decisions in closely held corporations
call for more judicial scrutiny
11) While there is no standard set of attributes, certain characteristics distinguish closely held corporations
from their publicly traded counterparts.
For the purposes of determining material participation, individuals, estates and trusts are treated differently from closely held corporations
and personal service corporations.
Fortunately, many states have enacted laws that relax nonessential governance requirements for closely held corporations
The IRS has typically applied this asset approach when a closely held corporation
functions as a holding company and earnings are relatively low in comparison to the fair market value of the underlying assets.
In third-party transfers involving closely held corporations
, the scenario changes.
The first step in the process of valuing a stock interest in a closely held corporation
is valuing the entire business.
Establishing a reasonable compensation level is a not a science, especially when it includes a contingent compensation arrangement in a closely held corporation
These increasingly popular restrictive agreements can be valuable tools to closely held corporations
that seek to protect shareholder ownership interests and increase the probability of achieving a long and successful operating life.
As a practical matter, the tax is imposed almost exclusively on closely held corporations
This question normally arises when dealing with closely held corporations
that have few, if any, employees other than those receiving the distributions.
Further, transactions involving closely held corporations
and their controlling shareholders demand close scrutiny.