Aged Corp FAQs

faq-banner

What is a Aged (Shelf) Corporation?

A Shelf Corporation, Shelf Company, or Aged Corporation, is a company or corporation that has had no activity. It was put on the “shelf” to “age”. The company can then be sold to a person or group of persons who wish to start a company without going through all the procedures of creating a new one.

Why buy a Shelf Corporation?

Common reasons for buying a Shelf Corporation include:

1. Instantly obtain the necessary “Time in Business” and Credibility required to be approved for Corporate Credit and Financing.
2. Create a solid Corporate Credit Profile as an alternative to Personal Credit Repair.
3. Protect Assets fro Creditors and facilitate Estate Planning.
4. Instantly Qualify to Bid on Government Contracts.
5. Instantly obtain Credibility with prospective Clients, Partners, and Suppliers.
6. Expand your International Business into the United States instantly and without the typical red tape.

What are the major mistakes most Buyers make?

Most Shelf Corporation Buyers will make the following very expensive mistakes if they are not careful:

  • Pay a High-Price for a Shelf Corp that supposedly comes with Established Credit (But it really doesn’t)
  • Pay for a Shelf Corp that supposedly comes with a Personal Guarantor (Recipe for Fraud)
  • Pay for a Shelf Corp that supposedly comes with Tax Returns (Recipe for Fraud & Jail Time)
  • Pay for a Shelf Corp that has Bad Credit and/or Hidden Liabilities (Shelf Corp “Lemon”)
  • Pay for a Shelf Corp that is not owned by the Seller (Fake Seller – Like buying Land on the Moon)

Do I need to obtain Business Licenses for the Aged Corporation in my Home State?

Assuming you followed our recommendation and did a Foreign Entity Registration in your Home State, then yes, you will need to obtain Business Licenses. We can find and complete the Business License Applications for you for $250 + City/County/State Fees.

What is a Federal Tax ID # and why do I need one?

An Employer Identification Number (EIN) is also known as a Federal Tax Identification Number, and is used to identify a business entity, just like a Social Security Number identifies an Individual. If you want to open a Business Bank Account and/or hire any Employees, then you need one. All of our Aged Corporations come with a valid EIN # included for FREE.

What is a Registered Agent, and can I be my own Registered Agent?

A Registered Agent is a business or individual designated to receive service of process (SOP) when a business entity is a party in a legal action such as a lawsuit or summons. The registered agent’s address may also be where the state will send the paperwork for the yearly renewal of the business entity’s charter. The registered agent for a business entity may be an individual member of the company, or (more often) a third party, such as the organization’s lawyer or a service company.

Do I need a Registered Agent in the State of Incorporation?

Yes, you do – That is Required. We provide Free Registered Agent Service for 30 Days after your Purchase, but then you will need to either purchase the on-going Registered Agent Service from us for $350 per Year, or find another provider online and purchase from them.

Can I change the name of my Shelf Corporation? What are the Pros and Cons?

While you are free to change the name of your Shelf Corporation, we don’t advise it as a name change goes against the concept of a Shelf Corporation.  The best advice we can give you is to simply file a Trade Name for the Brand Name you would like to use for your Business. For example, “ABC Enterprises Inc” could do Business using the Trade Name “Super Consulting Group” if that is the name they want to be recognized by.

What forms of Payment do you accept?

We currently accept Wire Transfers, ACH Deposits and Counter Deposits..

What is the difference between an S-Corporation and a C-Corporation?

The main difference between S-Corps and C-Corps is that S-Corps are Flow-Through Entities – This means they are not taxed in the State of Incorporation like C-Corps would be, and the Net Income flows through to the Shareholders and is taxed at the Shareholder’s Personal Income Tax Rate. For 90% of our Clients, S-Corp is the way to go, because being taxed as a C-Corp in the State of Incorporation creates additional costs and headaches that divert from the main Goal which is building Corporate Credit. If an S-Corp is what will work best for you, then we will need to file IRS Form 2553 to elect S-Corporation Status. This is an easy process and can be done in one day.

Which States have No Income Tax?

NO Personal Income Tax: Alaska, Florida, Nevada, South Dakota, Texas, Washington, and Wyoming. For a complete list of Personal Income Tax Rates, click here.

NO Corporate Income Tax: Nevada, South Dakota, Texas, Washington, and Wyoming. For a complete list of Corporate Income Tax Rates, click here.

No Personal Income Tax AND No Corporate Income Tax: Nevada, South Dakota, Texas, Washington, and Wyoming.

Want to avoid State Corporate Income Taxes? Just select S-Corporation Status and you will be taxed at the Personal Level instead of the Corporate Level, thus completely avoiding State Corporate Income Taxes and benefiting from lower Personal Income Tax Rates, regardless of the State where the Aged Corporation comes from.

