Closed Corporation

(redirected from Closely-Held Corporation)
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Related to Closely-Held Corporation: privately held corporation, S corporation

Closed Corporation

A type of business corporation that is owned and operated by a small group of people.

A closed corporation is also known as a close corporation, a family corporation, an incorporated partnership, and a chartered partnership. In this type of corporation all of the functions are usually performed by the same parties. These individuals serve as shareholders, officers, and directors and are involved in the management and operation of the business. A closed corporation differs from a publicly held corporation since its stock is neither issued nor traded to the public at large.

References in periodicals archive ?
(d)(3) (May 30, 2014), available at http://www.legis.la.gov/Legis/ViewDocument.aspx?d=912786 (observing that "shareholders of a closely-held corporation are commonly compensated largely through their employment by the corporation").
In Estate of Pauline Welch,[11] the decedent was a minority stockholder in two closely-held corporations. The valuation date for estate tax purposes was the date of death, March 18, 1993.
The corporate reorganization provisions are quite complex and beyond the scope of this article, but it is pertinent to note that if various requirements are met, owners of a closely-held corporation may be able to sell it in a tax-free transaction.
The personal holding company provisions were originally intended to prevent individual taxpayers from using closely-held corporations to avoid individual income taxes on investment and other specific types of income.
The court held that bonuses authorized to be paid to the taxpayer, the majority shareholder and president of the closely-held corporation, were constructively received in the year of authorization because (1) the money was currently available to him, (2) the right to receive the money was not restricted, and (3) the failure to receive cash currently resulted from the exercise of the taxpayer's own choice (i.e., as controlling shareholder, president, treasurer, and director, the taxpayer clearly could have obtained payment before year-end).
Certainly, if the business owners ask the business appraiser to advise them regarding the net proceeds to expect from the sale of their closely-held corporation, then consideration of the alternative tax forms of corporation sale is essential to the valuation analysis.
It details the lifecycle of business from formation through dissolution and covers the theory of the firm, with a focus on business law, including issues related to closely-held corporations and publicly-traded corporations.
Rather than compel closely-held corporations to fund birth control against their owners' creed, the court said that the government could instead provide the birth control directly to women who seek it, thus ensuring access while also preserving religious liberty.
As a certified public accountant with nearly 20 years' experience in handling tax and accounting matters, Panebianco has developed a client base of domestic and multinational entrepreneurs and executives, including their family members, trusts, partnerships and closely-held corporations.
A group of mostly unrelated growers (described as "primarily unrelated closely-held corporations whose farming activities are conducted in" A) own these three companies.
* Valuation of Closely-Held Corporations by Otto Martinson and Ted Englebrecht, and