Special Types of Corporations

Question 1

What are closely held and close corporations?

Answer 1

-> only a few SHs
-> stock not publicly traded
-> more relaxed style of governance

Question 2

What is a foreign corporation?

Answer 2

Incorporated in another state
-> must register and seek a certificate of authority from the current state to work in that current state

Question 3

What is a professional corporation?

Answer 3

The purpose is statutorily limited to the rendering of a professional service.

Question 4

What is an S corporation?

Answer 4

C avoids double taxation by passing income and expense through to its SHs, who are then taxed directly.

Question 5

What is a benefit corporation?

Answer 5

For profit; corporate purpose is creating social/environmental benefit rather than maximizing SH profit