Incorporating a business can take months to process. If you don't have this kind of time, or simply don't want to deal with the paperwork of starting an LLC or a corporation, buying a shelf corporation is a valid alternative. These companies are legally formed by a third party but have no activity — they’re essentially left on the shelf. If you want an established corporation without the hassle of starting one yourself, you might consider purchasing one.  The following guide will give you a deeper understanding of the benefits of these aged corporations. 

How Are Shelf Corporations Created?

To start a shelf company, a business name must first be selected. This is done by searching the secretary of state website for the state where the corporation will function to find a name that is available. Next, the company is registered with the secretary of state's office as either a corporation or LLC. Articles of incorporation and bylaws are then filed with the business division. 

In some instances, the corporation will come with an employee identification number (EIN), bank accounts, business licenses, and trade lines These are added to establish and build credit history; however, in some instances, this can make the company a risky buy because they could owe back taxes. 

What Are the Benefits of a Shelf Corporation?

There are many reasons to buy a shelf corporation, but the most common one is to show corporate longevity. In many instances — such as bidding on contracts and working with leasing companies — your corporation may be required to be in business for a minimum amount of time. Additionally, while you might have built up years of experience as a sole proprietor, new consumers and investors will be less inclined to work with a new corporation.

Having a built-in history also allows you to claim corporate credit loans and open lines of credit with suppliers. Building a positive credit profile with these partners will help to open other credit opportunities. These funds can often be the difference in the future success of a new business.  

If you’re interested in purchasing a shelf corporation, turn to Quick Shelf Corps in Jacksonville, FL, Atlanta, GA, or anywhere in the U.S. They have quality corporations available that have been established for three to six years at under-market rates. Call them today at (888) 492-5853 to receive a free consultation, and visit their website to learn more about the benefits of this purchase.