Close Corporation Articles of Incorporation are essential when forming a tightly-held business entity in the United States that desires to maintain strict control over ownership and simplified corporate governance. This document is particularly useful for family businesses, professional practices, and small companies where shareholders want to maintain close relationships and prevent outside ownership. The articles typically include provisions for stock transfer restrictions, simplified management structures, and often allow shareholders to manage the business directly without a board of directors. This type of corporation offers greater flexibility in management while maintaining the liability protection of a traditional corporation.
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1. Article I - Name and Purpose: Corporate name and primary business purpose
2. Article II - Registered Office and Agent: Official address and registered agent details
3. Article III - Capital Stock: Authorized shares, classes of stock, and par value
4. Article IV - Close Corporation Status: Declaration of close corporation status and related restrictions
5. Article V - Board of Directors: Initial directors and governance structure
1. Article VI - Preemptive Rights: Rights of existing shareholders to purchase new stock issues. Include when shareholders want protection against dilution.
2. Article VII - Share Transfer Restrictions: Detailed restrictions on stock transfers. Include when additional transfer restrictions beyond statutory requirements are needed.
3. Article VIII - Shareholder Management: Provisions for direct shareholder management. Include when eliminating board of directors.
1. Schedule A - Initial Shareholders: List of initial shareholders and their stock holdings
2. Schedule B - Stock Transfer Procedures: Detailed procedures for transferring shares
3. Appendix A - Shareholder Agreement: Supplementary agreement governing shareholder relations
4. Appendix B - Corporate Bylaws: Detailed operational rules of the corporation
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