Aged Corporations

Having some age to your company does help in building business credit

Aged or Shelf corporations are entities that have been formed by companies such as Business Credit Services who intend to hold the entity for several years on their shelf with the intent to sell the entity at a later point in time in the future. 

If you are looking to purchase an aged corporation make sure you purchase from a reputable firm.  We have seen individuals purchase aged corporations from places such as EBay.com only to find that the entity had large tax liabilities attached to them after their purchase. 

The best aged corporations from a safety standpoint are those that have no activity on them. 

Aged corporations have been promoted by many as a great avenue for building credit and obtaining financing.  The reason is that lenders don’t want to provide loans and lines of credit to a brand new company.  However those promoting the aged corporations for this matter don’t tell the person making the purchase that they will need to lie on the credit applications to get the loan or line of credit.  You see, banks want to know your annual revenue (not projected), but what your actual revenues were the last 12 months.  If you lie you have just committed fraud and could end up in jail. 

An aged corporation works are in situations such as:

You have operated your business for the last two years as a sole-proprietor and now want to incorporate.  You can purchase an aged corporation and work with your CPA to merge the two companies showing true financials of the business from the start date of your sole-proprietorship. 

By purchasing a two year old aged corporation, in three years you can say your company is five years old and you have three years tax records.  Most lenders only want two years financial data to approve larger loans and lines of credit. 

Having an aged corporation does help in building business credit but be careful not to accidentally mislead or provide false information to lenders.  Doing so will back-fire on you. 

If you are interested in obtaining a aged corporation fill out the inquiry form below:

Your Email:* Name: Phone: How old of a corporation are you looking for: 6 months 1 year 2 years 3 years 4 years 5 years 10 years+ How soon do you need the corporation?: As soon as possible In the next week Within 30 days Just looking

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