Shelf Corporations

Shelf Corporations

Shelf corporations are those that have no activity so they are said to have been placed on a shelf. The reason that the corporation is kept in this manner rather than ended is because there are plenty of people out there who would rather purchase one of these shelf corporations than start one from scratch. This helps them obtain contracts that require the business to be established for a length of time before they can place a bid on them. Since it gives the appearance they have been in business for a long period of time it can be easier to establish relationships with customers and with creditors.

For this reason shelf corporations aren’t always seen as the most legitimate method of establishing a business for yourself. While you aren’t committing fraud when you promote shelf corporations you aren’t being honest either about the time frame of your particular business. Many lenders have caught on to the way shelf corporations are promoted and they will ask specific questions to find out if you have something to hide along these guidelines.

The selling of shelf corporations continues to be quite profitable though in the United States, Canada, and parts of Europe. Many shelf corporations are established with the goal of being able to sell them later for a profit. If you are considering buying any shelf corporations make sure you take a close look at the reputation they have as well as their financial dealings. You don’t want to find out your shelf corporation doesn’t have a good record with consumers or creditors because you will have a difficult time as well under that business name.

A little inside knowledge, and some action, could be all that is standing between your business success and wealth, or a "Going Out Of Business" sign on the front of you business.

Unfortunately, most business fail. Also, most entrepreneurs don't know the difference between the "business credit" you local bank extends you when you start a business, and true corporae credit.
click here to find out the difference!

There was a series of events that happened to us, and then with a struggling potential entrepeneur that resulted in us publishing this information. If we had known this information 15 years ago who knows where we'd be now!
To read the details of our complete credit mis-adventure, click here

Patti & Robert Farnham
(authors of "Corporate Credit Power)

More Corporate Credit Articles:

Establish Small Business Credit
Small businesses often don’t have the capital they need to cover all of their start up costs. Instead of pushing your desire to operate your own business look into ways you can establish small business credit. There are some good options available for you. (click here for the complete "Establish Small Business Credit" article.)

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Imagine Being Able To Open, Start, Buy or Expand
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Readers Comments

Hi Patti and Rob
Thanks yo so much for all the info. I think I'm actually going to start my own restaurant. I just met with a chef who has owned and worked for many, many businesses. He said he wished he could have found your info years ago! And he's been in this business for over 30 years. I'm going to be able to do this without jeopardizing my or my husbands credit. My husband has owned his own corporation for years, and as you mentioned, everything he has done in the past 15 years reflects back to his SS# and personal info!! That stinks. We are both studying all of this new info.
Thanks Again!!
Sincerely,

Michelle