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A Close Corporation, also known as a family corporation, is generally a smaller corporation that elects close corporation status and is therefore entitled to operate without the strict formalities normally required in the operation of standard corporations. Many small business owners find this benefit invaluable. In essence, a Close Corporation is a corporation whose shareholders and directors are entitled to operate much like a partnership. The Close Corporation election is made at the state level and the state laws vary with respect to the eligibility of close corporation status and with respect to the rules governing them. Some states do not authorize them. The requirements to be eligible for a Close Corporation status include: no more than 30 to 35 shareholders, it cannot make a public offering of its stock, and shareholders must agree unanimously to a close corporation status. Close Corporations enjoy relaxed rules with respect to the formalities of governance, such as shareholders typically need not hold formal annual meetings and the shareholders may override the directors and act on their own.