Business Formation Documents Overview

When onboarding your group or practice for credentialing, you’ll be asked to provide business formation documents. These documents prove your organization’s legal existence and structure—requirements that vary depending on whether you’re a sole proprietor, LLC, corporation, or partnership. Understanding which document applies to your business type will help you prepare the right paperwork and avoid delays.

What Are Business Formation Documents?

Business formation documents are official records that establish your business as a legal entity. They are filed with your state or local government and outline key details such as your business name, structure, ownership, and management. These documents are essential for:

• Registering with insurance payers and government programs

• Opening business bank accounts

• Obtaining tax IDs and licenses

• Demonstrating compliance during credentialing

Types of Business Formation Documents

Below is an overview of the most common business structures and the documents associated with each. For more details, see the linked articles for each document type.

Business Type	Key Formation Document(s)	Purpose/Notes
Sole Proprietorship	DBA (Doing Business As), Business License	Minimal paperwork; DBA required if using a name other than your own.
Limited Liability Company (LLC)	Articles of Organization, Operating Agreement, EIN	Articles of Organization filed with state; Operating Agreement recommended.
Corporation (C Corp or S Corp)	Articles of Incorporation, Corporate Bylaws, EIN, S Corp Election (Form 2553 for S Corps)	Articles of Incorporation filed with state; S Corps must file IRS Form 2553.
Partnership	Partnership Agreement, Certificate of Partnership (if required), EIN	Partnership Agreement outlines roles, contributions, and profit sharing.

Sole Proprietorship

• DBA (Doing Business As): Required if operating under a name different from your legal name.

• Business License: May be required by your city or county.

• EIN: Optional unless you have employees or certain tax obligations.

Limited Liability Company (LLC)

• Articles of Organization: Filed with your state to create the LLC.

• Operating Agreement: Internal document outlining ownership and management (recommended even if not required).

• EIN: Required for tax purposes and opening bank accounts.

Corporation (C Corp or S Corp)

• Articles of Incorporation: Filed with your state to create the corporation.

• Corporate Bylaws: Internal rules for governance and operations.

• EIN: Required for tax purposes.

• S Corp Election (Form 2553): Filed with the IRS if electing S Corp status.

Partnership

• Partnership Agreement: Outlines each partner’s roles, contributions, and profit/loss sharing.

• Certificate of Partnership: May be required by your state for certain types of partnerships.

• EIN: Required for tax purposes.

Why Are These Documents Important for Credentialing?

• Proof of Legal Existence: Payers and regulators need to verify your business is properly established.

• Ownership and Control: These documents clarify who owns and manages the business, which is critical for compliance.

• Consistency: The information on your formation documents should match what you submit on credentialing applications, tax forms, and insurance paperwork.

Best Practices

• Keep documents current and accessible.

• Use your legal business name as shown on your formation documents for all official paperwork.

• Update your documents if your business structure, ownership, or name changes.

• Consult your state’s Secretary of State or a legal advisor for specific requirements.