#shelfcorps

Improving your chances of obtaining funds for your business or startup may be easier than you think. In fact, the simple act of buying an aged shelf corporation can open the floodgates of financing. It turns out there are several factors that play into the creditworthiness of a business, and the age of your venture accounts for only a small portion of that. So, while the age of your company does contribute to the overall appeal your business has to creditors, it shouldn’t ever be thought of as the main component to creditworthiness.

What Is an Aged Shelf Corporation?

By understanding the general premise of a seasoned shelf LLC, you can more effectively use it to improve your business and its prospects. While not all shelf companies are the same, good ones can help you appeal to creditors, vendors, and suppliers like never before. So, what is an aged shelf corporation and how does it do its magic?

Put simply, an aged shelf corporation, also referred to as and “aged corp” or “seasoned shelf company,” is a corporation that has been previously formed but remains unused. It’s readiness to be purchased by a new owner makes it a valuable piece of your business financing puzzle. In general, there are 3 main reasons why business owners choose to buy shelf corporations:

1.      To be able to engage in business, credit, and/or real estate agreements as a well-established company

2.      To cut out the waiting period that’s required to become a well-established company

3.      To gain access to financing options that are unavailable to new businesses

By approaching lenders and government agencies as a well-established business, you gain the opportunity to become approved for significant contracts, credit lines, leases, and banking relationships. Because many lenders are apprehensive about giving money to businesses that haven’t been around for very long, linking your company with a legitimate aged shelf corporation can shorten the waiting period and help your business achieve:

·         A substantial, positive credit history

·         Relevance in the industry

·         Legitimacy with creditors, vendors, and other businesses

During the initial stages of business credit building, most lenders are only comfortable with extending credit to companies that have been in business for at least two years. However, surviving on your own for those two years may be the reason why your business never reaches the pinnacle of success. Shortly thereafter, you become a statistic and your company flops. Instead of watching that happen, you can buy an aged shelf corporation from a reputable dealer and launch your business from a better vantage point.

What Comes with a Legitimate Aged Shelf Corporation?

Wholesale shelf corporations are readily available to businesses that want them. Keep in mind, however, that because of the current state of the economy, banks are now looking at far more than the relative age of your company. Ratings, credit history, NSF history, and several other factors play a role in a lender’s final decision to give you financing or not, especially if you’re asking for $50k or more.

With that said, it’s important that you buy shelf corporations from a dense shelf company list that features a variety of options. Remember that some aged corps have no business history, no tax returns, no financial records, and no existing revenue. However, you don’t want to invest in a shelf corporation that has done business in the past because you may end up acquiring the liabilities of that corporation. It’s critical that the shelf LLC you purchase has no lingering liabilities you could inherit.

For the most part, you can simply look at the history of the aged shelf corporation you’re interested in to see the extent of its business activities. Were the activities properly limited or nonexistent? Does the aged LLC have an EIN or established bank accounts? Aged shelf corporations can be an extremely useful option if proper due diligence is taken before you buy it.

When searching for the best aged shelf corporations on the market, looks for a company that offers the following:

·         IRS Company Registration

This will include a new tax ID number and EIN (Employer Identification Number). Usually, you’ll have access to this information within a week or less.

·         Dun and Bradstreet (DUNS) Registration

This will help make sure your new aged shelf corporation’s credit history is reported in a timely manner. Registration for this should only take about five days.

·         The First Annual Report

This will include a concise report to the Secretary of State Officer with an updated business address. Again, this process should be completed within less than a week.

·         Merchant Account Setup

This makes your shelf LLC capable of accepting all credit cards and eChecks as a form of payment, further adding to its legitimacy. It should only require a few days as well.

·         Various Directory and/or Search Engine Listings

This usually includes comprehensive, searching business listings on 411, Yellow Pages, Super Pages, Bing, Google, Yelp, Yahoo, and so on.

·         A Consultation with an Asset Protection Attorney

Within the first week of acquiring your new aged shelf corporation, you should have access to a knowledgeable asset protection attorney to ensure you take the right steps from thereafter.

·         A Consultation with a Corporate CPA

A viable purchase of a shelf LLC should also include a free consultation with a licensed corporate CPA to help you make wise financial decisions with your new asset.

Depending on the reasons why you buy a shelf corporation, you may need a few more things to achieve your goals with the new acquisition. Although you may be required to make an additional investment for those things, some of the following may come with your purchase of a legitimate aged shelf corporation:

·         Corporate Phone/Fax System Setup

This will likely include an automated attendant.

·         Website Establishment

This will likely include a unique domain name and functional email system.

·         Foreign Entity Registration

This will likely include the submission of a foreign entity registration application to your home state. However, government fees will probably not be included.

·         Access to a Corporate Cash Credit Funding Program

This will allow you to use your newly acquired credit history to obtain the financing you need through a large network of lenders.

·         Trade Name Registration

This will likely include the submission of a trade name registration application, but again, any extra government fees required will probably not be included.

·         Occupational Licenses

This may include local city, county, and/or state occupational licenses and as usual, the government’s fees will require an additional cost.

In fact, a good way to tell whether you’re buying an aged shelf corporation from the right company is to look for the complete package – corporate kits with official seals, bank account opening and management services, registered agents, business and/or marketing plans, and nominee officer services (albeit at an additional cost). The point is to make your new aged corporation as authentic as possible, so you can get a substantial line of credit, industry legitimacy, and peace of mind.