{"ok":true,"canonical_url":"https://dealroom.so/glossary/formation-document","api_url":"https://dealroom.so/api/public/glossary/formation-document","data_freshness":{"sba_records_through":"2026-05-31","fdic_records_through":"2026-03-31","dealroom_last_updated":"2026-06-15","timezone":"America/Chicago"},"source_summary":["Public SBA 7(a) loan records","FDIC institution data","DealRoom lender and franchise enrichment"],"term":{"slug":"formation-document","term":"Formation Document","group":"People and paperwork","definition":"This is the legal paperwork filed with a state to officially create a business entity, like Articles of Incorporation for a corporation or Articles of Organization for an LLC. It establishes the business's legal existence.","what_it_means":"Your lender will require these documents for the target business to verify its legal structure and ownership. If you're forming a new entity to acquire the business, you'll need to provide its formation documents as well. Ensure they are current and accurately reflect ownership.","url":"https://dealroom.so/glossary/formation-document","official_sources":[],"related":[{"slug":"corporation","term":"Corporation","url":"https://dealroom.so/glossary/corporation"},{"slug":"llc","term":"LLC","url":"https://dealroom.so/glossary/llc"},{"slug":"partnership","term":"Partnership","url":"https://dealroom.so/glossary/partnership"},{"slug":"legal-fee","term":"Legal fee","url":"https://dealroom.so/glossary/legal-fee"}],"related_questions":[{"question":"What is an SBA *loan authorization* document, and why is it important?","url":"https://dealroom.so/sba-loans/basics/what-is-an-sba-loan-authorization-document-and-why-is-it-important"},{"question":"What is the specific SBA policy document that addresses collateral life insurance requirements?","url":"https://dealroom.so/sba-7a/questions/what-is-the-specific-sba-policy-document-that-addresses-collateral-life-insurance-requirem"},{"question":"What information is required to document the purchase price allocation for a business acquisition?","url":"https://dealroom.so/sba-7a/questions/what-information-is-required-to-document-the-purchase-price-allocation-for-a-business-acqu"},{"question":"How does a lender document adherence to prudent lending standards in the underwriting credit memo?","url":"https://dealroom.so/for-lenders/questions/how-does-a-lender-document-adherence-to-prudent-lending-standards-in-the-underwriting-cred"},{"question":"How does the buyer's responsiveness to document requests affect the SBA 7(a) application timeline?","url":"https://dealroom.so/sba-7a/questions/how-does-the-buyer-s-responsiveness-to-document-requests-affect-the-sba-7-a-application-ti"},{"question":"How should a lender document eligible liquidation expenses within the UPP for a 7(a) guaranty purchase?","url":"https://dealroom.so/for-lenders/questions/how-should-a-lender-document-eligible-liquidation-expenses-within-the-upp-for-a-7-a-guaran"}]},"caveats":["Definitions represent DealRoom's plain-English interpretation for buyers; verify regulatory terms against the official SBA and eCFR sources listed.","Not legal, tax, or financial advice, and not an SBA eligibility determination."],"citation":{"label":"DealRoom.so Glossary — Formation Document","url":"https://dealroom.so/glossary/formation-document","source_type":"DealRoom Data"}}