How to Find Aged Shelf Companies for Sale +Why Buy Them? 

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aged shelf companies for sale

Looking to get into the world of aged shelf companies? You’re in the right place! Aged shelf companies, also known as blank check companies or ready-made businesses, are like the fine wine of the business world – they’ve been sitting on the shelf, waiting for the perfect moment to shine. 

In this guide, we’ll take you on a journey through the ins and outs of aged shelf companies, from what they are to where to find them.

Here’s what’s in store: 

Now, let’s get to it! 

What are Aged Shelf Companies?

aged shelf company definition

Also known as blank check companies, ready-made companies, or simply “aged” companies, aged shelf companies are registered entities that have had no activity. Think of it as setting your business on a shelf to age like a bottle of wine. 

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Like wine, when the right conditions are met, a business can improve when aged. Except, rather than enhance the flavor, a shelved company establishes corporate history and, when opened, can expedite business processes. 

Note: Shelf companies are not to be confused with “shell corporations,” which are typically empty entities used for concealing ownership, avoiding taxes, or engaging in illicit activities.

What are the Characteristics of a Shelf Company? 

In a nutshell, aged shelf companies have been around for several years or more, often decades, and remain inactive since their creation. They have a clean financial and operational history, with no debts or liabilities.

Now, let’s find out how much a shelf corporation costs and the considerations involved. 

How Much Does a Shelf Corporation Cost? 

So, how much does it cost to snag one of these shelf corporations? Well, it’s kind of like buying anything vintage – the price can vary, and it depends on several factors:

  1. Older shelf corporations tend to cost more because they’ve got that longer corporate history going for them.
  2. Where it’s registered matters. Some places have higher fees and maintenance costs.
  3. The person or entity selling the shelf corporation sets the price – It can be influenced by demand and what extras they throw in.
  4. Some sellers offer stuff like help with transferring ownership or handling compliance, which can affect the price tag.
  5. If the company’s got a snazzy name or a certain legal structure, that can drive up the cost. 
  6. Sometimes, you get additional documents like articles of incorporation or organization and credit reports, which can bump up the price. 
  7. The demand for shelf corporations in a particular area or industry can make the prices go up or down. 

See: Low-Risk NAICS Codes +Best SIC Codes for Business Credit

Prices can range from a couple hundred bucks up to ten grand, so do your homework – think about what you need and make sure to check for any hidden surprises before you dive in! 

Why Buy an Aged Shelf Corporation? 

What is the meaning of a shelf company benefits

Now, let’s talk about why some folks choose to snag an aged shelf company—it’s kind of like thrift shopping for businesses.  

Here’s why you might want to buy one:

  • Instant street cred – These old-timers have been around the block for a while, so your business looks legit right from the start. Customers and partners might trust you more.
  • Skip the line – Instead of waiting in line to set up a brand-new business, you can waltz right in with a shelf company. Quick and easy, no fuss.
  • Grab opportunities – Sometimes, to get certain contracts or loans, you need a business with a bit of history. Shelf companies meet those requirements with style.
  • Borrowing made easy – If you need cash, lenders often prefer companies with a few years under their belt. With an established business, getting business credit can be smoother.
  • Blink and You’re In – Expanding your business into new markets? A shelf company can help you jump through those legal hoops faster.
  • Name Game – If the shelf company has a cool name, you can use it without the hassle of registering a new one.
  • Tailor-Made – When you choose a shelf company that fits your business strategy, it’s like a ready-made suit, but for your business.

Next, let’s look at what you can do with them. 

Recommended: This is How to Leverage Business Credit to Transform Your Life 

What do People Do With Shelf Companies?

So, what’s the deal with shelf companies? Well, folks use ’em for all sorts of reasons.

Imagine you’re in a hurry to kickstart a business or snag some sweet contracts. A shelf company’s like a shortcut because it’s been around for a while, making your new venture look trustworthy right from the get-go. Plus, if you need loans or want to expand into new markets, having a seasoned business can make things way smoother. You can also protect specific assets or use a snazzy business name without the usual hassles.

