Forming a Close Corporation
A close corporation is similar to a regular corporation, but it features relaxed requirements regarding bylaws and paperwork because it was designed for small business owners. Since the dawn of the LLC, close corporations are not as commonly formed as they once were, with many businesses that may have previously wanted to file a close corporation electing to file an LLC instead. Explore both options to decide which one best suits your business goals.
What Is a Close Corporation?
A close corporation is like a traditional corporation, but it is exempt from many formal rules that typically govern corporations due to its relatively small number of shareholders. It can be run directly by the shareholders without the need for a formal board of directors or annual meetings. Close corporations’ shareholders generally may not transfer their shares of stock without allowing the corporation’s other shareholders a right of first refusal. In addition, the close corporation’s election is made in the business entity’s articles of incorporation.
At the moment, there are approximately 6,000 close corporations currently registered in Missouri.
Form a Close Corporation Today
At the Piatchek Law Firm, our knowledgable business attorneys are available to help you decide what kind of business formation would best serve your interests. The laws concerning business formation and close corporations are complex and vary from state to state. The expertise of an experienced attorney is invaluable to setting up your business correctly. For assistance with the formation or management of your close corporation, call us at 417-882-5858 or send us an email to schedule a consultation by phone or in person.