Answered by: Alec Green - 14 December, 2010
The difference in filing for either type of entity is minimal. All one has to do to, as far as the state is concerned, is mention in the Articles of Incorporation that the new company will be a Close Corporation. Once the corporation is formed, its bylaws should reflect that it is a Close Corporation and contain the appropriate provisions.
As for as the S-Corporation status
, the IRS does not care whether the company is a regular or a close corporation. Either type of entity can elect to be treated as a subchapter-S corporation when it comes to its tax obligations.