Should You Use a Shelf Corporation?
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- Опубликовано: 17 июл 2024
- Shelf Corporations make some pretty substantial claims about helping your business grow, but are they true? In this training we break down everything you need to know about Shelf Corporations and the pros and cons of using them to start a new business.
Training Resources:
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Free Business Credit Building Guide: crdt.st/ud520
Take the FREE Fundability™ Mini-Course: crdt.st/udIpZ
Schedule Your Business Financing Assessment at: crdt.st/udBRI
Key Moments:
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0:00 - What We're Covering
0:33 - What Are Shelf Corporations
1:08 - Are Shelf Corporations Beneficial?
2:09 - Should You Use a Shelf Corp
5:04 - Can You Get Funding with a Shelf Corporation?
6:26 - Long-Term Effects of Using Shelf Corporation?
7:50 - Explore Better Options!
#shelfcorporation #fundability #businesscredit
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Respectfully speaking, this is the same rhetoric thats says theres no easy way to fix your credit, other than paying down the debt. This is not true, i have and have had plenty of friends purchase Shelf corp and receive funding. However you cant just purchase a shelf corp, and then go to the bank for funding......there are steps.
Thank you for your comment @andresawyer. A shelf corporation, also known as an aged corporation or ready-made company, is a legal entity that has been incorporated but has not conducted any significant business activity. These corporations are often pre-registered by specialized companies and then sold to individuals or businesses looking for a shortcut to establish a company with a prior incorporation date.
Shelf corporations are typically created for the purpose of being sold later on, allowing the buyers to acquire a company with an established registration date. This can be advantageous in certain situations, such as when a company wants to project an image of longevity or when it wants to bypass the time-consuming process of starting a new company from scratch.
However, it's important to note that shelf corporations MAY NOT have active bank accounts, assets, or business operations. They are essentially dormant entities waiting to be purchased and utilized by new owners and that is why we don't recommend buying it for the purpose of Business Credit & Financing.
It's crucial to thoroughly research and understand the implications before deciding to purchase a shelf corporation, as there can be disadvantages and limitations associated with these types of entities. Hope this helps.
Exactly lol
Facts
@@CreditSuiteSince your talking about fdic member banks retail consumer accounts are setup via algorithm underwriting. Tada 🎉
Thank you for helping me save thousands of dollars
We're happy to hear that!
How about your own shelf corporation? I know my boss used to have multiple shelf corporation aging for year or two. Then start using them later. After year or two. He did not bought them he start them from scratch and just build them up.
Thanks for watching our video. If the shelf corporation does not have any history of business credit you would really need to build it from the ground up as if it's a new business. With your boss situation, if he's the owner it won't re-age since there was no chance of ownership of the business but he has to build credit from scratch.
What if you reopen one of your old companies after the government dissolve it for not filing the annual reports ?
We need more on this video you got one person on here giving this information and another saying the opposite to buy them
Thank you for watching and for the feedback!
what about "credit ready" shelf corps?
Thanks for watching @brianwick. It may be beneficial to look into credit ready shelf corporations however, there are potential drawbacks associated with this kind of setup. Before purchasing a credit ready shelf corporation, it's best to research the company thoroughly. Make sure that the existing line of credit is in good standing before taking on any debt and that the company has a solid financial history.
So what if I bought a aged corp from another state... But I want it registered somehow in my state without losing age. I just want my address for credit bureau and mailing. Do i lose age of business for foreign entity filing? It's not reflected as new owner, but as cfo as me and my other state address
I took over the company
Great question! When you register an aged corp from another state as a foreign entity in your state, it typically doesn't lose its age. The corporation's original formation date remains the same. By registering as a foreign entity, you're simply allowing the business to operate in your state while maintaining its original formation details. However, always double-check with your state's regulations and consult a legal professional for guidance on your specific situation. Good luck with your aged corp!
How to buy one and turn it into an advantage ?
We don't recommend buying shelf corporation because once you acquire one it's business credit history re-age with the new owner so for that reason lenders and credit issuers will still treat it as new business. It's best to just start a new business entity and then build it's business credit from scratch
Shelf is the same as trust?
Thanks for watching our video. They're different. A shelf corporation, shelf company, or aged corporation is a company or corporation that has had no activity. With this video, it's not best to acquire a business that's been dormant, it's better to just start a business from scratch and build it's business credit.🙂
What about reinstating one of my old companies that was dissolved for not filing the annual reports ?
20 years ago !
You can reinstate an old company. Procedures and requirements may vary depending on the state and the circumstances of the company's dissolution. It is recommended to consult with legal and tax professionals for personalized guidance.
Your really miss guiding people but you don’t know. You get a shelf corp with no EIN and unpublished. Also you want to predate in your book of minutes a statement. No need to get it notarized. Trust me my mentor was a banker for 20 years.
Thank you for sharing your perspective. While it's important to consider various viewpoints, our video aims to highlight the potential risks and drawbacks associated with buying shelf corporations. We encourage entrepreneurs to carefully research and consult professionals before making such significant decisions for their business ventures.
Considering various viewpoints yesWhat you lack to do. After telling them that you should have told them “well to avoid this you can do this”. Now you got people avoiding shelf, corporations like the plague lol
So every time Nokia changed owners in the past 100 yrs they treated it like a new business?
Not if the new owner is within the same organization and the company continue it's operation. Shelf corporation is an existing company that's been dormant and therefore no business activities. To the eyes of the Lenders, it's good as a start-up and the time in business resets with the new owner.
@@CreditSuite buying a 10 year aged Corp. and then doing good profitable business for 2-4 years. Is going to still give me no advantage? (Come the day I eventually go for funding or government contracts)
That doesn't work either you just talking to be talking
What is not working?