So this ruling really is very narrow-gauge. Nevertheless, it is the kind of "pin-prick" that can make the Grand Egotist in Chief explode. Always a Work of Mercy worth doing.
Generally, a closely held corporation is a corporation that:IRS Q+A publicationThe definitions for the terms "directly or indirectly" and "individual" are in Publication 542, Corporations. A closely held corporation is subject to additional limitations in the tax treatment of items such as passive activity losses, at-risk rules, and compensation paid to corporate officers.
- Has more than 50% of the value of its outstanding stock owned (directly or indirectly) by 5 or fewer individuals at any time during the last half of the tax year; and
- Is not a personal service corporation.
Observe that this precludes Hobby Lobby for ever from seeking infusion of capital, whether or not the investor shares their values.
The situation of publicly traded would have to be treated separately if and when it arose. The USSC smiled on closely held corporations; it hasn’t yet frowned at other ones.