Business Funding – Page 7 – Richard Moratti

Are you planning to enter the world of shelf companies? You’re in the perfect place to get started! Since business has so many moving pieces, purchasing a shelf corporation that can yield a lot of business funding can be very confusing (especially for a new aspiring entrepreneur) simply because there is so much misinformation out there. Ah, and let's not forget about the looming risk of scammers. But don't worry! You are safe with me. I will use my 25 years of experience as a financial coach and a banking expert to show you a comprehensive step-by-step guide on buying a shelf company to ensure you get as much business funding as you can possibly and scale your business fast! What are Aged Shelf Companies? A shelf company is a registered company that does not engage in any business. Shelf companies or shelf corporations have plenty of other names, such as ready-made companies, aged companies, or blank check companies. To make it easier for you to understand, a shelf company is a company that has been put or left on a shelf to age. As the name suggests, a shelf company is registered to “sit on a shelf” to age and wait for someone to purchase it. Should You Buy a Shelf Corporation? Are you in a hurry to start a business? Or maybe you can’t wait to get a bid on some sweet contracts? If you don't want to make money fast, then no! But if you want to get funded so you can invest and scale your business without working your a** off for years, then YES! Absolutely, you should buy one, and here’s why: An aged shelf company will make it easier for you to do these things and more! Here are a few benefits of buying a shelf company: Saving Time “I’m planning to start my own business. Is buying a shelf company a good idea?” Absolutely! A shelf company offers many advantages, such as its history of existence and possible tax benefits. You don’t have to worry about all the necessary legal requirements since a shelf company lets you skip the long process of registering a new company. Get Approved For A Bigger Business Credit “I’ll need a business loan for my startup, but the banks won’t lend me that much.” New companies don’t have a good credit history, making it harder for their loan applications to get approved. However, a shelf company gives you that established look so you can easily get that funding for your business. Eligibility To Join Government Contract Biddings Just like with banks and other private lenders, a lot of government contracts require that a business has been in existence for a specific time to be able to bid on them. Purchasing a shelf corporation will give you the capability to bid on these government contracts since your company is already aged. How Much Does a Shelf Company Cost It will be hard to say what a shelf company’s specific price is. That’s because there are plenty of factors that affect this amount. However, an average shelf company can start at around $600, but it can go higher up to $50,000. Factors That Determine The Price of a Shelf Company: Buying a shelf company is like buying vintage items; the older it is, the pricier it gets. The price of a shelf company varies on these factors: Age: Older shelf companies are more costly due to having a longer corporate history Place: Where is the shelf company registered? Some states have higher fees and maintenance costs. Seller: Prices also differ depending on the person or place’s demands and other fees they might add to selling the shelf company. Company Name: Some companies have a pretty good name that can even increase prices. Demand: The price of a shelf company will also depend on the market in that particular area or industry. How To Buy A Shelf Company There are plenty of options and places to buy a shelf company. However, you need to ensure that it’s legitimate and trusted. Fortunately, we’ve got you covered! Here’s a guide on how to buy a shelf corporation: 1. Find Aged Shelf Companies For Sale Finding places that sell legit shelf corporations is hard since these types of businesses are typically not in government databases. Instead, they are sold by people or industries in the private sector. These sellers obtain and maintain these companies and then sell them to people who want to speed up their startup or development processes. Here are the mediums or where you can buy a shelf company: Online Business Brokers Many online business brokers sell aged corporations. These channels have a list of different shelf companies that you can buy. Choosing business broker websites with a good reputation for avoiding scams and other unpleasant matters is best advised. For example, check out Corporations Today Inc. or BSC & Associates. Corporate Solutions. Legal & Financial Services You can also find shelf companies for sale in some law firms and financial service companies. One great benefit of buying a shelf company with a financial expert is that he or she can guide you closely on the buying process and help transfer the full ownership of your newly bought company. Law firms or financial service providers such as AmeriLawyer and Companies Incorporated offer shelf corporations. Online Marketplaces Another option would be online marketplaces such as Flippa or eBay. Sellers sometimes list their aged shelf companies for sale here. However, it’s not ideal to just buy a shelf corporation in these marketplaces. You’d need to be cautious and verify the legitimacy of the seller and the company for sale. Online Forums Online forums such as Reddit or Quora might have people or companies that advertise their shelf corporations for sale there. Many knowledgeable entrepreneurs in online forums can help you with listings and other opportunities you might need. 2. Verification Process Before buying a shelf company, you should perform a verification or background check. In this way, you’ll be able to check if the company matches what you want to do with your business. Checking authenticity protects you from purchasing a bad shelf company. It’s also a great way to avoid getting scammed. Here’s a quick tutorial on how: Assess the company’s financial records if you can get them. Check their legal documents to see if any undisclosed legal problems are hidden in their records. Ensure that the transfer process is legit and is filed with the authorities. Check for the company’s credit packages to see any existing credit lines. Reviewing these documents will help you better understand what you’re buying. If you’re having trouble understanding these files, consult with your financial adviser or legal experts to ensure your purchase is smooth and safe. 3. Finalize the Company Ownership Documents Now that you’ve bought your new shelf company, it’s time to finalize all the required documents. The new owners, which will be you, will need to sign the ownership transfer and the amendments to the company documents. Usually, the buyer of a shelf company will receive the following documents: Sale documentation Certificate of Incorporation Certificate of Non-Trading Share Transfers Company constitutional documentation (Printed copies of the Memorandum and Articles of Association) Government registration documents 4. Setting up your new company You’ll need to set up your newly bought shelf company to finish things off. Now, you can customize many different features, such as the company name! Once the transfer is complete, the buyer can now make changes to the company, including: Compy name: the new owner now has the power to change the company’s name to their own liking. Registered Address: Changing the company's registration address Appoint New Directors: Buyers can now also select new directors and corporate secretaries of the corporation. Share Transfer: Transfer the shelf company’s share to the buyer’s name once bought. Shareholders: The buyer can now change the amount and type of shares given to each shareholder. Amendments to the Constitution: Adjust the company’s constitution into a more suitable one if the shelf company only has a standard constitution to benefit its business needs. How To Buy A Shelf Corporation: Final Thoughts Shelf corporations are companies that have never conducted business or held assets. These companies are for sale, holding many benefits to entrepreneurs. Many individuals buy shelf companies since these enterprises are less stressful and less expensive than establishing a new company. There are plenty of ways to buy a shelf company. You can get it from online business brokers, law firms, financial services, and even in online forums. There is still a process to acquire a shelf company. Even though quicker, new business owners will need guidance to ensure their purchase is good and legitimate. READ NEXT: SHELF COMPANIES AND SHELL COMPANIES: WHAT’S THE DIFFERENCE?