Scams to avoid when buying shelf corporations

Getting started with a business from scratch can be a daunting task. Business owners and entrepreneurs sometimes wish that if they had a chance to cut all the extra work, they would grab that opportunity with both hands. Well, you have to be hard-working to get the success you desire, but it is your smart work that will make all the difference.

When done appropriately, purchasing shelf corporations with bank accounts will make your life easier by saving time and offering you an edge over your rivals. But how to decide whether or not you need a shelf corp? And what is the concept of aged shelf corporations? Let’s do a deep dive to have a greater understanding of the idea.

In a layman’s language, a shelf company for sale (also known as an aged corporation for sale) is formed with the sole purpose of being placed on the shelf to age. During the time the company is on the shelf, there is no operational activity, apart from the payment of maintenance fees to keep the company in good standing. 

One thing to remember is that a legit shelf company will not have any assets, corporate credit, trade lines, or Employee Identification Numbers. That is is how clean a record a shelf company should have.

Now comes the factor of whether or not you should buy California shelf corporations for sale in the first place! 

Time is one of the most valuable assets when you are about to start a business. If you don’t have the time to create a new entity, it would be an excellent option to look at buying shelf corporations. A reliable vendor will provide you the complete access to Wyoming shelf corporations in a matter of hours. Aged companies already have a registered history in their state of incorporation. What this implies is that the shelf corps for sale can be purchased easily with all articles transferred in your name in no time at all.

The incorporation date stamped on the documents of the shelf corp increases its credibility and offers a feeling of longevity to the customers. If you pair this up with some genuine transactions, then you can dramatically increase the company’s ability to land huge contracts in the corporate world. Hence, when the time factor comes into the fray, your chances of success in the competitive marketplace increase drastically. 

Buying a shelf company with trade lines and financial tax returns

After covering the basics, we know that you have made up your mind about purchasing a shelf corporation with bank account. It would be best if you remembered that you would be able to open the account only later.

A new buyer usually doesn’t know what to expect, especially from the vendor. There are some mistakes that new buyers make, and these are the ones that you will regret later on. When you go hunting for a shelf corporation for sale, you can find plenty of vendors online. You can contact them directly for all the required information. They are also helpful when it comes to identifying your needs and offering you a firm that will be the best fit for your cause. But again, for a person who is new to all this, it can be difficult to distinguish one vendor from the other. Though all of the vendors may appear to be the same to you at first, it is vital to make the right choice.

The first thing to keep in mind when buying shelf companies is that if it is not clean, then it is not worth your time. There is an excellent reason behind this. An immaculate shelf company should not have any track record whatsoever, be it trade lines or corporate credit. Checking its financial history is the ultimate way to ensure that the corporation for sale doesn’t have any pre-existing issues. These can be related to debt and business transactions and can become a liability in the future. 

In addition to that, you should always steer clear of the vendors who promise built-in corporate credit. They are not offering you a clean deal, and therefore, you should not waste your valuable time and money. Another point to consider is whether the target firm is in good standing during its existence. Paying state fees for the corporation on time is a prerequisite. In case of any discrepancies, the company can go inactive, and this is something that you would not like to happen to your business. These are the things that you should take care of before buying the company, not after.

Apart from the issues listed above, there are some other scams too that you need to steer clear off. It is an important aspect that will save you from a loss of thousands of dollars and a bad name for your business. 

Established Credit Scam

Though some tricksters in the market try their best to rob you of your money, you cannot deny the fact that not every vendor is the same. There are plenty who own a legitimate business. However, there are still chances that scamsters may try to attract your attention by making some shallow promises. One such promise they make is that you will get an established line of credit, and this is one of the most prominent scams going on in the marketplace. As mentioned above, the firm in question should not have a credit history, period!. If it does, then it is undoubtedly a scam, and you should run away as fast as possible!  

Personal Guarantor Scam

This scam is used by sellers to defraud many people. In this scam, shelf company sellers will make promises of providing their clients with a personal guarantor and a perfect credit score. Clients usually oblige because, during the initial phase, they are in dire need of funding. You should know that there is no guarantor available, and even if there is, the possibility of the vendor using fraudulent credentials is quite high. Using such firms is a straightforward invitation for legal trouble, and you may end up losing all your assets before you know! 

 

Fraudulent Financials Scam

Some vendors will show documents such as tax returns and bank statements that don’t even exist. The vendor probably forges all these documents to make the firm look good. Engaging in business with such a vendor will land you in a spot of trouble. Fraudulent tax returns are not the way to ease out the process of funding applications. Falling for this scam can again lead to jail time for you in the future!

Data Harvesting Scam

These scams often go undetected. The scammers do not own a website and prefer working on their own. They usually advertise shelf companies at a lower price, and this attracts clients as flowers attract bees. People think that it is a good deal that can save them some money, and end up buying the shelf company. But after some time, they find out that the real owner didn’t sell the company! The owner had no information about the sale of the company, as the scammer did not take his consent. Next up, the owner can sue them for fraudulent practices and seek damages!  So, in your haste to gobble up something at a lower price, you can make a decision that will extract a terrible cost. You may lose all the money invested in the business and more!

From the above scams, there is one lesson you can draw; you should avoid haste, exhibit patience, and choose a reputed vendor. The scams mentioned above can cause you considerable losses in terms of business as well as your reputation. There are certain qualities that you should look for in a vendor before purchasing a shelf company. 

• The vendor should have a multi-state inventory of shelf companies with different vintages. They should help you in choosing the shelf company that fits your needs.
• Prompt service and reachability are the essential components of excellent service. These vendors need to be available for the client via phone or email. They should ensure that all doubts are clarified, before sealing the deal.
• A trusted vendor gives you a guarantee that the shelf corporation that you are purchasing has no previous assets, bank or credit history, as well as trade lines. They assure you that the company has never been used and is clean to the best of their knowledge.
• Clean shelf corporations come with a certificate of Good Standing as well as Certified Articles of Incorporation from the concerned authorities of the state. The paperwork is legit and organized, and you can transfer the company to your name in a short period if need be.

Now that you are aware of all the scams in this sector, you will do well to choose a reliable vendor for purchasing an aged shelf corporation. Doing so will make your entrepreneurship journey a rewarding one!