A shelf corporation is “stored” for immediate availability for some point in the future.
Companies and professionals, known to sell aged corporations, stake their reputation on the line. Each corporation must be free from liability, claims, hostile action or other negative or foreseeable problems. Therefore, purchasing an aged corporation from such a company brings three assets to the table:
a. The aged shelf corporation is free from liabilities.
b. Confidence, based upon the reputation of the seller, that the shelf corporation is free from the above mentioned defects or liabilities. The last thing you need is to buy a shelf corporation with fleas.
Warning: It’s possible to buy a clean shelf corporation from a person not known to sell them. Obtain a signed, notarized, statement from the seller that the aged shelf corporation is free from liabilities. Although this will not guarantee a trouble-free corporation, it will place the seller on notice that you mean business. What’s the advantage of buying a shelf corporation from someone who isn’t a “dealer”? They usually cost less. The downside is that you never know what they really did with the corporation before you bought it. This is a judgment call with far reaching consequences in terms of liabilities, taxation and business reputation. Always be careful when buying a shelf corporation from individuals not known to sell them.
c. Lack of public exposure. It’s okay of the seller of the shelf corporation, or aged corporation, to email you a list of available corporate names and their respective ages. It’s a questionable practice to post the names of the shelf corporations on a website. Public knowledge of its age, and that it was for sale as a self corporation, somewhat jeopardizes the objective of purchasing an aged corporation.