Maybe you’re already working a business, but you’re unincorporated. An aged shelf company offers a nice way to slide right into the 

But here’s the catch: before you take the plunge, do some digging. Not all shelf companies are the same, so be sure to check for any hidden surprises. 

How to Find Aged Shelf Companies for Sale

Where to find aged shelf companies

State Secretary of State (SOS) offices typically maintain records of registered business entities, including corporations and LLCs. 

However, while you can find information about existing businesses and their registration status through the SOS office, you typically won’t find aged shelf companies specifically listed for sale in these government databases.

Aged shelf companies are usually sold by individuals or businesses in the private sector, often through business brokers, legal and financial services, online marketplaces, or other commercial channels. 

If you’re interested in purchasing an aged shelf company, you would typically need to search for listings or consult with professionals and businesses that specialize in providing aged shelf companies for sale. These sellers acquire and maintain shelf companies and then offer them for purchase to individuals and businesses seeking to expedite the startup or expansion of a new venture.

Finding aged shelf companies for sale can be relatively straightforward with the right approach. Here’s how to go about it.

Certainly, let’s break down how to use each channel to secure an aged shelf company, along with the pros and cons of each approach:

1. Online Business Brokers

Numerous online business broker websites specialize in selling aged shelf companies. These platforms list various aged corporations available for purchase, complete with details about their age, location, and price. You can search and filter listings to find the one that suits your needs.

  1. Visit reputable online business broker websites like Corporations Today Inc. or BSC & Associates.
  2. Seek out aged shelf companies that match your criteria.
  3. Review listings, including details on age, location, and price.
  4. Contact the broker to express your interest and inquire about the purchase process.

Pros:

  • Wide selection of shelf companies.
  • Detailed listings with essential information.
  • Broker assistance with the purchase process.
  • Potential for competitive pricing.

Cons:

  • Broker fees may apply, increasing the overall cost.
  • Limited opportunity for direct negotiations with the seller.

Some law firms and financial services companies offer aged shelf companies as part of their services. They can provide guidance on the purchase process, ensure legal compliance, and help with the transfer of ownership.

  1. Consult law firms or financial service providers like Companies Incorporated or AmeriLawyer that offer aged shelf companies.
  2. Discuss your specific needs and budget with the service provider.
  3. Review available shelf companies in their inventory.
  4. Work with the service provider to complete the purchase and transfer of ownership.

Pros:

  • Expert guidance on legal compliance.
  • Streamlined purchase process.
  • Assistance with ownership transfer.
  • May include additional services such as registered agent services.

Cons:

  • Costs may be higher due to bundled services.
  • Limited selection compared to online listings.

3. Business Directories

You can check business directories or databases for companies that offer shelf corporations. Look for contact information and inquire about their available inventory.

  1. Explore business directories or databases.
  2. Identify companies offering shelf corporations for sale.
  3. Contact the companies directly to inquire about available aged shelf companies.

Pros:

  • Direct access to potential sellers.
  • May find local options easily.
  • Direct communication with the seller.

Cons:

  • Limited information available in directories.
  • May require extensive outreach and research.
  • Limited selection compared to specialized platforms.

4. Networking

Connect with entrepreneurs, business consultants, or professionals in your industry who may have knowledge of or access to shelf companies for sale. They might provide valuable recommendations or leads.

  1. Network with entrepreneurs, business consultants, or industry professionals.
  2. Share your interest in acquiring a shelf company.
  3. Seek recommendations or referrals from your network.

Pros:

  • Personalized recommendations.
  • Potential for insider information.
  • Trustworthy referrals from known contacts.

Cons:

  • Networking may take time.
  • Reliance on others to provide leads.
  • Limited control over the selection process.

5. Online Marketplaces

Explore online marketplaces like eBay or Flippa, where sellers occasionally list aged shelf companies for sale. Be sure to conduct due diligence and verify the legitimacy of the seller and the company being offered.

  1. Search online marketplaces like eBay for aged shelf companies.
  2. Review listings, including seller ratings and descriptions.
  3. Contact the seller to discuss the purchase.

Pros:

  • Accessibility to a wide audience.
  • Opportunity to negotiate directly with the seller.
  • Transparency through ratings and reviews.

