|
You and Identity Theft What can you do to protect yourself? 
|
Shelf Corporations or Aged Corporations are companies that have been formed and then put on "on the shelf" or "in a file". The organizer of the Shelf Corportation then keeps the corporation active but with no commercial activity for a number of years. This corporation is then later usually sold to someone who would prefer to have an aged corporation rather than a new one.
Common reasons for buying a shelf corporation include: 1) Saving the time involved in taking the steps to create a new corporation. Although in years past, it took weeks or months to file a new Corporation, many states have the process down to a few weeks, even hours if extra fees are paid. 2) Gaining the opportunity to bid on contracts. Some states or other business require that your company be in business for a certain length of time before doing business with them. 3) Creating an appearance of corporate longevity. 4) Access to investment capital. Many lenders will not lend to new companies or companies in businss less then a few years. This creates many new avenues for capital and investments. A corporation might end up "on the shelf" precisely because of a bad business history. It is questionable whether a shelf corporation improves access to capital, since creditors and investors look into a company's history as part of due diligence. A number of entities create and sell shelf corporations, promoting the fact that the new buyer can at the same time have a corporation with a long history, and yet have complete control over the establishment of the corporations board of directors and shareholder profile. Postal Plus Express does not provide or deal in Shelf Corporations. If you need more information about Shelf Corporations, please feel free to email us. |