WHAT IS A SHELF CORP? – A Shelf Corporation (or LLC), also referred to as an “aged” corporation, is simply a company that was incorporated in the past, has had NO business activity and was created and put on the “shelf” to age.
WHY WOULD I BUY A SHELF CORP? – Most commonly, a Shelf Corporation is purchased by an individual or group of investors who would prefer to have a back-dated corporation rather than form a new entity as often times business relationships are more easily established with an older company. It is quite common for distributors, manufacturers, governmental agencies and most commercial lending institutions to require that a company have an established history when entering into a contractual agreement.
Other reasons include: to save the time is takes to form a new company by purchasing an existing one instantly, to create company longevity, the ability to gain access to earlier corporate credit, and to gain the opportunity to bid on contracts.
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