A change of owners on record results in a setting of the age of the company to zero. If you think about it, new owners means the company may not be run the same way as the previous owner. Even if the company has no credit history, a change of ownership may result in a negative credit history.
Again, the dangerous part is that many Nevada resident agents are not talking about this requirement because they know of the negative impact it’ll have on their business. From the perspective of the bank or financial institution, they will reset the respective age of the company when the owners change. And since the owners are listed on the Nevada business license, that shift is easily noticed through public records. See the form here.
There’s more to consider than the age of the company. The mortgage crisis also resulted in many defaults in business loans. Scores of those loan defaults involved corporations from Nevada and Delaware. In addition, Nevada suffers from rampant financial fraud due to businesses that support access to rapid funds; due to activity related to gambling, legalized prostitution, adult entertainment and drugs. Using a Nevada corporation to build business credit is simply counter-productive. In building business credit, you’re much better off with a corporation from Montana. In contrast, Montana is known for clean business practices.
All of our companies are without a credit history, without an EIN and without a transaction history. So, what does this mean to you? This means that you don’t need to worry about back taxes owed, delayed fused litigation, or unseen liabilities.