Understanding Corporations with Limited Shareholders – More Flexibility – Non-Traditionally Run Corporations 

A close corporation is a company whose shares are held by a select few individuals who are usually closely associated with the business. Such a corporate business structure is known by a variety of other names, such as “close corporation,” “privately held company,” “private company,” “family corporation” or “incorporated partnership.” Such a company may be referred to as “closely held,” “unlisted or “unquoted.” By structuring as a close corporation a partnership can benefit from liability protection without dramatically changing the way that the business operates. It can also offer companies greater flexibility in operations, as they are free from most reporting requirements and shareholder pressure.