Cons:

  • Limited availability of shelf companies.
  • May encounter less reputable listings.
  • Need for thorough due diligence on sellers.

6. Legal Notices

Check local or national legal publications or government websites for any notices about companies being offered for sale – This might lead you to aged shelf companies available in your jurisdiction.

  1. Check local or national legal publications or government websites for notices about companies for sale.
  2. Contact the parties offering shelf companies.
  3. Inquire about the available options.

Pros:

  • Potential to find local opportunities.
  • Information often publicly available.

Cons:

  • Limited listings.
  • May not be actively updated.
  • Limited details in legal notices.

7. Industry Conferences & Events

Attend industry-specific conferences, trade shows, or business events. You may come across vendors or experts who offer aged shelf companies as part of their services.

  1. Attend relevant industry conferences, trade shows, or events.
  2. Network with vendors or experts in the field.
  3. Inquire about any aged shelf companies they may offer.

Pros:

  • Direct access to industry-specific opportunities.
  • Face-to-face interactions for building trust.

Cons:

  • Limited availability during specific events.
  • May not align with your timeline.

8. Business Associations

Join business associations or chambers of commerce related to your industry. Members often share information and resources, including opportunities to purchase shelf companies.

  1. Join industry-related business associations or chambers of commerce.
  2. Engage with fellow members and express your interest.
  3. Seek information or leads from association members.

Pros:

  • Networking within your industry.
  • Trustworthy referrals from association members.

Cons:

  • Reliance on the association’s network.
  • May require time for connections to develop.

9. Online Forums and Classifieds

Participate in online forums, classified ad websites, or social media groups like Reddit r/business where businesses are discussed, bought, and sold. Some individuals or companies may advertise aged shelf companies there.

  1. Participate in relevant online forums, classified ad websites, or social media groups.
  2. Engage with members and express your interest in purchasing a shelf company.
  3. Inquire about any listings or opportunities available.

Pros:

  • Direct access to potential sellers.
  • Informal and open communication channels.
  • Potential for unique opportunities.

Cons:

  • Limited oversight, requiring thorough due diligence.
  • May encounter less reputable listings.
  • Time-consuming to filter through various sources.

When searching for aged shelf companies, always exercise caution and conduct thorough due diligence.

How to Protect Yourself From a “Bad” Shelf Company

So, before you buy an aged shelf company, you want to make sure you’re not getting a lemon, right? 

WY SOS Business Search

Here’s what you should do:

  • Check the articles – Look at the company’s articles of incorporation or organization. Make sure they match up with what you want to do with the business.
  • Review financial records – If you can, get your hands on financial statements. You’ll want to know if the company’s in good financial shape – It should have no debt. 
  • Verify ownership transfer – Ensure the ownership transfer process is legit and filed with the authorities. Get clear documentation of the transfer signed by both parties.
  • Legal documents – Check if there are any undisclosed legal issues or obligations lurking in the company’s records. And make sure the registered agent and address are up-to-date.
  • Credit package – If applicable, review any credit packages associated with the shelf company to understand any existing credit lines or financing agreements.

By going through these documents, you’ll have a better idea of what you’re getting into and can avoid any nasty surprises down the road. Be sure to verify the authenticity of the seller, review all of the company’s history and records, and consult legal and financial experts to ensure a smooth and secure transaction.

FAQ

Why do shelf companies exist?

Shelf companies are like prepped-up businesses waiting for action. They exist for folks who want to skip the startup hassle and dive into business with a history.

Do shelf companies pay taxes?

Yup, they’re not tax-free. Shelf companies, like any other business, need to pay taxes based on their income and location (if they have no income, their tax obligation would likely be $0).

Can you register a business in a state where you don’t live?

Absolutely! You can register a business in a state where you’re not living. It’s common for folks to do this to tap into specific business advantages or markets. But, if you are active in your home state, the business may need to be registered there as well. 

Should you buy a shelf corporation?

Well, it depends on your needs. If you want a head start and a business with history, it’s an option. But, always do your homework and make sure it’s the right fit for your goals.

