How to Prevent Business Identity Theft
BUSINESS IDENTITY THEFT
Easy account opening
Simply put, businesses tend to have larger bank balances than a regular consumer. Even a small business can have tens or hundreds of thousands more than a consumer checking account. It is not hard to see why these larger accounts have become a high value target amongst identity thieves.
Extended payment terms
Not only is it easier for a business to obtain a credit account over the average consumer, they also enjoy extended payment terms. Businesses typically provide other business terms of 30-120 days, much longer than they do on a consumer account. This provides identity thieves ample time to receive products or services in business names while avoiding the risk of early detection that comes with using a fraudulent form of payment.
Lack of security
HOW MUCH SHOULD THEY COST? WHAT IS THE INDUSTRY STANDARD?
Aged corporations with no transaction history are priced using this general industry formula:
Cost of Filing + Cost of Maintenance + Years x ($1000)
Example: Bob finds a Nevada aged corporation that is two years old. The aged corporations cost the incorporator $750 to form and to maintain the corporation. How much is it worth?
PRICE = Cost of Corporation + Cost of Maintenance + Years Aged x ($1000)
PRICE = $750 + 2 x ($1000)
PRICE = $2750
$2,750 is the market rate for a two year old Nevada aged corporation. As an alternative, Wyoming aged corporations cost less because their formation and maintenance expenses are substantially less than in Nevada. They are just as good in terms of asset protection and financial privacy, but without the marketing hype. The same corporation formed in Wyoming may only cost $2210.