As a startup business owner you might find
yourself overwhelmed by all the new information you need to assimilate. This is
especially true if you have designs incorporating your business and eventually taking
it public. Just because you’re starting a business doesn’t automatically mean
you need a business degree, but it will help to familiarize yourself with the
basics. One business model concept you should be looking into is whether or not
to buy a Shelf Company as part of your business strategy.
So,
what exactly is a Shelf Corporation?
A Shelf
Corporation or Aged Corporation is an official corporation that has been created
but is not being used by that creator. There are many reasons why a corporation
could still be idle but that doesn’t mean they don’t have any inherent value.
Think of these as “instant” corporations as it pertains to helping your
business start up. How can your business benefit from taking over a Shelf
Corporation? Consider the following:
·
Time Saver
Buying a Shelf Corporation allows your
business to get up and running a lot faster. The incorporation process can
often drag on for months. With a Shelf Corporation that work has already been
done. It would be like stepping into a franchise business. All the equipment
and supplies have been purchased; you’re just taking over control.
·
Faster Access to Credit
Many vendors would prefer to do business
with an established corporation. Therefore, a new startup might find obtaining
lines of credit a challenge. An additional hurdle for a new business is being
asked to provide a personal guarantee for loan. That could greatly hinder your
chances to secure immediate financing. A Shelf Corporation can establish the
kind of corporate longevity that can open up a lot more credit possibilities.
·
Instant Credibility
A Shelf Corporation allows your business to
obtain instant credibility. This is important to potential investors. You’re
not fooling anyone because the history of the corporation will be a matter of
record. Instead, you’re stepping up your professional game and establishing
your credentials.
·
Access To Government Contracts
Depending on your business, you might have
the opportunity to do work for the government whether that is a local
municipality or on a national level. These can be a very lucrative asset for
your business. However, some government agencies require a business to be already
be operational for a specific amount of time. You can meet that requirement
with a Shelf Corporation.
