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FREQUENTLY ASKED QUESTIONS:

 

WHAT'S A SHELF CORPORATION?

A shelf corporation is a company that was formed before you acquired it.  The purpose is to provide a competitive edge for the entrepreneur who acquires the shelf company.  It's a company placed "on the shelf" for the purpose of immediate availability and start-up.  An aged shelf corporation is company that was aged for one or more years, with the objective of immediate credibility and access to the buyer.

 

WHY PURCHASE A SHELF CORPORATION?

A shelf corporation provides the following advantages:

 

• Opens doors to bidding opportunities that are closed to younger companies
• Creates immediate credibility because of the age of the company
• Customers, lenders, and investors prefer to do business with an established company
• Age enhances the company's position in the marketplace
• Customers have less objections when the perception appears that the company is established
• Lenders prefer to extend credit to companies that are at least two years old rather than newer ones
• Clients prefer to buy and contract with companies that will be there next year
• Age implies stability and long-lasting relationships.

 

Limited Liability:  An aged shelf corporation will protect the stockholders from the liabilities of the corporation.  Aged shelf corporations offer the same protection as a new corporation.  The age of the company does not enhance the protection.  The benefit of an aged corporation remains with the access to financing, quick access, and instant credibility.

 

HOW MUCH CREDIT IS POSSIBLE WITH AN AGED SHELF CORPORATION?

 

Many business owners are obtaining financing in the amount of $100,000 or less.  Any claim that a buyer, of a shelf corporation, is able to obtain more than $100,000 in financing is probably not telling the truth.  Building any corporate credit is like climbing a ladder; it takes time and effort.

 

DO I NEED A REGISTERED AGENT?

 

Every company needs a registered agent.  You are able to serve as a registered agent in the state in which you live.  For example, you may serve as a registered agent for your Montana shelf corporation in Montana.  If you don't live in Montana, then someone in Montana must serve as your registered agent.  If you file that Montana shelf corporation in the state in which you live (i.e. California), then you're able to serve as the registered agent in the state of California, for the foreign registration.

 

WHAT ARE THE BEST STATES TO OBTAIN AN AGED SHELF CORPORATION?

 

Montana, New Mexico and Wyoming are the best states to obtain an aged shelf corporation on an aged shelf LLC.  Why?  These states don't ask for a business license.  As such, you are considered the first owner of the company since there are no previous owners registered.  A change of ownership resets the age of the company, in terms of applying for corporate credit.  If you acquire an aged shelf corporation from Wyoming or New Mexico, there is no change of ownership.  These states don't collect information on the owners of the company.   As a result, there's no change of ownership reported.  The age of the company remains the same.

 

ARE MONTANA SHELF CORPORATIONS JUST AS GOOD AS THOSE FROM NEVADA?

 

Banking in Nevada is difficult and troublesome because of the transients and the widespread fraud.  Likewise, the audit rate for Nevada corporations is four times the annual average for the same company elsewhere.  This is because Nevada continues to promote that they have information sharing agreement with the IRS.  What is the truth?  Nevada sells their information to database companies, which sells the data to the IRS.  And what does it matter to you?  Acquiring a shelf corporation and building corporate credit requires that your name is on the company.  It requires that you're the applicant for the EIN and the applicant for the bank account.  There's no privacy from the IRS.  And yet, promoters of Nevada corporations still tout this bogus benefit.