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SHELF COMPANY + BUILD BUSINESS CREDIT = SUCCESS

SHELF COMPANY + BUILD BUSINESS CREDIT = SUCCESS

Shelf Company Advantages:

What comes with your clean, aged shelf company?

  • A new, unused company that is in good standing and has not been dissolved

  • No Employer Identification Number (EIN), indicating that the company is free from debt and liabilities.

  • Filed articles of incorporation/organization

  • Certificates of good standing

  • Registered agent service for the next year

  • Operating agreement/bylaws

  • Company resolutions

  • We update the public record so the Principal and the new business address is clearly seen when the lender checks the Secretary of State.

Demonstrating stability

Both businesses and individuals typically prefer to work with established companies rather than new ones. This is a common principle. For example, if you were considering hiring a company to remodel your kitchen, would you prefer one that has been in business for five years or five weeks? The answer is likely the former. Having an older, established corporation or LLC can enhance the credibility and perceived stability of your business.

Obtaining larger amounts of credit for your business

When other factors are similar, the length of time a business has been established is a crucial element in determining whether it will be approved for funding or not. From a lending perspective, who would you be more likely to lend money to?

Gaining access to bidding opportunities

Government agencies and contractors often put out calls for bids, and one of the requirements is often the age of the company. A company that has been around for a longer period of time may have an advantage in these situations. This is only helpful if you’re compliant and honest in the bidding process. You may need to admit that you acquired an existing company, which is normal in many instances.

Older Businesses Are Favored By Landlords

Due to the high number of defaults on commercial and industrial rents caused by the Covid-19 pandemic, landlords are becoming more cautious and hesitant to lease to businesses that are less than three years old. Having an older, established company can help overcome this objection and increase the chances of securing a lease for a desirable retail or commercial space.

Begin On A Strong Foundation With An Aged Shelf Company

The age of a company plays a crucial role in the success of a small business, as it can influence customer and lender confidence, marketing image, and revenue. It affects every aspect of the business. Having an older, established company can provide a solid footing for the business.

The age of the company influences sales, leading to increased bank deposits, and impacts financing directly and indirectly.

How To Order An Aged Shelf Company

  • Ask for the list of shelf companies at Assetprofile@gmail.com

  • Email us the first and second choice from the available list of clean aged shelf companies.

  • Receive and then complete the order form and registered agent form. The order form is how you pay.  The registered agent form provides the information, so we update the public record accurately, according to your wishes.  The company is reserved for two business days.

  • You receive the documents via email within a business day and via mail within a week.

We accept Mastercard, Visa, American Express and Discover Card.

Aged Shelf Companies That Are Immediately Available

  • Prospective clients tend to prefer doing business with a company that is two years old rather than one that has only been around for two weeks.
  • Credibility and stability is enhanced when it comes to your marketing strategy.

  • Starting a business becomes more convenient when you have a corporation or LLC that is readily available.

  • You can also benefit from increased contract opportunities and in building corporate credit.

  • Additionally, having a pre-existing company can give you the added benefit of limited liability in your business affairs, which we refer to as asset protection.

  • Enhance the choices in business loans by clearing the three-year hurdle on company age.

When Should You Begin Establishing Corporate Credit?

What Should You Consider When Searching For An Aged Shelf Company For Sale?

  • The company should be free from liabilities

  • The seller of the pre-existing corporation or LLC should provide a guarantee that the company is clear of any liabilities

  • The company should have no previous owners

  • There should be a wide range of companies to choose from

  • The price should be reasonable

Who Should Be The Corporate Officers?

When applying for corporate credit, lenders will typically require that you serve as the Director and Officer of the company.

What Actions Should You Take Regarding Registering The Company In Your Home State?

  • File the company in your home state, and act as the registered agent for the company. The registered agent serves as the point of contact for the company in case the government or court requests information about it.

  • Register the company in your home state as a foreign LLC or foreign corporation.  This is also referred to as foreign qualification, or foreign qualifying the company.

  • Make certain that the shelf company reports the same information to the state where it was filed and to the state where it will be filing as a foreign entity.

  • For example, if the company was filed in New Mexico, then the New Mexico Secretary of State should display the same information online as the state where you seek to do business as a foreign entity (other state such as California, Florida, or elsewhere. Lenders seek to validate that you have the authority to open and use accounts through the public record, and they will compare publicly sourced information to the information on the lending application. Make sure that all public points of available information report the same and consistent information as to who is the Manager of the LLC (or corporation), and the address of the company.

  • Lenders like consistency.  A lack of consistency backfires through a rejected loan application.

Privacy Is Not Compatible With Business Credit

  • Privacy and corporate credit may not be able to be obtained simultaneously from the same company. Our shelf companies for sale can provide business owners with access to capital, but we do not offer privacy services.

  • No, your interest in the company will not be hidden when applying for corporate credit. Financial institutions need to know your connection and interest in the company before lending money. Therefore, when you apply for corporate credit, you need to disclose your interest in the company to the bank. Your name must be on the public record and you cannot use a “nominee” as Director or President for the purpose of hiding your interest in the company.

