Definition - What does Close Corporation mean?
A close corporation is a corporation that is small in size (usually less than 35 people), and that does not issue stock to the public. Instead, all of the shareholders of a close corporation are people who are directly involved or closely related to the business. For example, owners of the business or their family members may own stock in a close corporation.
Justipedia explains Close Corporation
An example of a close corporation would be a small bicycle manufacturing company that has 30 employees and is not publicly traded. The shareholders of this corporation may include the owners of the business, some of the senior employees, a few family members of the owners, etc. Because close corporations are not publicly traded, they are not held to many of the rules and regulations that larger corporations are held. This can make the operation of close corporations more easy to handle.