An individual or entity that guarantees to pay a loan if the debtor defaults. Often used in real estate financing.

A term used to describe an entity which has satisfied state corporate or LLC law requirements such as filing all the necessary reports and documents, having a Registered Agent, and being up-to-date with regards to all penalties and fees owed to the state.

Good faith is a legal requirement of honesty that is present in negotiation, meaning that parties cannot purposely hide things from another party or attempt to deceive them.

Provision that gives substantial benefits to officers who are forced to leave the company through takeover or otherwise.

A general partner is an individual who manages an LP. In an LP, the General Partner is personally liable for business debts. To avoid personal liability, an entity like a corporation or LLC can be named as a General Partner. Passive partners are called Limited Partners.

A for-profit corporation which has stockholders who elect directors, who in turn appoint officers. This can be an S-Corporation or a C-Corporation, but they all “start out” as C-Corporation, unless the form 2553 tax election is made.