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Shelf Corporations Uncensored
Shelf corps or shelf corporations are typically corporations that have been left on the "Shelf" to age. Typically, individuals purchase shelf corporations to
1. Have access to credit that they would not have access to with and brand new corporations.
2. Have the ability to apply for government contract. Some contracts require companies that are two years and older.
When looking for aged corporations you will realize that there are law firms that sell shelf corporations as well as shelf corp vendors. Many of the shelf corp vendors who claim to sell shelf corps and build business credit with them are scammers. In 2010, it is impossible to get $150K in no personal guarantee credit with one corporation. So if you see anything like this being advertised, you must know it's a scam.
Typically, 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 will have to get more that one corporation. These lines of credit can be gotten in as little as 2 weeks if done properly. Due to the lowered range of business credit being acquired with shelf corporations, you may want to take a serious look at how much you are paying for a shelf corporation. I suggest that you do not pay for than $4000 for a shelf corporation with an established credit file and more than $3000 with one without a paydex.
What you need to know about shelf corporations is that most of the shelf corporation providers do not sell actual shelf corporations. They acquire corporations that are now out of business, reinstate them and sell them. The thing is, these corps cost the reseller $150-$300 and are being resold for $2000+. It will be difficult for me to explain everything in this one article but I will cover as much as I can in the little space I have.
Basically you have to go to the state that you are interested in Secretary of State Website and look up corporations that have to pay their state fees. You then check the credit of the corporation that you will like to acquire to ensure that there is either good credit or no bad credit (depending on if you simply want a shelf corporation with a good paydex score or a clean aged corp). Once you have identified the corporation that you want, you will want to then contact the previous owner of the corporations and have them agree to transfer the corp to you.
This process is simple but there are two parts of the process that is a bit tricky. First, checking the credit at an affordable price is a challenge. You pay DnB $100+ for a full DnB credit file of the specific corporation. The other tricky part to the process is getting the owner to sign the company over to you. I have covered both of these topics in two of my ebooks. My blog also has loads of free, valuable information on building business credit from the ground up.
In concluding, buying a shelf corporation is something that can be very beneficial in building business credit quickly. Simply be very careful who you buy it from and consider how much you pay for it.
About the Author
My name is Marc Augustsine, Author of the The Elite Guide to Business Credit, Business Credit Made Easy, Shelf Corp Magic, The Business Credit Bible and Shelf Corp Secrets and owner of http://creditrich.net
Off The Shelf (Let's Play): God of War 2 [PS2] - Part 8: Set Prometheus Free