American businesses are many and diverse, with their creation in any given case being driven by expectations that a select commercial form will yield distinct and optimal advantages. The United States is home to legions of mammoth corporations that are global in their dimensions, but it also supports millions of small businesses designated as sole proprietorships. In between are many and varied partnerships and limited liability companies.
We noted in a recent blog post the stated view of one business principal whose company was bought out by a closely held enterprise that the new ownership platform would better enable him as CEO to make decisions more firmly aligned with the company's interests.
A few months ago, we wrote a post about closely held businesses and we defined what this type of business is. Closely held businesses are essentially private businesses that have a very limited number of shareholders. Since it is "closely held," such a business can't go public and shareholders would not sell their shares (if they even wanted to in the first place) on a stock exchange.
Starting a new business can be exciting but frustrating. You'll be swamped with myriad tasks as you begin a life of entrepreneurship. In order to be successful, you should follow some basic steps to help keep you on track and safeguard your business. Neglecting certain requirements can lead to major financial and legal problems.
For those who are shareholders of a company or are particularly involved in the world of buying and selling stocks, the phrase "closely held corporation" isn't exactly stunning. But many people don't know what such a business is, so today let's talk about closely held corporations.