Family owned businesses or businesses that have very few shareholders may consider electing close corporation status. This must be done as early as possible in the pre-incorporation meetings to allow time to draft and obtain approval of a shareholders' agreement covering the corporate structure. Either the original articles or amended articles must state the election to be a statutory close corporation. Close corporations may have no more than 35 shareholders. Although certain aspects of the close corporation may appear attractive, close corporations have advantages and disadvantages that should be discussed with your attorney or tax advisor. 
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