Close Corporation Formation |
What is an Ohio Close Corporation?
Because of the corporate formalities that corporations are required to observe, it’s not unusual for businesses with relatively few shareholders to elect to be treated as “close” corporations. When set up correctly, a close corporation can greatly simplify both how the corporation is run and how the relationships among the various shareholders is managed. For example, a close corporation can eliminate the board of directors and dispense with having an annual shareholders’ meeting. Instead, the shareholders act in place of a board of directors and run the corporation much like a partnership or LLC. How Does an Ohio Corporation Become a Close Corporation? To form a close corporation in Ohio:
What should a close corporation agreement include? A close corporation agreement often replaces corporate regulations or bylaws and will look much like an LLC operating agreement or partnership agreement. The close corporation agreement should address:
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Corporation Formation includes:
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Single Shareholder or Spouses in a Close Corporation: $625
Multiple Shareholders: $2,300 Complex Formations: $4,475 Complex formations typically involve multiple classes of shares, vesting restrictions, investors, etc.) + $99 Minimum Secretary of State Fee |
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