Shelf corps or shelf companies are usually companies that have been left on the “shelf” age. Usually, people buy shelf companies
1. Have access to credit, which they would not have access to a brand new company.
2. Have the ability to apply for public contracts. Some contracts require companies that are two years or older.
When looking at the age of companies that you will understand that there are law firms that sell shelf companies as well as shelf CORP vendors. Many of shelf Corp suppliers that claim to sell shelf Corps and build business credit, they are scammers. In 2010, it is impossible to get $ 150k in no personal guarantee credit with one company. So if you see something like this being advertised, you must know that it is a scam.
Usually, you will be able to get 20K-50K (50K is a little stretch) in no PG cash business credit with one corporation so if you are looking for more than this, you get more than one corporation. These credit lines can get in as little as 2 weeks if done properly. Because of the reduced range of business credit is purchased with a shelf company, you may want to take a serious look at how much you are paying for shelf companies. I recommend that you do not pay for the $ 4,000 for a shelf company with an established credit record and more than $ 3,000 with one without paydex.
What you need to know about shelf companies is that most of shelf companies providers do not actually sell shelf companies. They acquire companies that are now out of business, reinstate them and sell them. The thing is, this corps cost reseller $ 150 $ 300 and are resold for $ 2,000 +. It will be difficult for me to explain everything in this one article I will cover as much as I can in a small space I have.
Basically you have to go to the state that you are interested in Secretary State Website and look up companies that have to pay the state their charges. You check the credit of the company that you will like to have to ensure that it is either good credit or bad credit not (depending on whether you simply want a shelf company with good paydex score or absolute age corp). Once you have identified the company that you want, you will want to contact the previous owner of the company and have them agree to move corp you.
This process is simple but there are two parts of the process is a bit tricky. First, check your credit at an affordable price is a challenge. You pay DNB $ 100 + on a full DNB credit file of a particular company. The tricky part to work is to get the owner to sign the company over to you. I’ve covered both of these substances in two my books. My blog also has plenty of free, useful information about building business credit from scratch.
In concluded that buying a shelf company is something that can be very useful in building business credit quickly. Simply be very careful who you buy it from and consider how much you pay for it.