Can I use a Trade Name with the Aged Corp? How can that be done and how much does it cost?

Yes, you can use a Trade Name (Fictitious Name) with your Aged Corporation and it costs $250 + State Fees, depending on the State you want to operate the Corporation out of.

Do I need to do a Foreign Registration of the Aged Corp in my Home State? What are the Pros and Cons?

No, it’s not Required, however, we strongly recommend that you do a Foreign Entity Registration in your Home State because for Financing Purposes, it is not a good idea to use a Virtual Office Address as your Business Address, which is exactly what you would need to do if you wanted to operate the Aged Corp from the State of Incorporation. So, we recommend you do the Foreign Entity Registration in your Home State using your real Home or Business Address so that your Credit Applications are not denied simply because your Address is a Virtual Office Service. This also makes it easier to open Business Bank Accounts for your Aged Corp, since you would no longer be limited to Banks that allow Bank Accounts to be opened Online only – You will now be able to use ANY Bank in your Home State for both Banking and Financing.

Do I need a Nominee Officer?

The only situation where you would need a Nominee Officer is if you are purchasing an Aged Corp primarily for reasons other than Corporate Credit and Financing. Our Nominee Officer Service is designed to keep your Name out of the Public Records, so that no one can find out about your involvement with the Aged Corp by doing Asset Searches. If you are purchasing the Aged Corp primarily because you want to obtain Corporate Credit and Financing, then using a Nominee Officer is not a good idea because the Nominee Officer will not be able to sign on Credit Applications for you, and Creditors will often require the person listed on the Secretary of State to sign on the Applications.

If I want to use my Existing Business, is it OK if the Business was previously Dissolved by the Secretary of State because I did not pay the Renewal Fees?

No, it’s not OK. Creditors do not like that at all. If you have had that Problem in the past, we recommend you use an Aged Corp, unless your Existing Business has been in existence for several years AND you have Profitable Tax Returns and Financials to show for it.

How does a Virtual Office work? Can I receive Mail and operate my Business from another State in the Country without having to travel back and forth?

A Virtual Office is a Mail Forwarding Service that usually includes Receptionist Services and acts as the Physical Address and Location of a Business. A Virtual Office makes it possible for a Business Owner to operate a Business from anywhere in the World without being physically present in the State where the Business is incorporated. We offer Virtual Office Service as an Optional Feature and it is really only necessary if you plan to operate the Aged Corporation straight out of the State of Incorporation, which is typically only needed for Asset Protection purposes.

What are the most common Shelf Corp Scams?

  • Established Credit Scam:
    This is by far the most common of the scams and the most lucrative for the scammers. In this scam, the scammer may be a “legitimate” incorporation service or business credit building service, or even a company just selling shelf corps, but what makes this a scam is that they will try to sell you a Shelf Corp that supposedly comes with established credit and cash lines of credit which they make it look like you would be able to access right away after purchasing the shelf corp. You get so excited about obtaining the easy money they are offering that you pay a high price for the shelf corp and then find out that the cash lines of credit either don’t exist yet (and you need to apply and be approved for them – Good luck on that), or are not really cash lines of credit but rather a pre-approval letter from a company friendly to the scammer stating that you are pre-approved to buy up to $1 Million (for example) in Real Estate using the Shelf Corp (but of course, you need to come up with the $400,000 Down-Payment from somewhere, and the Loan offered is really a Hard Money Loan with a 10%+ Interest Rate and 3+ Points to close. Did you really need a shelf corp to do that – No, you just got ripped-off because you did not read this first!).
  • Personal Guarantor or CFO Scam:
    This one is the same as the Established Credit Scam, except in this scam they will offer you a stand-in “CFO” or Personal Guarantor that will use his 720+ Credit Scores in conjunction with the Shelf Corporation to obtain Unsecured Financing from Lenders. So, you think to yourself…”umm, if someone else is the Personal Guarantor, then I can charge up those Lines of Credit with no risk to my Personal Credit at all”. You also think for a second “but who would be stupid enough to personally guarantee my loans?”, but then your greed takes over your mind and you brush that aside with some sort of naive rationalization, and you do the deal. You then find out that either there is no Personal Guarantor, or that the Personal Guarantor also got scammed into thinking he was not responsible for the Loans, or worse, the Personal Guarantor is someone whose identity was stolen to be used for this purpose. So, now you lost your money, committed fraud, and got into a legal battle with the Guarantor over who owes the money to the Banks (that is if you are so lucky to actually get any financing in the first place – most people never even get that far). Please watch out for this scam.
  • Tax Return/Financials Scam:
    This scam can be combined with the two scams above – The only difference here is that the scammers offer you a Shelf Corp that already has Tax Returns and Financial Statements showing Sales and Profit and Bank Deposits. These, of course, are all Fake, Fraudulent, Made-Up Documents that if you actually use to apply for financing can lend YOU in Jail (not the scammers, just you). This one is harder to fall for because you would have to convince yourself to use Fake Tax Returns on a Loan Application, but some people don’t seem to mind and end up losing everything because of this scam.
  • Secretary of State Data Harvesting Scam:
    This is the hardest one to detect. You will often find this one on Craiglist or some other Classified Website, since the scammers are usually just one-man shows with no website. The way this scam works is that the scammer advertises a shelf corporation for a really low price so you think it is such a great deal and buy the Shelf Corp from him. Months or Years later you get a call from someone saying they own the Shelf Corp and that you are not allowed to use it. After a lot of problems you find out this someone was the original incorporator of the Shelf Corp and that he never sold it to you. So, who sold it? The scammers, of course. They sold you a Corporation they did not own, and they did it without the real owner knowing about it. In this case, you would lose all your money and probably any assets you may have put in the name of the Shelf Corporation, and you may even be sued by the real owner.

