How to build corporate credit in California with a shelf company.
Don't pay $8000 for a four year old
shelf company! We offer eight year old shelf companies-- starting at
Why pay more?
- Stop donating money to your local
incorporator. Keep the difference and take someone out to dinner.
The difference is enough for a cruise for two. Why not go to the Bahamas!
- Buy a good clean shelf company for
$2995.00, and then file that company in the state where you seek to do
- The incorporators don't deserve the
money. $8000 is way too much for an eight year old shelf company,
in any state.
Don't buy a shelf company that was
initially filed in California. Why?
- California is a political,
economic and legal mess from end to end. They tax you to death
and they don't protect your property rights. In fact, they
look after the lawyers in California rather than the business
- California lawyers promote
incorporating in California.
- California lawyers routinely
attack the corporate veil of California companies. This
means that the lawyers set aside the company, as if its not
there, to go after your person assets; to satisfy the
liabilities of the company.
- The California Franchise Tax
Board charges over $800 per year for any corporation or LLC
doing business in California.
- California has no money.
They are a mess. They have long wait lines to file
Buying a shelf company from California
means you are paying the previous years' filing fees AND the premium for
its age. Since the California state filing fees, and maintenance
fees are high, this means the cost of the California shelf company will
be astronomical. We are about to explain how to obtain a low cost shelf
company and then file it in California, if that's where you intend to do
If you buy a shelf company that was
initially filed in California, you are unwittingly doing the following:
- You are spending more than you
have to for a California shelf company. Why spend $7000 -
Spend $2995 for a clean, ready-to-go, eight year old shelf company and then file it
in California if you must.
What's the difference between a
California shelf company and an out-of-state company filed in
California? Let's compare:
California Shelf Company
An Out-Of-State Company Filed in California
The company was initially filed in
California. The incorporator is going to charge you for
- Previous years' filing
- Risk premium of $1000 per
year for every year the company was in good standing.
- This means you may up
paying $3000 for a three (3) year old shelf
company. $8000 for an eight year old company from a
- Sellers of shelf companies
in California usually didn't file with the CA Franchise Tax
Board. That means you'll be smacked with penalties for
- A CA shelf company with an
EIN is the worst situation. This means the CA
franchise tax board and the State of CA will charge
penalties, interest and will subject you to high rates of
is the best option. Obtain an out-of-state shelf company,
where the annual maintenance fees are lower. Then file the
company in California. The result is the following:
- You acquire a seven year
old company starting at $2995.
- The total accumulated
filing fees that are passed onto to you is much lower.
This means a lower quote on the shelf company that you pay.
- Less risk for the seller,
which means that you can acquire the shelf company for even
is much less than the $7000 to $8000 that others will quote
you. for an eight year old shelf company.
- Apply for the EIN right
after you acquire the company, then file the company in CA,
and then file with the CA Franchise Tax Board. No
problem. You remain compliant, no back taxes, no
penalties, and no interest to pay.
result is that you are able to build a business with an
out-of-state shelf company just as if the company was originally
filed to do business in California. When you compare, both
companies have the same rights and responsibilities. Your
benefit is that you pay less, leaving more money for marketing,
research, organization, or family. California will
recognize the out-of-state company just the same as any company
that was initially filed in California. Your benefits are
the same while paying much less for the total cost of the
company. And there's no risk of penalties and interest
when acquiring an out of state company that you'll file in CA.
What States Should I Consider When Buying
Obtain a shelf company
from a state that requires a low annual filing fee to maintain
the company, respects your property rights, and doesn't require
disclosure of the owners of the company on public record.
Montana corporations are ideal. The annual filing fee is
$15 per year.