Final Thoughts

So, there you have it – the lowdown on aged shelf companies, from what they are to why you might want to buy one and how to protect yourself from any surprises. Whether you’re looking to kickstart a business with instant history or expand your current venture, aged shelf companies offer a unique shortcut. 

But remember, it’s all about doing your homework, verifying the details, and making sure it’s the right move for your entrepreneurial journey. Cheers to your future business success!

Want to learn how to get up to $100K in business credit? Join Business Workshop today.

Check out our Shelf Corp - Special Deal!
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See our discounted offer on an Aged Shelf Corp for sale (plus our best training included for free). Just click Add to Card below

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Sole Proprietorship VS LLC: How to Choose Your Entity Wisely

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Sole proprietorship vs LLC

Here, we teach people how to build business credit. And, establishing your entity is a super important step in the process — early on, the two most common choices are sole proprietor or LLC. 

If you’re running a business as a sole proprietor, and considering an upgrade to LLC,  you might already know that you can get some business credit even without registering as an LLC or corporation…But if you’re looking to take your business to the next level and secure larger no-doc business lines of credit (think 25k, 50k, 100k), you might find it challenging without a registered corporate entity.

Banks and lenders tend to prefer working with LLCs or corporations because they offer more protection and credibility. So, I highly recommend considering forming an LLC over a sole proprietorship if you’re serious about obtaining substantial business credit.

Don’t get me wrong — you can still apply for business credit cards as a sole proprietor. But, a registered LLC or corporation can make it easier to secure other types of financing and help you build a stronger credit profile for your business. 

In this article, we’ll dive deeper into the differences between sole proprietorship and LLC, and explore their pros and cons, especially when it comes to business credit and financing options.

Here’s what we’ll cover: 

Now, let’s get going! 

Are You Sure You Only Want to Look at Two Options? 

Before we get too deep into the pros and cons of LLCs vs sole proprietorships, let’s take a quick look at some more entity types — I want to cover it all and give you everything you need to know. After all, it’s crucial to choose the right structure for your needs. 

You might also like: What’s the Best Payment Processor for a Small Business? Really

Sole Proprietorship

A sole proprietorship is the simplest type of business structure and is owned by one person. The owner has complete control over the business and is personally liable for its debts and legal issues. Sole proprietorships are not taxed as separate entities from the owner, meaning that the owner reports the business income on their individual tax returns.

Limited Liability Company (LLC)

A limited liability company (LLC) is a type of business entity that gives the owners (“members”) “limited liability protection.” This is a swanky way to say that the member’s personal assets are separate from the company’s assets, and their personal liability is limited to the amount of money they’ve invested in the company. 

LLCs can have one (“single-member”) or more (“multi-member”) members, and they can be taxed as either a sole proprietorship, partnership, S corporation, or C corporation, depending on how the members choose to be taxed.

S Corporation

An S corporation is another type of entity that you may want to consider — it’s a type of corporation that is taxed differently than a traditional corporation (C corporation). An S corporation’s profits and losses are “passed through” to its shareholders, who report the income on their individual tax returns. 

This means that S corporations avoid double taxation. To qualify as an S corporation, a business must meet certain requirements set by the IRS.

C Corporation

Next, you have a C corporation — a traditional corporation that is taxed as a separate entity from its owners (“shareholders”); this means that the corporation pays taxes on its profits, and the shareholders pay taxes on the dividends they receive from the corporation. 

C corporations offer limited liability protection for their shareholders, but they are subject to double taxation.

Partnership Options

At this stage, it’s also important to look at the two types of partnerships: 

General partnerships are a type of business entity where two or more people share the management and ownership and management of the company. The partners share the profits and losses of the business and are personally liable for any debts or legal issues that the business incurs.

A general partnership is typically not taxed as a separate entity from the partners, meaning that the partners report the business income on their individual tax returns.

Limited partnerships are similar to general partnerships but with two types of partners: general and limited partners. General partners have control over the day-to-day business operations and are personally liable for any business debts and legal issues. Limited partners, on the other hand, have limited liability and are not involved in the management of the business.

Limited partnerships are typically taxed as pass-through entities.

