A Close Corporation, also known as a Closely Held Corporation, is a type of corporation in which stock is publicly limited to a small group of investors, often involving tighter control and fewer regulations compared to large public corporations.
A Close Corporation Plan consists of a pre-arrangement that ensures surviving stockholders can purchase the shares of a deceased stockholder based on a pre-determined formula, thereby maintaining control of the corporation within the existing shareholder group.
A Personal Holding Company is a corporation that derives a substantial portion of its income from passive sources and is closely held by a small number of individuals to avoid personal taxes on investment and personal service income.
