New Corporation vs Aged / Shelf Corporations
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Incorporation Offers Many Advantages
Why do so many business owners choose to incorporate their businesses? Because incorporation offers many benefits – the most important of which is liability protection for the business’ stockholders. Because the corporation is a separate legal entity, stockholders usually cannot be held personally responsible for the corporation’s debts and liabilities. In addition, a corporation is easily sold or transferred, has unlimited life (i.e. it will continue to exist even if an owner dies), makes it possible to raise capital through the sale of stock, and may offer tax advantages.
Aged or “Shelf” Corporation Offers Even More Advantages
An “aged corporation” or “shelf corporation” is an incorporated business that has had little or no business activity. Aged corporations are formed and then “put on the shelf” to age. Purchasing and using a shelf corporation offers all of the advantages of incorporation and more.
Most potential creditors or business resources are understandably hesitant to work with new corporations. Shelf corporations provide the immediate appearance of longevity. Using a shelf corporation to incorporate your business allows you to approach others as an established corporation, thus increasing the chances that your business will be able to obtain credit lines, banking relationships, leases, etc. You’ll also enjoy increased access to investment opportunities and the ability to bid for work in areas where candidate companies are required to have been in existence for a stated minimum period of time.
To learn more about the benfits of an aged corporation, visit our FAQ section, or to speak to one of our sales representatives call 877-464-3700 |