Organization, and Operating Agreement. For Corporations: EIN Letter, Certificate/Articles of Incorporation, and Bylaws.
• CP 575: Original IRS letter assigning an EIN to an entity. Required to open business bank accounts, hire employees, and file taxes. Also called Official EIN letter.
• 147C: Verification letter issued by the IRS at the taxpayer’s request to confirm the EIN. It serves as a replacement if the original CP 575 (Official EIN letter) was lost or never received.
• ECI: Effectively Connected Income. Income earned by a foreign person or entity that is connected with a U.S. trade or business, taxed on a net basis with allowable deductions.
• IRS: Internal Revenue Service, the U.S. federal agency under the Department of the Treasury responsible for administering and enforcing federal tax laws. 
• ITIN: Nine-digit number issued by the IRS for federal tax purposes, allowing individuals not eligible for a Social Security Number to file tax returns and pay taxes in the U.S.
• Franchise Tax: Tax imposed on businesses for the privilege of operating in a state. Often based on net worth, assets, or gross receipts. Rules vary by state.
• Operating Agreement: Internal LLC document outlining ownership, management, and operating rules, including profit distribution and member responsibilities.
• Registered Agent: Designated contact between a company and the state, responsible for receiving official documents, legal notices, and compliance communications. Helps protect personal data from being public.
• Resale Tax Certificate: State-issued document allowing businesses to purchase goods for resale without paying sales tax, shifting the tax obligation to the final consumer.
• Sales Tax: State or local tax on the sale of goods and certain services. Businesses collect it from customers and remit it to tax authorities.
• SS-4: IRS application form used by entities to obtain an Employer Identification Number (EIN).
• SSN: Social Security Number, a unique identifier issued to U.S. residents for tax and social security purposes.
• USPS: United States Postal Service, the federal agency that delivers mail and packages nationwide and provides postal services.
• Virtual Address: Professional mailing address provided by a third-party service, allowing businesses to receive mail and register a company without a physical office.