How to build corporate credit in California with an aged shelf company.
- Need a
lease for your business? Time in business is a significant factor
in obtaining a lease for retail space, industrial space, or office
space.
- Seeking
business credit? Time in business should be at least two years of
age at the minimum. The company should be at least three years of
age.
- Looking
to overcome sales objections? Don't let your business be treated
as a "lesser" because it's new. Rather, start with an aged company
for years of time in business.
- Want to
compete with established competitors? You need an aged shelf
company.
- Time in
business is a significant issue in sales and marketing.
- Open
bidding opportunities.
What's
available and at what pricing? All of our companies are
unused, clean, litigation-free,
and debt-free.
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2017 Shelf Company $1400
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2016 Shelf Company $1500
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2015 Shelf Company $1600
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2007 Shelf Company $2395
Don't pay too much for an aged shelf
company.
- 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
$1400.00, and then file that company into California.
- The incorporators don't deserve the
money. $3000 is way too much for a three 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
owners. Proof:
- 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. What's their goal?
Lawyers seek to collect after your personal assets as well as
the assets in 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
anything.
Don't start your business with an
aged California company! 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 super 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
business.
If you buy a shelf company that was
initially filed in California, you are unwittingly doing the following:
- Don't spend too much money for a California shelf company! Why spend $3000 -
$8000?
Spend $1400 for a clean, ready-to-go, four year old shelf company and then file it
in California. The age will be respected and you don't need to
deal with back fees with the California Franchise Tax Board.
What's the difference between a
California shelf company and an out-of-state company filed in
California? Let's compare:
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California Shelf Company
(bad idea) |
An Out-Of-State Company Filed in California |
The company was initially filed in
California. The incorporator is going to charge you for
the following:
- Previous years' filing
fees.
- 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.
- 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
filing "late."
- 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
audit.
- The seller didn't pay the
CA Franchise Tax Board? After you buy the company, the
franchise tax board may suspend the company for non-payment.
- The sellers of CA shelf
companies don't file county or municipal business licenses.
This means the company is in arrears by the time you buy it.
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This
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 twelve year
old company starting for $2295.
- 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
less.
- This
is much less than the $3000 to $5000 that others will quote
you.
- 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.
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THE RESULT?
- You're able to compete
against established competitors in your area.
- Land contracts and sign
sales quicker and easier, with less objections and more
credibility.
- Increase revenue into the
business bank account.
- Easier financing.
- Pay less than obtaining a
California born shelf company. This leaves 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.
- More secure corporate
veil.
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What States Should I Consider When Buying
the Company? |
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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
$20 per year. The New Mexico LLC's work great in
California as well. There's no annual fee for a NM LLC. |
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CALL 484.256.4563 |
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