Shelf corporations or shelf corporations are typically corporations that have been left on the “shelf” to age. Typically, individuals buy joint stock companies to

1. Have access to credit that they would not have access to with new corporations.

2. Have the ability to apply for a government contract. Some contracts require companies that are two years old or older.

When looking for legacy corporations, you will find that there are law firms selling shelf corporations as well as shelf corporation vendors. Many of the shelf corporation vendors who claim to sell shelf corporations and create business credit with them are scammers. In 2010, it is impossible to get $ 150K in personal unsecured credit with a corporation. So if you see something like this being advertised, you should know that it is a scam.

You will usually be able to get 20K-50K (50K is a bit of a stretch) with no PG cash business credit with a corporation, so if you are looking for more than this, you will have to get more than one corporation. These lines of credit can be obtained in as little as 2 weeks if done correctly. Due to the narrowing of the range of business credit that is acquired with corporations, you may want to take a serious look at how much you are paying for a corporation. I suggest you pay no more than $ 4000 for a shelf corporation with an established credit file and no more than $ 3000 with one with no pay rate.

What you need to know about shelf corporations is that most shelf corporation vendors do not sell actual shelf corporations. They acquire corporations that are now bankrupt, reinstall them, and sell them. The thing is, these bodies cost the reseller between $ 150- $ 300 and are resold for $ 2000 +. It will be difficult for me to explain everything in this article, but I will cover as much as I can in the little space I have.

Basically, you have to go to the state you are interested in on the Secretary of State website and look for corporations that have to pay their state fees. Next, you check the credit of the corporation you would like to acquire to make sure there is good credit or no bad credit (depending on whether you simply want a corporation with a good paydex score or an aged and clean corporation). Once you have identified the corporation you want, you will need to contact the previous owner of the corporations and have them agree to transfer the corporation.

This process is simple but there are two parts of the process that are a bit complicated. First, checking credit at an affordable price is challenging. You pay DnB $ 100 + for a full DnB credit file of the specific corporation. The other tricky part of the process is getting the owner to hand over the business to you. I have covered both topics in two of my e-books. My blog also has a lot of free and valuable information on how to build business credit from scratch.

To conclude, the purchase of a corporation is something that can be very beneficial to generate business credit quickly. Just be very careful who you buy it from and consider how much you pay for it.