Shelf and Aged Corporation FAQ
What is a Companies Incorporated shelf corporation?
A shelf corporation is a corporation that has been formed on a prior date. Typically, it will not have conducted business. It does not hold assets, has not incurred liability and has yet to issue stock. These corporations are also referred to as seasoned shelf corporations. When you purchase a Companies Incorporated aged shelf corporation, it will arrive in your possession with articles of incorporation file stamped by the government with its incorporation date as well as:
- Articles of Incorporation
- “Action of Sole Incorporator” document which transfers the company to you
- Minutes of meetings
- A corporate kit (record book)
- Stock certificates
- A corporate seal
- Corporate Bylaws
- A corporation checklist letting you know items to keep your company in good standing
- Registered agent service
- Federal Tax ID Number
- Other important documents
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What are the types of aged shelf corporations?
Shelf and aged corporations can be any type of legal entity. This includes U.S. domestic corporations and LLC's, as well as offshore and international entities. The term "shelf" or "aged" only refers to the fact that the company has already been filed and is sitting "on a shelf" waiting to be purchased.
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What shelf corporation age is right for me?
It is important to choose the age appropriate to your needs. For a building contractor or consulting company the number of years in business is important to the clientele. In order to obtain government contracts, the typical age requirement is two years. Moreover, for a business that wants to build corporate credit, the older the better. The key issues are the perceptions of the potential customers and potential lenders. How old does the business need to be to convince the client or the banker that the business is secure and stable? Is the age of your business important? It usually is to a customer or lender.
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What does a shelf corporation age mean?
The age of a shelf corporation is just as real as the age of a human being. The law calls a corporation a person. It is an artificial person. It is separate from the people who own it. The owners of a shelf corporation, as with any other legal entity, are just as separate from each other as two people are separate. The H.J. Heinz company started in 1869. The original owners, officers and directors have long since passed. However, the age of the company truly remains in-tact.
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Additional shelf corporation benefits?
Shelf Corporation Benefits
- Immediate availability - The company formed is ready to be shipped for immediate delivery rather than needing to wait for government filing.
- Credibility to customers
- Increased ability to bid on government contracts. Many state and federal contracts require that the business be between two and five years
- Easier access to credit
- Easier to obtain venture capital
- Easier to take a company “public” and sell shares on a stock exchange if certain criterion are met
- Less lead time to incorporate your company
- Ability to bid or present your business in an arena where candidate companies have to breech an existence duration threshold for contractual adherence
- Immediately creating a company existence longevity appearance
- Access to investment opportunities
- Less limitations when applying for corporate credit
Buyers of shelf corporations have some big advantages over newly filed businesses. First, the benefits mentioned above. Then, the advantage of being able to purchase an established corporation and yet put themselves in as officers, directors and shareholders, giving them immediate control of the business.
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What is a shell corporation or corporate shell?
Corporate shells are “shelf corporations,” as they are known, that are also companies that have already been formed. These types of companies usually do not have shareholders, officers or directors (unless required to be filed to maintain good standing). They generally have no assets or liabilities. Such an entity is analogous to a new home that has been built and is ready for you to occupy.
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