  • Yes, when applying for an Employer Identification Number (EIN) from the IRS, you will need to use your own social security number on Form SS-4. This is required by the IRS. You can find instructions and more information on the IRS website (IRS.gov). It’s important to note that it is not possible to use a nominee’s social security number for the EIN application.

Taxes

  • Using a pre-existing company, commonly known as a “shelf company,” will not necessarily result in any tax savings. The lender will typically require that you file the pre-existing company in your home state before applying for financing. The tax savings for a pre-existing company are no different from any other newly incorporated business. It’s always best to consult with a tax advisor for advice. Don’t buy an aged shelf company to save taxes.

Business Licensing

  • When it comes to obtaining a business license, it’s important to check with the appropriate authorities to determine what licenses may be required for your specific business. The website BusinessLicenses.com can be a helpful resource in this regard.
  • It’s important to note that first, you need to file the company in your state as a foreign corporation and then apply for the applicable business licenses.  As a rule, file the aged shelf company in the state where you seek to do business, and then with the county and city where it is located.

After Obtaining A Company, Some Of The Key Steps You Should Take Include:

  • Applying for an Employer Identification Number (EIN) from the IRS, which is a unique identification number assigned to your business for tax purposes.

  • Registering to do business in the state in which you plan to operate.

  • Obtaining any necessary business licenses and permits at the local or state level.

  • Building the company’s credit by obtaining business credit cards and loans and paying bills on time.

  • Applying for financing, such as a business loan or investment, to help fund the company’s growth and operations.

  • Reviewing and updating all legal and compliance documents, such as the articles of incorporation, bylaws (corporation), or the operating agreement for the LLC.

  • Yes, you can convert a corporation to an LLC or an LLC to a corporation. However, it is important to note that lenders will likely consider this a new company and may require you to re-apply for credit.
  • The time it takes to build corporate credit can vary depending on a number of factors, including the size and financial stability of the company, as well as the owner’s personal credit history. Generally, it can take 4-6 months to build corporate credit if you have good credit.

  • You can select any business name as long as it is not already in use by another company and does not infringe on any existing trademarks. However, it is important to note that using certain words in your business name, such as “Funding,” “Investment,” “Holding,” “Capital,” or “Real Estate,” may be subject to additional regulations and oversight.

  • You should also ask about the company’s history, as some aged shelf companies may have been acquired from other providers.

  • If you have bad credit, it can take 1-3 months to repair your personal credit, and then an additional 4-6 months to build corporate credit for the company. However, the time frame can be shorter depending on the severity of the bad credit and the actions taken to improve it.

  • It is important to inquire whether an aged shelf company, or a pre-existing company that is being sold, was consistently in good standing. Some providers may sell companies that are over five years old, but these companies may have been dissolved in the past and may have a history of not being in good standing. This can result in the company being “red flagged” by lenders or credit rating outfits, making it difficult to obtain financing.

  • It is best to work with a reputable provider that can assure that the aged shelf companies they are providing are home grown and were never dissolved. The provider should be able to show that they file the corporations and LLCs themselves, maintain them in-house, and ensure that they are always in good standing. This will result in a quality company that you can rely on to build corporate credit.

Why Aren’t Our Companies Listed Online? We Prefer To Email You The List.

  • There are a few reasons why a provider of aged shelf companies may not publish the names of their available companies online. One reason is to respect the privacy of their clients and their affairs. Acquiring an existing company is a business decision and the provider may not want to claim to the world that these entities are for sale.

  • Another reason is that publishing the list of available aged shelf companies online can create competition among potential buyers and may not work in the best interests of clients. Providers may prefer to email a list of available companies to interested buyers and let them reserve the choice to tell others whether they acquired an aged company or not. This way, the client can have more control over the information and can avoid any unwanted attention or competition.

  • Additionally, it is not a good idea to create an online listing of aged companies that can be easily found by search engines. This could lead to unwanted attention or competition.

Shelf Company Fraud: Watch Out For Bad Companies

  • It’s important to be cautious when buying an aged shelf company as fraud can occur with fake and fraudulently reinstated shelf companies. One type of fraud to be aware of is when an incorporator reinstates a corporation without the original owner’s consent. This is not a legitimate reinstatement, and the bank or financial institution will not honor the age of the shelf company from the date of incorporation. Instead, the bank will consider the age of the company to have restarted from the date of reinstatement. This means that a 100-year-old company’s age is actually one year if it was reinstated one year ago.

  • A scammer may reinstate an expired company without the permission of the proper owners, and then sells the company to unsuspecting buyers. This is illegal and can result in criminal charges such as mail fraud and wire fraud. Additionally, applying for an EIN and opening a bank account under a company that doesn’t belong to you is a felony and may result in federal consequences.

  • It’s important to work with a reputable provider who can provide legitimate aged shelf companies and disclose any information about the company’s history and age accurately. It’s also important to do your own research on the company and consult with legal and financial advisers before making a purchase.

  • Ask the seller for a copy of their photo ID.  A scammer will not provide you a photo ID.