Shelf Corporation Purpose #2
The shelf corporation eases the start-up of a business and when needing to establish business credit.
An aged shelf company is more much more likely to close sales where credibility is a significant issue in marketing. The increase in bank deposits is important to developing lines of business credit.
Certain leasing companies and landlords are known to only lease to small businesses that are at least two years old. Establishing business credit is easier with local suppliers when you have an aged shelf corporation or aged shelf LLC. In that sense, starting with a three year old aged shelf corporation makes a substantial difference.
Only buy an aged shelf corporation, or “aged corporation”, when there’s a real benefit from using such an entity.
Wanda seeks to open a gift shop. An aged corporation may only help her in terms of dealing with new suppliers, obtaining retail space, or in leasing fixtures. Customers don’t care whether they buy a gift from a store that has no business history unless a warranty is involved. A retail operation that deals in jewelry, electronics, or other specialty item may vary; however, because follow-up is important. The customer may feel that an business that with a history is more stable than one without. This may make or break sales.
Mike is starting an internet-based consulting firm catering to small businesses. His clients will ask him how long he’s been in business. Even though his business may be new, buying a two year old corporation may help him build instant credibility. On the contrary, Mike’s many years of experience may speak volumes for him instead of relying on an aged corporation.
Ask yourself whether the age of the corporation is important to your clients or your creditors. If so, buying an aged corporation may be of benefit. Ultimately, how you sell yourself and your products/services will clinch the deal, regardless of whether you buy an aged corporation.