Glossary • Updated 2026
Close Corporation
A corporation with few shareholders operating with partnership-like informality under statute.
In detail
Delaware permits close-corporation status with relaxed meeting and bylaw formalities.
Transfer restrictions keep ownership tight: useful for family businesses.
VC-backed startups avoid it; investors require standard C-corp governance.
Where it matters
More definitions
Sources
- Cal. Rev. & Tax Code; 8 Del. C.; Wyo. Stat. Title 17; FTB/SOS glossaries