Closely Held Corporation

AAA

DEFINITION of 'Closely Held Corporation'

Any company that has only a limited number of shareholders. Closely held corporation stock is publicly traded on occasion, but not on a regular basis. These entities differ from privately owned firms that issue stock that is not publicly traded. Those who own shares of closely held corporations should consult a financial planner with expertise in the tax and estate ramifications that come with owning this type of stock.

INVESTOPEDIA EXPLAINS 'Closely Held Corporation'

Despite the fact that its stock is listed, many transactions between major shareholders and closely held corporations do not receive the same preferential tax treatment as those of corporations with actively traded stocks. Deductions and losses may not be allowed in some instances for parties involved in these transactions.

RELATED TERMS
  1. Alien Corporation

    A corporation that was created in another country. Alien corporations ...
  2. Close Corporation Plan

    A form of business buy-sell agreement. Close Corporation Plans ...
  3. Corporation

    A legal entity that is separate and distinct from its owners. ...
  4. Subchapter S (S Corporation)

    A form of corporation that meets the IRS requirements to be taxed ...
  5. Closed Corporation

    A business that is set up using a corporate business structure, ...
  6. LLC Operating Agreement

    An LLC Operating Agreement is a document that customizes the ...
Related Articles
  1. Managing Income During Retirement
    Budgeting

    Managing Income During Retirement

  2. Establishing A Revocable Living Trust
    Retirement

    Establishing A Revocable Living Trust

  3. From Booms To Bailouts: The Banking ...
    Home & Auto

    From Booms To Bailouts: The Banking ...

  4. 6 Bad Stock Buyback Scenarios
    Markets

    6 Bad Stock Buyback Scenarios

comments powered by Disqus
Hot Definitions
  1. Stop-Limit Order

    An order placed with a broker that combines the features of stop order with those of a limit order. A stop-limit order will ...
  2. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  3. Pareto Principle

    A principle, named after economist Vilfredo Pareto, that specifies an unequal relationship between inputs and outputs. The ...
  4. Budget Deficit

    A status of financial health in which expenditures exceed revenue. The term "budget deficit" is most commonly used to refer ...
  5. Floating Exchange Rate

    A country's exchange rate regime where its currency is set by the foreign-exchange market through supply and demand for that ...
  6. Underwriting

    1. The process by which investment bankers raise investment capital from investors on behalf of corporations and governments ...
Trading Center