What is an Aged Shelf Corp?
An aged shelf corp is a company that was created and then put on the “shelf” to age. It has no activity, assets, or liabilities, making it a clean slate for new owners. The benefits of purchasing such a corporation include immediate business history, enhanced credibility, and the potential to secure business contracts and loans more easily.
Benefits of Buying an Aged Shelf Corp
- Immediate Credibility: An older corporation can appear more established and reliable, which can be advantageous when dealing with clients, suppliers, and potential investors.
- Faster Business Operations: Skip the time-consuming process of registering a new company. This can be particularly useful if you need to start operations quickly.
- Easier Access to Credit: Lenders and suppliers may be more willing to extend credit to older entities, as they are often perceived as more stable and trustworthy.
- Contract and Bidding Advantages: Some contracts and government bids require businesses to be established for a certain period. An aged shelf corp can help you meet these requirements without the wait.
- Marketing and Branding: An older business can have a more established brand presence, which can help in marketing and building customer trust.
How to Find an Aged Shelf Corp for Sale
- Research Reputable Providers: Start by looking for companies that specialize in selling aged shelf corporations. Ensure they have a solid reputation and positive reviews. Some well-known providers include:
- Corporate Services Companies: These firms often have a wide range of aged corporations for sale, complete with documentation and support services.
- Business Brokers: Brokers specializing in corporate sales can also be a valuable resource.
- Online Marketplaces: Websites like BizBuySell or even specialized forums can list aged shelf corporations for sale.
- Verify Legitimacy: Check the legitimacy of the corporation, including its incorporation documents and any history of activity. Ensure it has been maintained properly with all required filings up to date. This includes:
- Articles of Incorporation: Verify the authenticity and ensure the corporation was legally established.
- Annual Reports and Taxes: Ensure all filings and taxes are current to avoid inheriting any liabilities.
- Certificates of Good Standing: Obtain a certificate of good standing from the state or country of incorporation.
- Compare Prices: Prices for aged shelf corps vary based on age, jurisdiction, and additional features like tax IDs or bank accounts. Compare offerings from multiple providers to find the best deal. Be wary of prices that seem too good to be true, as they may indicate hidden issues.
- Seek Professional Advice: Consult with legal and financial professionals to understand the implications of purchasing an aged corporation, including potential liabilities and compliance requirements. A professional can help you navigate the complexities and ensure you make an informed decision.
Key Considerations Before Purchasing
- Jurisdiction: Consider the state or country where the corporation is registered, as this will affect regulatory requirements and benefits. Some jurisdictions are more business-friendly than others in terms of taxes and regulations.
- Age of the Corporation: Older corporations generally cost more but offer more credibility. Decide how much age you need based on your business goals. Typically, corporations older than five years are considered highly credible.
- Clean History: Ensure the corporation has no hidden liabilities or previous business activities that could pose a risk. Conduct a thorough background check, including credit reports and legal searches.
- Maintenance Fees: Be aware of any ongoing fees required to keep the corporation in good standing, such as annual reports or franchise taxes. Some states have higher fees than others, which can impact your overall costs.
- Name Changes: You may want to change the name of the aged corp to better fit your business. Ensure the process for name changes in the jurisdiction is straightforward and does not affect the corporation’s age or status.
Steps to Purchase an Aged Shelf Corp
- Select a Provider: Choose a reputable provider with transparent terms and a solid reputation. Look for reviews and testimonials from previous buyers to gauge reliability.
- Review Documentation: Carefully review all provided documentation, including the Articles of Incorporation, bylaws, and any certificates of good standing. Ensure there are no discrepancies or red flags.
- Transfer Ownership: Follow the provider’s process for transferring ownership, which may include filing paperwork with the state or country of incorporation. This process typically involves:
- Signing Transfer Documents: Legal documents transferring ownership must be signed by both parties.
- Filing with Authorities: Submit the necessary paperwork to state or country authorities to officially record the change of ownership.
- Updating Records: Update the corporation’s records to reflect the new ownership and any changes in officers or directors.
- Update Records: Once the purchase is complete, update the corporation’s records to reflect the new ownership and any changes in officers or directors. This may include:
- Bank Accounts: Set up or transfer existing bank accounts to the new ownership.
- Licenses and Permits: Ensure all necessary business licenses and permits are updated.
- Internal Records: Update internal corporate records, such as meeting minutes and resolutions.
Potential Pitfalls to Avoid
- Hidden Liabilities: Thoroughly investigate the corporation’s history to ensure there are no undisclosed liabilities or debts.
- Compliance Issues: Ensure the corporation has complied with all regulatory requirements to avoid fines or penalties.
- Overpaying: Be cautious of overpriced shelf corporations. Compare multiple options and seek professional advice to ensure you’re getting a fair deal.
- Scams: Be aware of scams and fraudulent sellers. Always verify the legitimacy of the provider and the corporation.
Conclusion
Purchasing an aged shelf corp can provide significant advantages for your business, from immediate credibility to easier access to credit. By following the steps outlined in this guide and conducting thorough due diligence, you can find a reputable aged shelf corp for sale that aligns with your business needs. This strategic move can help you jumpstart your business operations and position your company for success in a competitive market.