Have you ever dreamed of jumping into business? Old shelf corporations could also be the answer. These corporations are legally formed and then shelved without any activity, allowing them to age without a financial history, just a predetermined date.
Legacy corporations, often called “shelf companies,” offer a faster start-up time for several reasons:
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- Pre-registration: Old corporations are already registered and formed with the appropriate government authorities. This can save recent business owners the time that is normally required to file registration documents and wait for government processing and approval.
- Immediate availability: Because the old businesses are already existing entities, they might be transferred to a recent owner almost immediately. This is much faster than the time it typically takes to arrange a recent business from scratch, which might take several weeks depending on the state and complexity of the business structure.
- Avoiding delays in submitting initial applications: New businesses can experience many delays with initial setup, including obtaining a tax identification number, opening recent bank accounts, and registering with state and local tax agencies. Buying an old business gives you a head start so you may focus on the key activities for your recent business.
- Name availability and registration: Choosing a business name and registering it will possibly be a time-consuming process for recent businesses. Older businesses already have their name registered with the Secretary of State, eliminating the need to go through this process.
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Summary
In general, the purchase an old company can significantly reduce the administrative burden and time it takes to launch a business, making it an attractive option for entrepreneurs who want to get began quickly and with fewer bureaucratic hassles.
For those interested in considering this feature, Corporations today offers a range of old LLCs and joint stock corporations.
In the next post in the series, we’ll look at the practical points and common misconceptions about legacy shelf corporations.