Q. What is a shelf corporation, shelf company, or aged corporation?

A. A company or corporation that has had no activity. It was created and left with no activity - metaphorically put on the "shelf" to "age". The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.


Benefits of an Aged or Pre-Established Corporation:

By owning a pre-established corporate entity, you are able to take advantage of the following benefits:

• Instant availability & fast delivery
• Show longevity of company filing
• Immediately own a company with a filing history
• Ready for immediate transfer as no stock are currently issued
• May help when applying for contracts and financing

The Myths And Truths Of Aged Shelf Corporations

Q. Why would anyone want or need an aged shelf corporation?

A. The number one reason people want an aged entity to improve their chances of getting loans and credit.

The truth about aged shelf corporations is: they don’t ALWAYS help when obtaining financing. In many cases they don’t help at all in the first two years of purchasing the entity. If the individual buying the aged entity doesn’t have an ongoing business they end up with an entity that shows potentially two years age from the incorporation date but no financial history, no credit history and in many cases no business licenses or even Tax Identification Number.

In addition, if you purchase an aged shelf corporation with the intent to obtain financing and credit you can improve your chances of an approval with some trade credit vendors. These are Tier 1 and Tier 2 type credit grantors. They offer trade credit and in some cases require a business be around for 1 or 2 years before they grant credit. The only check they do is to verify the Secretary of State website to see that the entity has been around that long before granting credit. If you have an aged shelf corporation you will likely get approvals from these companies. There are no laws you are breaking because you are not falsifying your income or anything else.


Potential Uses Of A Strong Corporate Credit Rating

• Get the best pricing on products due to a strong credit rating
• Obtain products at 20-30% of retail cost
• Obtain automobiles at a discount and resell for profit
• Distribute products to the public through major retailers


Ways To Build A Strong Corporate Credit Rating

• Obtain established, seasoned existing corporations
• Establish 30-60-90 day net lines of credit with vendors
• Add multiple, seasoned, tradelines to boost score and add creditability
• Establish and develop high balance credit card accounts


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