Please sign in to post in this forum.

This Question is Possibly Answered

1 "correct" answer available (5 pts) 2 "helpful" answers available (4 pts)
Post a new topic
8 Replies Last post: Sep 16, 2008 5:41 PM by loan guy

Off-the-shelf corporations, are they real?

Jan 16, 2009 9:17 AM

Click to view luv4freedom's profile Professional luv4freedom 7 posts since
Jan 14, 2009

While looking for financing for my start-up business, I came accross "off-the-shelf corporations". All of them charge an upfront fee and claim you get an established corporation with good credit. This seems to be aimed for people with bad credit. Is this a good alternative for startup, no collateral or perfect credit?
Report as inappropriate
Click to view LUCKIEST's profile SCORE LUCKIEST 7,932 posts since
Aug 6, 2007
1. Re: Off-the-shelf corporations, are they real? Jan 16, 2009 10:25 AM
in response to: luv4freedom
Off-the-shelf corporations, Welcome Yesenia

Everybody in business (or going into business) should have a Lawyer and an Accountant.

The other suggestion is to contact SCORE. SCORE is FREE both in person and online.

Good luck, LUCKIEST
Click to view caffeinated's profile Mogul caffeinated 175 posts since
Apr 29, 2008
2. Re: Off-the-shelf corporations, are they real? Jan 16, 2009 11:05 AM
in response to: luv4freedom
When I read the phrase "off-the-shelf corporations," franchises come to mind. Are they two very distinct things?

caffeinated
Click to view luv4freedom's profile Professional luv4freedom 7 posts since
Jan 14, 2009
3. Re: Off-the-shelf corporations, are they real? Jan 16, 2009 1:15 PM
in response to: caffeinated
Yes. To the best of my knowledge: A company that sells off-the-shelf corpoporations sets up multiple corporations. They start building credit on them. So when a new business owner is in need of financing they sell them these pre-made corporations with established credit. Apparently making it easier for the new business owner to optain loans. I've seen them run from $800-3,500. Now, to me it seems something that is possible. My fear is giving these companies a large amount of money and ending up with nothing!
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
4. Re: Off-the-shelf corporations, are they real? Jan 16, 2009 2:19 PM
in response to: luv4freedom
The attorney in the office next to me creates "shelf aged corporations" (also called "seasoned" companies) and sells them (lots of corporate agencies and attorneys do).

Basically, the founder sets up a legal corporation, gets a virtual office and phone number, opens accounts with a few suppliers, maybe files for a DUNS number, etc. -- but doesn't really do any business (the corporation "sits on the shelf"). He'll take care of state filings, tax returns, and all of that as required every year. Over time, the corporation will build a credit history by simply staying in business and not having any bad marks. So, in general, the older the corporation is and the more was done over the years to make it look like a solid, well-established enterprise, the more "valuable" it is and the more that the attorney will be able to sell it for -- which is where the up-front fee you mentioned comes in.

So unless whatever enterprise you are considering would need to look like a solid, well-established enterprise from day one -- and it would be worth it to you to buy the aged entity from the person who set it up -- then there's no benefit. You'll build a brand new company's credit in the same way he did over time, and in most cases, it would be more logical to use your money to capitalize the firm. However, let's say you were positive that you could bid on and win a government contract, yet the RFP for the job stated that bidders "must have been listed with D&B for at least five years" or something similar. Then buying a shelf aged corporation that met the requirement might make sense.

Hope that answers you question. Best wishes.
Click to view luv4freedom's profile Professional luv4freedom 7 posts since
Jan 14, 2009
5. Re: Off-the-shelf corporations, are they real? Jan 16, 2009 3:06 PM
in response to: Lighthouse24
Would you be able to give us the information of the attorney? Makes me feel more confident about it! I would like to optain more information....
Click to view Lighthouse24's profile Mogul Lighthouse24 2,396 posts since
Oct 10, 2007
6. Re: Off-the-shelf corporations, are they real? Jan 16, 2009 3:47 PM
in response to: luv4freedom
As I'm sure you can understand, there are some privacy issues with that. You can vist the following website for more information in general, and to see a list of aged companies that are available through this broker (this is not a recommendation, and I have no financial association or affiliation with this entity -- this is provided for your info and self-education only):
http://www.companiesinc.com/corporation/aged/nevada.asp
Click to view money4u's profile Mogul money4u 45 posts since
Feb 10, 2009
7. Re: Off-the-shelf corporations, are they real? Apr 20, 2009 1:00 PM
in response to: luv4freedom
I can help. Please email me at dawnbergeron@hotmail.com

Legend

  • Open Question
  • Answered Question
  • New content since your last visit
  • Updated content since your last visit
  • Content you have read