What is a Shelf Corporation?



It is important to always be on the lookout for ways that your business credit can grow. However, that does not mean you look for shortcuts to get ahead in business. It may backfire on you. You can go the legal away and look for a Shelf Corporations with Credit.

What is a shelf company?

A shelf company is an organization formed to be sold off after it has established a good credit rating. It is also known as a shelf corporation or an aged corporation. Once such as the company has been formed it is put on the shelf for years. The shelf company does not take part in any kind of business and does not have any assets. 

These companies also have an employer identification number (EIN). The shelf corporation can also have filed tax returns. Moreover, they have a business bank account. The business owners go through all these to ensure that the organization looks established and legitimate.

The main reason a shelf corporation is formed is to flip it down to someone else. The person buying the company is always willing to pay the amount of the company due to the age and credit rating of the company. 

Starting a company requires a lot of work. There is paperwork to fill that takes time. That is where a shelf corporation comes in to help. It is a pre-existing corporation that has no activity on the credit profile. The corporation may have been created following the economic requirements; they are not used and allowed to age. 

Once the company’s age, it becomes worthless and has to be bought by a group of people or an individual. An individual who buys the shelf corporation does not have to deal with paperwork. The shelf corporation will help you when you want to start a business but do not have to deal with all the complicated issues.

Purpose of a shelf corporation

There are many reasons why the shelf corporation appeals to many. Some of the reason buyers are attracted to the corporation include:

  • Being able to access commercial credit such as loans without establishing a credit profile
  • It saves time since an individual buys an established company.
  • It helps individuals who want to bid on contract - given that the business has been in existence for long; it means it has a business history. Thus, it can be used to bid on contracts.

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