Copyright (C) 2010 FMS Nevada, LLC. All Rights Reserved
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LAS VEGAS , NV 89123
702-952-9595
WWW.FMSNEVADA.COM
info@fmsnevada.com
A “Shelf Corporation, also known as an “Aged Corporation” (or “Aged Company” when referring to an LLC, for example) is a corporation that is already formed, but not in use, and ready for “purchase” by a new owner.
People purchase shelf corporations for many reasons, and there are certain things to look out for when considering one of these “ready made” corporations.
Shelf corporations allow new owners to engage in business, get credit, or enter into real estate agreements as an established company–without having to go through the time-consuming process and waiting required for establishing a brand new corporation.
Most potential creditors or business resources are hesitant to engage brand new or up-start corporations. By approaching them as an established corporation or company (obviously, the more years the corporation has been in existence, the better), the more likely your company is to be taken seriously. This may grant your business more access to credit lines, banking relationships, leases, etc. These banking relationships, agreements, Dun & Bradstreet-type rating systems, etc., should all be considered when looking at potential aged corporations. Additionally, it is of paramount importance that these shelf corporations are acquired from trusted sources that know the intricacies of weeding out those with potential built-in or have existing liabilities.
Once you have properly selected a shelf corporation, it will in turn enable you to establish an immediate history and instant credibility for your company and help establish your corporate image. In most instances, you will instantly be able to bid on state contracts (states generally have minimum longevity rules for companies that are allowed to bid on their contracts), obtain lines of credit more easily and obtain loans from the Small Business Administration in your state. And you will attract potential investors more readily with an “established” corporation.
It is critically important that the shelf corporation you are considering not have any inherent or lingering liabilities. For the most part, this can be assured by looking into the history of the corporation and ensuring that the extent of its business activities was limited to the application of an Employer Identification Number and perhaps the formation of a bank account.
The best practices approach is to acquire aged or shelf corporations only from reputable providers (or resellers) who have a history of successful transactions in a given arena. These providers can be counted upon to provide indemnification to the purchaser (a guarantee against pre-existing debts or liabilities) for the sale, and to conduct all of the due diligence prior to offering the shelf corporation for sale.
People purchase shelf corporations for many reasons, and there are certain things to look out for when considering one of these “ready made” corporations.
Shelf corporations allow new owners to engage in business, get credit, or enter into real estate agreements as an established company–without having to go through the time-consuming process and waiting required for establishing a brand new corporation.
Most potential creditors or business resources are hesitant to engage brand new or up-start corporations. By approaching them as an established corporation or company (obviously, the more years the corporation has been in existence, the better), the more likely your company is to be taken seriously. This may grant your business more access to credit lines, banking relationships, leases, etc. These banking relationships, agreements, Dun & Bradstreet-type rating systems, etc., should all be considered when looking at potential aged corporations. Additionally, it is of paramount importance that these shelf corporations are acquired from trusted sources that know the intricacies of weeding out those with potential built-in or have existing liabilities.
Once you have properly selected a shelf corporation, it will in turn enable you to establish an immediate history and instant credibility for your company and help establish your corporate image. In most instances, you will instantly be able to bid on state contracts (states generally have minimum longevity rules for companies that are allowed to bid on their contracts), obtain lines of credit more easily and obtain loans from the Small Business Administration in your state. And you will attract potential investors more readily with an “established” corporation.
It is critically important that the shelf corporation you are considering not have any inherent or lingering liabilities. For the most part, this can be assured by looking into the history of the corporation and ensuring that the extent of its business activities was limited to the application of an Employer Identification Number and perhaps the formation of a bank account.
The best practices approach is to acquire aged or shelf corporations only from reputable providers (or resellers) who have a history of successful transactions in a given arena. These providers can be counted upon to provide indemnification to the purchaser (a guarantee against pre-existing debts or liabilities) for the sale, and to conduct all of the due diligence prior to offering the shelf corporation for sale.
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