- There are a lot of corporate formalities…that a small business has to observe…if they're going to be a corporation.…They have to have their annual minutes,…they have to have a board of directors,…they have to have meetings.…Some states know this and they've created…a special class of corporation called the close corporation.…It's for corporations with small groups of people.…A close corporation is generally a smaller corporation…that elects that status and is therefore entitled…to operated without the strict formalities…that are normally required of a corporation.…
Many small businesses find it beneficial.…In essence, a close corporation is a corporation…whose shareholders and directors are entitled…to operate very much like a partnership.…The close corporation, election is made at the state level.…State laws vary with respect to the eligibility…of being a close corporation.…Each state varies.…Some states don't recognize them at all.…Corporations must meet particular requirements…to be eligible for close corporation status.…
DISCLAIMER: This course is taught by an attorney and addresses US law concepts that may not apply in all countries. Neither LInkedIn nor the attorney teaching the course represents you and they are not giving legal advice. The information conveyed through this course is akin to a college or law school course; it is not intended to give legal advice, but instead to communicate basic information to help viewers understand the basics of intellectual property.
- Determine the purpose of a fictitious business name (FBN).
- Distinguish between types of entities.
- Identify required components for setting up a corporate entity.
- Recognize elements in bylaws.
- Interpret the purpose of federal tax identification.