Special types of corporations

Question 1

Closely held and close corporations

Answer 1

Only a few SHs; stock not publicly traded; more relaxed style of governance

Question 2

Foreign corporation

Answer 2

Incorporated in another state; must register and seek a certificate of authority from the current state

Question 3

Professional corporation

Answer 3

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

Question 4

S corporation

Answer 4

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