Solutions, Inc., a consultancy firm in the United States, has thirty-five shareholders. It decides to raise capital by issuing shares to more people, thereby increasing the number of shareholders. However, Solutions finds that the law prohibits it from doing so. Based on this information, Solutions is a .

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Solutions, Inc. is a Subchapter S corporation, which is a type of corporation that is limited to a maximum of 100 shareholders and is not allowed to issue shares to the public. This restriction is in place to maintain the status of the corporation as a "closely held" company, where the shareholders typically have a close relationship with the business and are involved in its management.