Shelf Corps & Unsecured Financing: How can I obtain Unsecured Financing using my Shelf Corporation?

Although Shelf Corporations can and will allow you to obtain more Unsecured Financing, and obtain it much faster, if you lie on your Loan Applications you could find yourself in murky waters.  So, can Shelf Corporations be used to obtain Unsecured Financing?  Yes they can, and we can help you get Funded through our reliable Funding Program, however, you must build and operate a Real and Legitimate Business that has a purpose other than simply obtaining financing.  After all, what are you planning on doing with the Loans Proceeds?  Hopefully you are planning on building a successful business and not using the money as retirement funds or gambling chips. Just be honest and you will obtain the financing you need safely and legally.

Shelf Corps & Business Credit: There are Companies out there offering Shelf Corporations with existing Cash Lines of Credit and/or Tax Returns and/or Financials. Are these offers real or are they scams?

A Shelf Corporation by definition is a Business Entity with no Assets and no Liabilities – It is a blank slate.  We are well aware of Companies out there selling Shelf Corporations at very high price points along with Fraudulent Tax Returns and Financials, and even worse, Bogus Credit Lines that either do not exist or that they are unable to obtain after you pay them for the Shelf Corp.  If you buy a Shelf Corporation with any existing Credit, Credit Lines, Tax Returns, or Financials, you are guaranteed to lose your money and if you actually use the Fake Tax Returns on Loan Applications, you may end up losing your liberty too, so please don’t fall for these scams.  If it looks too good to be true, it’s probably a scam. Here is a Well-Respected Report on the Subject – check it out but please make sure you read ALL of the Report, not just the headline, otherwise you will get the wrong message.

What is the difference between purchasing a 2 Year-Old Aged Corp Vs. an older Aged Corp?

The only difference is that about 20% of the Creditors will require more than 2 Years in Business, and as such, these Creditors will only be available to the older Aged Corporations. However, the 2 Year-Old Aged Corps will qualify for 80% of the Creditors available.

Why don’t you offer Aged Corporations in the most Popular States, such as Nevada and Delaware?

The reasons we do not use these 3 States are as follows:

Nevada:
Expensive State to operate out of (High State Fees).
Currently on many Lender’s High-Risk or Restricted List due to a Reputation for Privacy and as a result, a higher concentration of Fraud.

Delaware:
8.7% Corporate Tax Rate, which is one of the Highest in the Country.
Currently on many Lender’s High-Risk or Restricted List unless you are a relatively large Company looking to go Public.

Other Corporate Credit Building Programs don’t use Aged Corporations – Why do I need an Aged Corporation for your Program?

It is not necessarily required that you use an Aged Corporation, however, the Aged Corporation gives you INSTANT “Time in Business” to meet the Minimum Time in Business Requirements of the majority of Creditors, so you can make the most out of your Credit Building Program. If you don’t have at least 2 Years in Business, most Creditors will not even want to accept your Credit Application – That’s why the Aged Corporation, when setup correctly with all the Credit-Ready Features we offer, is such a powerful tool.

Do I have to pay Dunn & Bradstreet to get “Rated” or to obtain my DUNS # in the 1st place?

No, you don’t. That is one of the biggest confusions when it comes to building Corporate Credit. D&B is REQUIRED to assign you a DUNS # as Creditors start reporting your Payment Activity, and they are also required to “Rate” your Credit Profile once you have enough Tradelines and Financials. D&B will try to sell you various Products and Services at various points in the Credit Building Process, but you do not need to buy them, and we do not recommend that you buy them either.