Buy Shelf Corporations
One of the biggest benefits of owning a corporation is being able to obtain credit in the name of the corporation, as opposed to exposing the owner’s personal financial history and credit report to scrutiny. The challenge to obtaining Corporate Credit from financial institutions is the fact that lenders want to ensure that they are lending money to well-established companies. When financing a start-up business, most of the time the owners must personally guarantee any loans obtained in the name of the corporation. While this obtains some financing for the corporation, it adds to the amount of debt the owner is responsible for on their personal credit report.
A great alternative to a freshly incorporated company would be to obtain an Aged Corporations, also known as a seasoned shelf corporation, or a shelf corporation. These are corporations that are formed and are “shelved away” so that they can age. These business entities conduct no activities, and sit idle as they age over time.
These aged Shelf Corporations are appealing for those entrepreneurs who want to be able to own a corporation that has a long corporate history. This corporate history allows its owners to state that they have been around for a much longer amount of time than they otherwise would normally have, had they incorporated a brand new company.
