Employment of Executive or General Manager in a Closely Held Corporate Business

A corporation whose shares are held by a single shareholder or a closely-knit group of shareholders (such as a family) is known as a close corporation. The shares of stock are not traded publicly. Many of these types of corporations are small firms that in the past would have been operated as a sole proprietorship or partnerŽship, but have been incorporated in order to obtain the advantages of limited liability or a tax benefit or both. This type of employment agreement might be in order for the chief operating officer of such a corporation.