Executive Summary
When it comes to securing asset protection quickly, accessing contracts or lease agreements without corporate history, or incorporating a company after doing business as a sole proprietor, utilizing a previously formed and seasoned aged shelf corporation can save significant time and money.
A well-formed and maintained aged shelf corporation offers a spectrum of benefits:
Convenience of securing an entity without taking the time to build it from scratch
Seasoning of an older incorporation date creates credibility and enhanced positioning
High levels of asset protection & privacy
However, not all aged shelf corporations are created equal.
Promises of corporate credit lines can also come with future liability attached. If the vendor defaulted on paying state fees at any point during the aging process, it will show on public record — even if these fees are brought current before the transfer.
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While aged shelf corporations are readily available, it is absolutely crucial to know what to look for in a vendor, and what to avoid when buying an aged corporation.
Follow the following guidelines to learn how to buy an aged shelf corporation.
To ensure the aged shelf corporation is truly clean and will immediately serve a client’s needs, seek these critical capabilities in a vendor:
If you answered “Yes” to any of the above questions, read on to explore how buying an aged corporation can save you time and money — and how to determine whether or not you’re dealing with a trustworthy vendor of shelf corporations.
What is an Aged Shelf Corporation?
Simply put, an aged shelf corporation is a company formed and metaphorically placed on the shelf to age. Not unlike a wine tucked safely away in the cellar to mature (and improve) over time, an aged corporation should have no activity beyond the maintenance of state fees to keep the company in good standing during its time on the shelf.
Just the seasoned value of time.
Shelf Corporation Formation & Aging Process Entity Formed (2 days – 6 weeks or more; articles of incorporation & bylaws; effective date stamped) –> Placed on Shelf (1 month – over a decade; state fees kept current) Ownership Transferred (1 day; all articles of incorporation with formation date stamp)
Forming a corporation from scratch varies from state to state, with processing times of 1-3 days to 2-3 weeks or more. While this is a quicker turnaround than in years past, there are situations in which it isn’t fast enough; during the purchase of real estate or the settling of an estate, for example.
Once a transaction is initiated, time is of the essence.
Aged shelf corporations have already been registered with the state they were formed in, with all
Articles of Incorporation and bylaws detailing how the corporation will be governed in order. This means that the aged corporation can be purchased, all articles transferred, and a business bank account established within a single day.
Invaluable Benefit of Time
The older incorporation date that comes stamped on an aged shelf corporation adds the perception of longevity in the marketplace. This seasoning is valuable in creating credibility and the appearance of corporate history, and enhances a company’s ability to position itself to access and bid on contracts, or to obtain leasing agreements. In the case of a contractor who has operated as a sole proprietor for a number of years but now wishes to incorporate, choosing an aged shelf corporation that corresponds to the actual age of the company in question is key. Ensuring that the incorporation age and business age match can tip the scale favorably when it comes to securing potential customers.
Higher Levels of Privacy & Protection
Aged shelf corporations can be registered in any state as a foreign company doing business in that state. And no other state in the U.S. offers higher levels of business privacy than Wyoming when it comes to protecting assets. The first LLC statutes in the United States were instituted in Wyoming in 1977 and updated in 2010 to stay relevant. Buying a shelf corporation that was formed and aged in a state like Wyoming protects not only assets but an individual’s right to privacy as well.
When it Comes to Purchasing an Aged Shelf Corporation, What Should Buyers Look For?
Vendors of aged shelf corporations often list online and can be contacted directly for information and guidance in selecting and purchasing the best fit for an individual’s needs. This easy access is convenient; however, with all the options available, it can be difficult to discern one vendor (and its inventory) from the next.
The rest of this white paper details the key qualities of a truly clean aged shelf corporation, why these qualities are important..
But first: What to avoid
Not Clean?
Not Worth the Risk
A truly clean aged shelf corporation will have no bank account, no tradelines, no corporate credit. It will have no financial history whatsoever.
All Fees Kept Current Throughout the Entire Shelf Life.
Why is this important?
Because an aged shelf company that comes with a financial history may also have pre-existing debt issues and business transactions that could lead to future liability.
If it’s not clean, it’s not worth the risk.
Steer clear of any vendor that cannot guarantee the aged corporation’s fees have been kept current with the state throughout the entire seasoning period. If at any point during this time the vendor has defaulted on paying state fees, it will show on public record.
Corporate credit is not something that can be bought or sold.
A vendor who claims to provide shelf companies with corporate credit built in is not selling a clean corporation.
An aged shelf corporation that has not been kept in Good Standing can face an unexpected uphill slog if it is allowed, at any point in time, to go inactive — even if back fees are paid and the corporation is brought current before being transferred to a new owner.