Sole Proprietorship vs Single-Member LLC

A single-member LLC is not the same as a sole proprietorship. In terms of liability protection, taxation, ease of formation and maintenance, and flexibility in management, there are considerable differences between sole proprietorships and limited liability companies (LLCs):

First of all, sole proprietorships provide no liability protection for their owners — basically, he owner’s personal assets are at risk if the business is sued or incurs debt. In contrast, LLCs offer “limited liability protection” to their owners (their personal assets are generally protected from the company’s debts and legal judgments).

Next, sole proprietorships are typically taxed as pass-through entities, which means that the business’s profits and losses are reported on the owner’s personal tax return. LLCs can also be taxed as pass-through entities, but they provide the option to be taxed as a corporation (this can be advantageous for LLCs that want to cash in on lower corporate tax rates or retain earnings in the business without paying personal income taxes on them).

And, sole proprietorships are the easiest and cheapest business entities to set up…in most states, they require no formal paperwork or registration. Now, while LLCs require more paperwork and filing fees to establish, they offer formal structure and protection. Both types of businesses require ongoing maintenance, such as keeping accurate financial records and filing tax returns, but LLCs typically have more stringent compliance requirements.

Finally, sole proprietors have complete control over the management of their businesses…but (big but), this also means that they have full responsibility for all aspects of the business. LLCs are more flexible in terms of management structure — they can be managed either by the members or by outside “managers.” LLCs can also have varying degrees of ownership and voting rights among members, which allows for more customized ownership structures.

While both sole proprietorships and LLCs offer benefits and drawbacks, LLCs typically offer more liability protection, tax flexibility, and management structure options, but require more paperwork and ongoing maintenance. 

Here’s How Sole Proprietorships & LLCs Pay Taxes

Sole proprietors report their business income and expenses on their personal tax returns using Schedule C (Form 1040). The net income from the business is then subject to self-employment taxes, which include Social Security and Medicare taxes. Self-employment taxes are calculated on Schedule SE (Form 1040) and are owed in addition to income tax. 

→ Sole proprietors are also responsible for paying estimated taxes quarterly throughout the year.

LLCs have more flexibility in how they pay taxes — by default, single-member LLCs are taxed as sole proprietorships and report their business income and expenses on the same Schedule C as a sole proprietor (Form 1040). 

Multi-member LLCs are taxed as partnerships and file Form 1065 to report their business income and expenses annually. But, LLCs can also choose to be taxed as S corporations or C corporations by filing Form 8832 or Form 2553, respectively.

Comparison of Tax Rates & Deductions

Sole proprietors and LLCs taxed as sole proprietorships pay income tax at their individual tax rates, which range from 10% to 37% depending on their taxable income. They are also subject to self-employment tax, which is currently 15.3%.

LLCs taxed as partnerships, S corporations, or C corporations are not subject to self-employment tax — Instead, the owners or shareholders pay income tax only on their share of the profits. 

Both LLCs and sole proprietors can deduct typical business expenses, such as rent, supplies, and equipment, to reduce their taxable income. 

Can an LLC Be Used to Reduce Taxes?

You can use an LLC to reduce taxes in a couple of ways: 

  1. Elect to be taxed as an S corporation — this allows the owners to pay themselves a reasonable salary and take the remaining profits as distributions. This can reduce self-employment tax, as only the salary is subject to Social Security and Medicare taxes.
  2. Take advantage of deductions and credits — LLCs can deduct business expenses, such as rent, supplies, and equipment, as well as contributions to retirement plans and health insurance premiums. They may also be eligible for tax credits, such as the Research Tax Credit or the Small Business Health Care Tax Credit.

Note that sole proprietorships are eligible for many of the same write-offs and credits as LLCs. So, how can you choose between them? 

How to Choose Between a Sole Proprietorship and an LLC

Here are some factors to consider when deciding whether to choose a sole proprietorship or an LLC:

Sole Proprietorship:

  • Simple to set up and maintain — A sole proprietorship requires minimal paperwork and legal formalities, making it easy and affordable to start and operate. 
  • Complete control — As a sole proprietor, you have complete control over your business decisions and operations.
  • Tax benefits — As a sole proprietor, you report your business income and expenses on your personal tax return, which can simplify tax preparation and potentially lower your tax burden.

