Acquire a Seven-Year-Old Shelf Company in California and Complete Filing for Around $1900, Plus CA State Fees
The Strategy: Secure a shelf company for use in your state and be viewed as the original owner of the company.
Top Picks for Prime Shelf Companies: Colorado Montana, Wyoming, and New Mexico are the preferred states to discover excellent shelf companies.
Avoid purchasing a shelf company that already has an established Employer Identification Number (EIN). Such shelf companies may carry hidden liabilities such as back taxes and unpaid credit card bills. It is advisable to acquire a shelf company that does not come with an assigned EIN or a pre-existing bank account.
Many shelf company providers offer shelf companies with existing EINs and/or bank accounts at higher prices. Consider this carefully; they may be offering you a shelf company burdened with debts, potential tax obligations, unfiled returns, and other potential issues. It is in your best interest to acquire a shelf company that lacks an EIN and a bank account.
Many shelf company providers offer shelf companies with existing EINs and/or bank accounts at higher prices. Consider this carefully; they may be offering you a shelf company burdened with debts, potential tax obligations, unfiled returns, and other potential issues. It is in your best interest to acquire a shelf company that lacks an EIN and a bank account.
This is crucial. It is essential that all state-level information, local business licenses, website details, and other publicly available data display a uniform address and the same principals for your shelf company. Maintaining consistent information is of utmost importance for Dun & Bradstreet (DNB) and banking institutions.
Banks require evidence that your business operations align with your place of residence. It’s a logical requirement. If you buy a shelf company from Wyoming but live in California, it’s necessary to register the shelf company in California. The banks aim to confirm that your business operates where you reside and that the shelf company is associated with your location. Therefore, it’s advisable to file the shelf company in your state of residence.
If your shelf company’s name includes terms like “real estate,” “realty,” “development,” “financial,” or similar terms, it’s improbable that you’ll secure financing. Due to substantial losses experienced by banks in the real estate and financial sectors, they are generally unwilling to provide credit to businesses operating in these industries.
Changing the name of a shelf company will reset its age to zero in the perspective of any finance company. A more advisable option is to file a Doing-Business-As (DBA) for the shelf company in the state where you operate. This approach allows you to conduct business using your preferred name while preserving the original age of the shelf company.
What States Should I Consider When Buying the Shelf corporation?
Obtain a Shelf corporation 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.