A quick guide on how to set up an Inc. using an aged shelf company

 

So, you are thinking about starting an incorporation using an aged shelf company but don't know where to start. Lucky for you, this article will guide you on the exact same.

Here are steps on how to set up an Inc. using an aged shelf company.

•  Decide on a business entity

When setting up a business, the first thing that you do is research and decide the type of business you want to build. There are four main types of business, these are Sole Proprietorship, S corporation, C corporation, and Limited Liability Company or LLC.  

• Find your shelf company and negotiate with the seller.

When you are looking for a shelf company, you need to decide how old you want your business to be. The older the shelf company is, the more expensive will it be. Investors, lenders, and suppliers usually consider a company that has been at least established for 2 years. Before buying the shelf corporation, make sure that it is clean and does not come with any debts or liabilities. Your shelf company should not have any financial history whatsoever. It should not have corporate credit, tradelines, or a bank account. You must check the shelf company's financial history since companies with financial history may come up with pre-existing debt and once you purchase it, the debt will be yours to pay.

• Sign the transfer agreement 

 The transfer agreement or the "Contract of Sale" indicates that you will now be the new shareholder of the company. Once you sign the transfer agreement, the ownership of the shelf company will be transferred from its existing owner to you and you will become the new owner. 

• Edit the company's registered office address 

 Once you have bought the shelf company and signed the transfer agreement, it is time to change the registered office address. The shelf company comes with an existing address, and you might want to change it according to your business's registered office address if you don't want to be charged for using somebody else's address. 

• Get registered as the director of the company. 

 Register yourself as the director of the company if you want to open a business bank account. 

• Come up with a business name and hire a registered agent service 

 You can either use the shelf company's existing name or come up with a new name for your business. Conduct a name search on your state's website to make sure that your business name is authentic and no other business is using the same name. Make sure that you conduct trademark research if you decide to use the same business name in other locations.

To conclude, purchasing a shelf company will be very beneficial for your business. You need to be prepared by knowing all the steps required to set up incorporation using a shelf company. Make sure that your shelf company is clean and suits all your business needs.