# Business formation basics Entity type, state of formation, and what each one means for the licenses you'll later go after. ## What you will learn - How entity choice ripples into licensing - Why state of formation matters when you expand - The paperwork that follows formation ## Entity type ripples into everything else Most regulated industries accept the common entity types , LLC, corporation, partnership , but the supporting documents differ. A corporation will need bylaws, an officer list, and a stock structure. An LLC will need an operating agreement and a member list. Either way the state regulator will look at the [[term:control-person]] list and run background checks on the senior owners and officers. ## State of formation versus state of operation Where the entity is formed and where it does business are two separate questions. A Delaware LLC operating in Texas needs to register in Texas as a foreign entity, appoint a Texas [[term:registered-agent]], file a Texas [[term:certificate-of-authority]], and then go after its Texas license. The Delaware formation by itself does not let it operate in Texas. ## What follows formation Almost every newly-formed regulated entity quickly picks up an EIN, an operating agreement or bylaws, a [[term:doing-business-as]] filing if it uses a trade name, and a registered-agent appointment in every state where it plans to operate.