Limited Liability Company (LLC):

  • Limited liability protection — An LLC provides limited liability protection to its owners, meaning that the owners are not personally responsible for the company’s debts and liabilities. 
  • Credibility and professionalism — An LLC is often seen as a more credible and professional business entity than a sole proprietorship, which can be an advantage when dealing with customers, vendors, and investors. 
  • Flexibility in taxation — LLCs have the option to be taxed as a partnership, an S corporation, or a C corporation, providing flexibility in tax planning and potentially reducing overall tax liability. 

In general, if you’re a small business owner with low risk and relatively simple operations, a sole proprietorship can be a decent choice. However, if you are concerned about personal liability or are looking to grow your business and establish credibility, an LLC may be a better option. It’s always a good idea to consult with a lawyer or accountant to determine the best business structure for your specific needs and circumstances.

With that said, I know that you can get business credit with a sole prop but you can get serious no-doc business lines of credit (25k, 50k, 100k) without a real entity. so I recommend getting an LLC. You can get business credit cards but banks want to see an LLC or corporation to extend business lines of credit.

How to Register Your Business 

How to Register as a Sole Proprietor

Here are the basic steps to file the necessary paperwork for forming an LLC and registering as a sole proprietor.

Of course! Here are some more conversational explanations of the steps to form an LLC and register as a sole proprietor:

How to form an LLC:

  1. Pick a name for your LLC that’s not already taken in your state and meets your state’s requirements.
  2. File an Articles of Organization form with your state’s Secretary of State office. This form typically asks for basic information about your LLC, like its name, address, and the name and address of your registered agent.
  3. Draft an operating agreement for your LLC. This outlines how your LLC is run and who owns it. Some states don’t require an operating agreement, but it’s still a good idea to have one.
  4. Get any necessary licenses and permits for your business. Depending on where you live and what you do, you might need specific licenses or permits to operate your LLC.
  5. Apply for an EIN from the IRS if you plan on hiring employees or opening a bank account for your LLC.

How to register as a sole proprietor:

  1. Decide on a name for your business, whether it’s your own name or something else.
  2. Get any licenses or permits you need to legally run your business in your area.
  3. File a “Doing Business As” (DBA) form with your state’s business registration office to register your business name.
  4. Apply for an EIN from the IRS if you plan on hiring employees or opening a business bank account.

Remember, the specific rules and requirements for forming an LLC or registering as a sole proprietor vary by state and local municipality, so be sure to do your research and follow the guidelines for your location. For example, in Oregon, you can legally run a business after filing an “Assumed Business Name” alone, but may still need local business licenses. 

Recommended: Secretary of State Offices Directory | Where to File a Business License

Frequently Asked Questions

What are the disadvantages of an LLC vs a sole proprietorship?

LLCs can be more costly and require more paperwork than sole proprietorships, but they offer greater personal liability protection. Sole proprietorships are generally easier and cheaper to set up, but leave you personally responsible for any business debts or legal issues.

What is more risky, a sole proprietorship or an LLC? Why?

A sole proprietorship is generally riskier than an LLC, as sole proprietors are personally liable for any business debts or legal issues. Forming an LLC can offer greater personal liability protection, which can help shield the owner’s personal assets from business-related risks.

How do business owners pay themselves?

Business owners can pay themselves in different ways, including salary, dividends, or draws/distributions from business profits, depending on the business structure and personal financial needs. And, some companies pay the owner’s salary with a business credit card. It’s important to consult with a financial advisor or accountant to ensure compliance with legal and tax requirements.

Conclusion: Which Structure is Best for You?

Whether you should choose a sole proprietorship or an LLC is based on a number of factors. Do you want more ease or more protection? Do you have specific tax needs? By now, you should have an idea which is best for your operations. 

However, if you want substantial lines of business credit, there is a clear choice: form an LLC…You can certainly obtain business credit cards as a sole proprietor, but to get those larger lines of credit in the tens and hundreds of thousands range, most banks will want to see a more formal business entity like an LLC or corporation.

To learn how to obtain up to $100K in business credit in as little as 30 days, join Business Credit Workshop today.

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