A shelf corporation, also known as an aged corporation or a vintage corporation, is a pre-existing, dormant corporation that has been formed but has not yet engaged in any business activities. These types of corporations are typically created and then put “on the shelf.” Then someone can purchase one for a specific purpose. The same is true for a shelf limited liability company (LLC).
Why Form a Shelf Corporation
There are several reasons why someone might choose to use a shelf corporation rather than forming a new one. One reason is to establish a longer business history. When you form a new corporation, it has no history and must start building a track record from scratch. This can be a disadvantage when it comes to things like securing loans or contracts. That is, lenders and clients often prefer to do business with established companies that have a proven track record. By using an aged company, you can instantly have a corporation with a longer business history. Operating one can make it easier to establish credibility and trust with potential clients and partners.
Another reason someone might choose to use a shelf corporation is to for asset protection from lawsuits. Incorporating a business creates a legal separation between the business and its owners, which can help to shield the owner’s personal assets from creditors or legal action taken against the business. By using a shelf corporation, you can take advantage of this legal protection without having to go through the process of forming a new corporation from scratch. It also shows that you didn’t just create a new corporation or LLC last minute to protect your assets.
What to Watch For
It’s important to note that there are some potential risks associated with using a shelf corporation. As such, our our origination has taken action to help prevent these potential dangers. One risk is that the corporation may have pre-existing liabilities or legal issues that you are not aware of. It’s important to thoroughly research and complete due diligence. You want to be sure that any shelf corporation you are considering using to ensure that it is a viable option for your business. Our organization forms most of our own companies and put them on the shelf to age. Thus, such companies do not have that inherent risk because they have never conducted business.
How to Buy a Shelf Corporation
There are a few different ways to obtain a shelf corporation. The fastest way is to obtain a one is to purchase one that someone has already formed and put on the shelf. There are a few companies that specialize in selling shelf corporations, including our own. It’s important to carefully research any company you are considering working with. You want to be sure that they are reputable and can provide you with a quality product. You can see our list by clicking on the “shelf corporation” link in the first paragraph of this page.
What to Pay Attention To
When purchasing a shelf corporation, it’s important to pay close attention to the age of the corporation or LLC and its business history. Aged corporations and LLC, or corporations and LLCs that have been formed for several years, may be more expensive. However, can also offer a longer business history and more credibility. It’s also important to consider the state in which the corporation was formed. Some states may have more favorable corporate tax rates or other benefits.
Conclusion
In conclusion, a shelf corporation can be a useful tool for businesses. You can use one if you want to establish a longer business history. A corporation or LLC can protect their personal assets. You may also be able to take advantage of tax benefits. However, it’s important to carefully research and due diligence. Make sure that any existing corporation or LLC you are considering using to ensure that is a viable option for your business.
