MGMT 209 Chapter 9: Corp and LLC notes
15 Dec 2020
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Closely held corp / closed corp. / family corp/ small corp. All the interest in the corp is held by a very small number of people. Created like a corp, it is a corp must follow corporate requirements. Shares are held by a small number of shareholders and transfer is limited. Can structure the corp to limit corp taxes. S corporation - only works for small corps. But your accountant must fill out all the requirements for the irs. The irs can change the rules when they want. Can only be owned by a private individual that"s an. If you go over by one it ruins it and you are now a c corp. and have to pay higher taxes. Avoids double taxation but has limited liability. Only available for a limited type of professionals. Usually for attorneys, doctors, vets, law firms. Does for torts and contracts of other attorneys. Readily transferability - aka public trading on the stock market.
