Is a Corporation Always a Public Entity?

Question

I'm having a little trouble finding a concrete answer to this. I am forming a business and believe and LLC is the way to go, but am briefly considering an S-Corporation, however, I am not interested in the company being publicly owned, i.e. I want complete control over the operations. Can I do this with a corporation, or do I instantly become confined to a sole-proprietorship or LLC? Thanks.

I just found that there is a such thing as a non-stock for-profit corporation with no members, althogh very rare. Would this be a solid possibility, and how would I go about forming it to ensure there were no members? Thanks again.

Okay, last time with the additional details, here's some additional honesty. It is a lot cheaper in Illinois to organize as a corp. over an LLC. My main concern, however, is liability. As long as I am protected, I am happy. However, I need to maintain complete control over my organization, I do not want this to be a voting entity. Tax status is a concern, though less of one, although, correct me if I'm wrong, since an S-Corp avoids double-taxation, wouldn't it be the same as an LLC? And if I wasn't going to have members, wouldn't a C and S really be the same to me as far as taxation is concerned?

Answer 1

Many corporations are privately owned, even some really really big ones, like Mars that makes M&Ms and Snickers, so you certainly can keep your S Corporation privately held.

Without knowing the particulars of your situation, it's hard to know exactly the way to go, but for most people, LLCs are easier to maintain and do everything you need.

Answer 2

The answer to your initial question is No. Publicly owned companies issue stock, which is traded on the stock exchanges, like NASDAQ & NYSE. They are heavily regulated by the SEC and other regulatory agencies. LLC's, S Corps, Partnerships and Corporations are form of Incorporation, which have nothing to do with who owns them. They are formed as such, for legal purposes. I'm an accountant, not a lawyer, but I think you're right...LLC is the way to go, because it is what's known legally, as a "pass through" entity. Consult a lawyer. Good luck !

Answer 3

There are PLENTY of privately own corporations. Some of them are VERY large. Cargil is the largest (a food company) followed by Koch industries (a huge family owned petrolium company) etc.
A non prof is only a rare example. Private comapnies come in all shapes and sizes. Some go public and some never do.

Answer 4

You can be a C-Corp or an S-Corp an own 100% of the stock. You don't need to go public.

The reason companies sell stock is to raise capital.